State two product-related and two market-related factors affecting choice of channels of distribution
Two product-related factors are:
(i) Nature of product Perishable and dairy products also use direct channels, while durable products require longer channels to reach widespread markets. At the same time, goods whose unit value is low, prefer longer channels, whereas, high value products are directly distributed.
(ii) Geographical concentration of buyers When the number of buyers is small and concentrated in a small place, shorter channels may be used. But, if the number of buyers is large and market is widespread, longer channels should be preferred.