a) What is transportation by pipeline? b) Explain five benefits of transport by air. c)...

Explanation

(a) Transportation by pipeline is a means of moving liquid and gases from one place to another.

(b)Benefits of transport by air:

• Air transport is the fastest means of transportation.
• The danger of damage to delicate, fragile and perishable goods is reduced to the barest minimum.
• It requires less handling of goods, thereby reducing incidence of pilfering.
• The rate of accidents is minimal.
• It is a more comfortable means of transportation, hence suitable for long journeys.
• The cost of insuring goods conveyed by air is reduced because of the shorter time the insurance company is at risk.
• It costs nothing to provide/maintain air routes.
• Markets are extended as distant markets are easily reached.

(c)Factors to consider in choosing an effective channel of distribution:

• Nature of the product: perishable goods need shorter channels of distribution.
• Competitor’s channels: producers should consider channels used by other producers.
• Cost of the channel: the cost of using a particular channel of distribution should be considered.
• Market size: the number of potential customers will affect the choice of the channel used.
• Financial resources of the producer: the stronger the producer is financially, the lesser the need is for middlemen, hence the need for a short channel.
• Geographical concentration of customers: if customers are concentrated in a particular area, a short channel is required. If customers are widely scattered, a longer channel will be preferred.
• Size of the order: the size of the order will be considered in choosing a channel of distribution.
• Unit value of a product: expensive goods require direct distribution to customers.