COMMENTS

   (a)      Candidates’ performance in this question was above average as most of them answered the questions as required.

   (b)     Candidates seemed to be ignorant of the demand of the question.  Most candidates did not answer the question and those who did performed poorly.

    The following are some of the required answers:

  (a)     The factors that affect the choice of channel of distribution are: Cost, capital, control, coverage, character, continuity competitors’ channels, industry distribution policy and origin of the product.
          (i)      Cost   -The manufacturer considers the cost of using his own channel or existing one.
          (ii)      Capital           - The capital available to the manufacturer will determiner the type of channel to adopt.
(iii)     Control - The level of control desired by the manufacturer will affect the choice of channel to be used.  A company’s own sales force affords the most control but at a cost.  As a channel grows longer, the ability      to control price, volume and type of outlet diminishes.