Question
Explain any three market-related considerations to be used by an entrepreneur while selecting the channel for distribution.

Answer

The following market-related considerations to be used by an entrepreneur while selecting the channel for distribution:
Number of buyers: If the number of buyers is large then it is better to take the services of middlemen for the distribution of the goods. On the contrary, the distribution should be done by the manufacturer directly if the number of buyers is less.
Buying habits: A manufacturer should take the services of middlemen if his/her financial position does not permit him/her to sell goods on credit to those consumers who are in the habit of purchasing goods on credit.
Buying quantity: It is useful for the manufacturer to rely on the services of middlemen if the goods are bought in smaller quantity.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Similar questions

Answer each of these questions in about fifty words:
Explain the need and importance of Specialized Financial Institutions in India?
List the socio-economic benefits that are expected to be acquired by an enterprise from its proposed investment.
What is referred to as the excess of selling price over variable cost?
Answer each of these questions in about fifty words:
Which sources provide the supply for long-term funds?
Abhiraj Ltd., an Indian company, started functioning in 1999 and was registered under the Companies Act, 1956. The Securities and Exchange Board of India performed one of its functions and conducted investigations against Abhiraj Ltd. The investigations resulted into the fact that the company did not follow the proper procedure. Therefore the Securities and Exchange Board of India imposed penalty upon the company.
  1. Identify the function being performed by the Securities and Exchange Board of India (SEBI).
  2. Can Abhiraj Ltd. appeal against SEBI’s decision? If yes, where?
A stock exchange performs many functions. State any four.
Give the unit of sale for the following businesses: Mall, Restaurant, Cricket Match, Theatre.
Naman is a model and is very conscious about his skin. After reviewing several creams and lotions, he decided to purchase Platinum Premium' cream which is a sunscreen and fairness cream rolled in one. He paid 2300 for a 100gm lotion and was satisfied with the deal. Which factors were considered by him before deciding on the value to be placed on the above cream?
What is meant by 'Problem Identification'? State its any two objectives and also give an example of 'Problem Identification'.
Enumerate the importance of franchising.