Final answer:
The process of selecting a distribution channel is complex and involves several factors, including product nature, target market, competition, marketing strategies, and costs, not just the degree of directness and the number of channel members.
Step-by-step explanation:
The statement that the major considerations in channel of distribution selection include the degree of directness and the number of channel members is, in fact, false. The process of selecting a distribution channel is complex and involves several factors beyond the degree of directness and the number of channel members. Alongside these aspects, businesses also need to consider the nature of the product, the target market, competition, marketing strategies, costs, and the overall goals of the company.
For instance, the nature of the product affects channel choice, as perishable goods may require a more direct and speedy route to market compared to durable goods. The target market is also a crucial consideration; for example, if customers are concentrated in a particular geographic area, a different distribution strategy might be needed than if customers are widely dispersed. Other considerations include the role of government in regulating certain products, the nature of supply and demand in a particular market, and how pricing strategies are developed.
The Price System at Work and Prices as Signals within a market structure influence distribution choices as they relate to cost to the consumer and profit margin for the company. Also, the level of competition within market structures and understanding Competition and Market Structures are important to make an informed choice on the distribution channel. Distribution considerations can also be influenced by international trade factors and any potential trade deficits and exchange rates that may impact cost and supply chain logistics.