Question 3
- What is a channel of distribution?
- Malam Audu is a poultry farmer who sells chicken and eggs. List and explain six factors he would consider in choosing the channel of distribution for his products.
Observation
The candidate who attempted the question did well in part (a) of the question. However, they could not apply their knowledge of channel of distribution in answering part (b) of the question.
The expected responses  to the question include:
    
    (a)  A channel of distribution is the path or  route that products follow from production point to the final consumer.     
                                                                          
    (b)  Factors that Mr. Audu  Would Consider in Choosing His Channel of  Distribution
    (i)    Nature  of the Product: Some of his products  are fragile and as a result, he  would   require a suitable channel of  distribution. 
    (ii)    Size of the Order: The quantity of order as a consignment  would determine his choice of distribution.
    ( iii)  Customer’s Preferences: The channel of distribution preferred  by customers he serves would determine the channel to be used  by Mr. Audu.
    (iv)   Competition: He would consider the channel being  used by competitors to reach his customers.
    (v)    Cost: The cost of the channel to be used would also be considered  because it would add to the cost of distributing his products.
    (vi)   Location of the Market: The proximity of the market would determine the type of channel he would  use to reach his customers. 
    (vii)  Storage/Warehousing: The available storage facilities would  determine the type of channel he would use.                                                             
    (viii)   Weather and Climate: The condition of the weather and climate in  his area of operations would determine his choice of channel.
