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The effectiveness of distribution (and hence its impact on demand) is determined by the shopping habits of the target market and the number of stores of the required types that carry the product. For example, if adventurers are being targeted, then it is more effective to have a greater number of sports stores and bike shops.
The number of stores actually stocking a firm’s products is determined by the margin offered to them, the expected sales of the products, and the extra support provided.