1.3.4 - Distribution Flashcards
Define Distribution?
The delivery of goods from the producer to the consumer.
Define a Distribution Channel?
The route taken by a product from the producer to the consumer.
Name Methods of Direct Selling?
- The Internet
- Direct Mail
- Door-to-door Selling
- Mail Order Catalogues
- Direct Response Adverts
- Telephone Selling
What is a Retailer?
A business that buys goods from manufacturers and wholesalers, and sells them in smaller quantities to retailers.
Name different types of Retailers?
- Independents
- Supermarkets
- Department Stores
- Multiples
- Online Retailers
- Superstores
- Kiosks/Street Vendors
- Market Traders
What services do Retailers provide?
- They buy large quantities from manufacturers and wholesalers, and sell small quantities to customers. This is called breaking-bulk.
- They sell in locations that are convenient to consumers. Most supermarkets, for example, are conveniently located and have ample parking space.
- They may add value to products by providing other services.
Define a Wholesaler?
A business that buys goods from manufacturers and sells them in smaller quantities to retailers.
Define a Agent / Broker?
An intermediary that brings together buyers and sellers
What does a business have to consider when deciding on the right distribution channel?
- The nature of the product
- Cost
- The market
- Control
Name the benefits to consumers of online distribution?
- It is cheaper because online retailers often have lower costs
- Consumers can shop 24/7
- There is generally a huge amount of choice
- People can shop from anywhere if they have access to the internet
Name the benefits to businesses of online distribution?
- Lower start-up costs - both fixed and variable costs are lower
- Lower costs when processing transactions - many systems are automated
- Payments can be made and received online using credit cards or PayPal
- Businesses can serve their customers 24/7
- Businesses can have more choice of where to locate their operations
