Factors considered in choosing a channel of distribution for any particular product.
- Nature of goods: Technical, Industrial, Perishable or goods that require servicing and installation should be sold directly to ultimate consumers or through retailers.
- Marketing costs: Goods that require special marketing facilities like storage, refrigeration, etc should be sold through intermediaries in order to cost share the marketing costs.
- Size of the market: where the size of market is large enough, direct selling is preferred.
- Nature of the market: where the market is local and the producer can reach his customers with ease and make large sales then direct selling is the best.
- Scale of production: Small producers like small scale farmers should sell their products directly
- Marketing risks: Where these risks are high such as spoilage and fall in value, its advisable to sell through intermediaries in order to distribute these risks.
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