ABSTRACT
Distribution decisions involve the evaluation and selection of market intermediaries such as agents, wholesalers, and retailers. Although many small firms elect to sell directly to the end-user, in seeking growth opportunity the sheer cost of reaching a wider market may necessitate operating through one or more of these ‘channels’ of distribution. In doing so, the firm is not only faced with the problem of motivating channel members to accept its products, but also with increased vulnerability, as it becomes more remote from the end-user market. Essentially, distribution decisions involve a trade-off between distribution costs and marketing control.
