Final answer:
Market structure, level of competition, and product type are key elements in distribution decisions.
Step-by-step explanation:
One of the key elements in distribution decisions, in the context of factors affecting choice of channels, is the market structure. Market structure refers to how competitive the industry is, and it plays a significant role in determining the distribution strategy. For example, in a highly competitive market, a company may choose to distribute its products through multiple channels to reach a larger customer base and gain a competitive advantage.
Another important factor to consider is the level of competition a company faces. With advancements in technology and globalization, local businesses now face increased competition from businesses around the world.
This has led to the development of online marketplaces where buyers and suppliers can connect globally. As a result, the choice of distribution channels needs to take into account the level of competition and the ability to reach a wider customer base.
Additionally, the type of product being distributed can also impact the choice of channels. For example, perishable goods, such as fresh produce, may require a distribution channel that ensures timely delivery to maintain freshness and quality. On the other hand, non-perishable goods may have more flexibility in terms of distribution channels.