Question

Explain 'Number of buyers' as considerations related to market while selecting a channel of distribution.

Answer 1

1. Large Number of Buyers:
   When there is a large number of buyers spread across different regions, businesses need a broader distribution network involving intermediaries like wholesalers and retailers to ensure widespread product availability.

2. Small Number of Buyers:
   If the buyers are limited or concentrated in specific locations, direct channels (e.g., selling directly to customers) are more suitable, reducing the need for intermediaries and ensuring better control over customer interactions.