1.3.4 Flashcards
Factors that depend on distribution channels in order.
Cost
Convince
Coverage
Control
Expand on control in the Distribution channel.
More outlets = Less control
Expand on how costs affect the Distribution channel
More distribution channels = greater costs
Expand on coverage in the Distribution channel
More numbers of outlets = less control and products available
Expand on the convenience in Distribution channel
Requires to have certain products available everywhere
What are the different types of Distribution channel
2 stage
3 stage
4 stage
What does the four stage Distribution channel consist of.
Producer
wholesaler
retailers
consumers
Why may businesses use four stage Distribution channel
More convenient for consumers have it readily available.
What does three stage Distribution channel consist off?
Producer
retailer (intermediary)
consumers
When is the three stage Distribution channel used. (2 reasons)
High profit margins
High demand
What does the two stage Distribution channel consist off?
Producer
Consumer
When is two stage Distribution channel used?
Online
How has distribution been affected by social trends?
Growth of E-commence and online selling
What are 2 benefits from online retailing?
Reduces costs
Reach wider audience
What is the shift from products to services?
Customers value experiences more than products.
