Selection of a distribution channel using the integrated FUCOM-MARCOS model

Abstract

The management of manufacturing companies faces a number of decisions, and one of the most important is the selection of distribution channels. A large number of these companies do not sell their products directly to end consumers. For this reason, there are marketing intermediaries between manufacturers and end consumers whose primary function is to connect manufacturers and consumers. Their task is to provide the goods from manufacturers to consumers with the satisfaction of logistics characteristics: at the right time, at the right place and in a form that is convenient to use, and certainly with minimal costs. Distribution is one of four marketing mix instruments without which the optimal combination of the instruments would not be obtained. Thus, the decision on selecting distribution channels is as important as the decisions regarding products, prices and promotion. Based on the set criteria and the evaluation of certain distribution channels by the criteria, the management of the company will be able to make the best decision. The evaluation of distribution channels based on the set criteria was performed by marketing experts and experts in certain markets using an integrated multi-criteria model. The FUCOM method was applied to determine the significance of the criteria, and then the distribution channels were evaluated by applying the new MARCOS method. Thereafter, a sensitivity analysis was performed using other MCDM methods to verify the results previously obtained.