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Effectively without the services of wholesalers and retailers. (b) Number of potential buyers If the number of buyers is likely to be greater, the distribution channel will be long. On the other hand, if fewer consumers are expected, the manufacturer can effectively sell to consumers directly by appointing salespeople. (c) Order size If the volume of order placed by customers is large, the factory can undertake direct sales as in the case of industrial goods. But when the order size is small, intermediaries are appointed to distribute the products.
Geographic concentration of the market When customers are concentrated in a particular place or market, the distribution channel will be short and the manufacturer can supply goods directly to that area by opening its phone number database own stores or sales warehouses. If buyers are widely dispersed, it is very difficult for the manufacturer to establish a direct link with consumers, and the services of wholesalers and retailers will be used. (e) Buying habits of customers This includes customers' tastes, preferences, likes and dislikes. Customers also expect certain services such as credit, personal attention, after-sales services, etc. All these factors greatly influence the choice of distribution channel.
The nature of mediators Marketing intermediaries are vital people in the distribution of goods. They greatly influence the marketing of goods. The important factors related to choosing a particular broker are explained as follows: (a) The cost of distributing the goods The cost of distribution through intermediaries is one of the major considerations that a manufacturer must take into account. Higher distribution cost will increase the cost of the product. The manufacturer must select the most economical distribution channel. When finalizing the distribution channel, the services provided by intermediaries must be taken into account. It can be noted that the manufacturer chooses an expensive marketing intermediary to ensure various marketing services that others do not provide.
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