1.3.4 - Distribution

Question 1

Def of distribution channel

Answer 1

The route a product taken from producer to consumer

Question 2

Def of intermediaries

Answer 2

Are businesses between the producer and the consumer in a distribution channel, such as retailers

Question 3

Def of distribution

Answer 3

Is concerned with getting the products to the right place for consumers and at the right time

Question 4

What are the 4 distribution channels

Answer 4

Direct channel, modern, traditional and agent channel

Question 5

Traditional channel

Answer 5

Producer - wholesaler - retailer - consumer

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Question 6

Benefit of traditional channel

Answer 6

Helps smaller firms to achieve a wide distribution across many outlets

Question 7

Weaknesses of traditional channel

Answer 7

Pushes selling prices up as wholesalers and retailers with both add their own mark up

Question 8

Direct to retailer

Answer 8

Producer - consumer

Question 9

Strengths of direct channel

Answer 9

Exposing producers to tough negotiations with retail chains on price and credit terms

Question 10

Benefits of direct

Answer 10

Able to sell products cheap to major retail chains, saving on wholesalers markup

Question 11

Modern

Answer 11

Producer - retailer - consumer

Question 12

Agent

Answer 12

Producer - agent - wholesaler - retailer - consumer

Question 13

Benefits of modern distribution

Answer 13

Enables producer to directly control the supply and marketing of their products via limited and regulated outlets

Question 14

Weakness of modern channel

Answer 14

Time consuming to manage relationship with multiple retailers

Question 15

Benefits of agent

Answer 15

They can make selling in another country very simple due to market knowledge

Question 16

Weakness of agent channel

Answer 16

Makes supply chain longer which can push the price to final consumer

Question 17

Def of producer

Answer 17

Organisations that take raw materials or components and process them into finished or semi processed goods

Question 18

Def wholesaler

Answer 18

Buy large quantities of supplies and sell them on in smaller quantities they act as intermediary between manufacturers and retailers and consumers

Question 19

Def retailer

Answer 19

An organisation that sells goods and services to the general public or end user

Question 20

Def customer

Answer 20

The end user of a product or service

Question 21

What is it called when a wholesaler sends to a retailer

Answer 21

Business2business

Question 22

Advantage of online retail for small businesses

Answer 22

They can’t afford building e-commerce platforms so exiting ones like eBay offer chance to sell online to a wide audience

Question 23

How has ‘online’ affected distribution to affect social trends

Answer 23

• Websites offering a range or varied products with ability to update product on daily basis.
• offers small firms the ability to reach global audience

Question 24

Can all services be distributed online?

Answer 24

Some services can’t be distributed online eg hotel rooms and haircuts though the way of booking them can moved to online