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The nature of the market of the appropriate distribution channel. As Lazo and Corbin put it, marketing departments choose channels based on customer desires. The number of buyers for a product affects the choice of distribution channel. The following factors are taken into consideration in this regard: (a) Industrial market consumer In the case of industrial markets, the number of buyers is smaller; A shorter distribution channel can be adopted. These customers usually buy directly from manufacturers. There is no need for marketing intermediaries in this case. But in case of consumer markets, where there are a large number of buyers, a longer distribution channel is used.
The distribution process cannot be carried out 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 phone number database 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. (d) 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 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. 3- 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.
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