1.3.4.- Distribution

Question 1

Distribution channels

Answer 1

the process in getting the right product or service to the consumer in the right place

Question 2

types of distribution channels

Answer 2

Manufacturer > consumer

Manufacturer > retailer > consumer

Manufacturer > warehouse > retailer > consumer

Manufacturer > agent > warehouse > retailer > consumer

Question 3

Manufacturer > consumer

Answer 3

direct marketing
includes factory shops
sold directly to the consumer

Question 4

manufacturer > retailer > consumer

Answer 4

retailers spread all over the country giving manufacturer distribution and volume

can get product where ever they need it

Question 5

Manufacturer > wholesaler > retailer > consumer

Answer 5

sell to wholesaler in large quantities

wholesalers break bulk orders into smaller quantities

wholesalers can offer trade credit terms to the smaller retailer, benefitting them

Question 6

Manufacturer > agent > wholesaler > retailer > consumer

Answer 6

agents are particularly useful in foreign countries as they will speak the language, have local connections, and understand the tax laws

disadvantage is that they lengthen the supply chain meaning the price can be pushed up to the final consumer

Question 7

changes in distribution to reflect social trends

Answer 7

online distribution - reaches a wider audience, low barriers to entry, low setup costs

Question 8

changing from a product to a service

Answer 8

the concept that you do not have to own something to use it e.g. music