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Nature of the product: This factor includes physical characteristics of the product and determine how they going to impact a particular channel of distribution. It includes factors like Perishability, unit of product, weight of product etc. Nature of the market: It is very important to choose the proper channel according to the market. This includes factors like industrial market, size of order, number of prospective buyers and buying habits of customers. Middleman: For marketing channel, it is important to see the nature of middleman. Factors include cost of distribution of goods, services provided by middleman, greater volume of sales.

Operation Management, Management Studies

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