1.3.4 Distribution

Question 1

Distribution

Answer 1

Place in marketing mix
Distribution is about availability, how to get the product to customers
Distribution channel = Route taken by product as it moves from producer to consumer

Question 2

Short Distribution Channel

Answer 2

Advantages - reduced costs, can sell in a quicker way, more control
Disadvantages - may be harder for customers - certain products - can’t just go to the shop

Question 3

Long distribution channel

Answer 3

Advantages
Whole sales bulk buys - can sell cheaper - higher volume of sales - increased exposure - brand loyalty

Disadvantages
Loss of control, sets price not in producers intentions - different perception in customers mind

Question 4

Different markets and what channel they’re likely to use

Answer 4

Mass - use intermediaries
Local market - try and avoid intermediaries, target customers directly
Overseas - likely to use specialists in that country - familiar with the customs
Business to business - likely to use a direct channel

Question 5

Changes in distribution - Social Trends

Answer 5

Online distribution - huge growth in online shopping, has adapted digitally - may use shorter channel - do not need retailer
Changing from a good to a service - e.g Netflix

Question 6

Factors affecting choice of distribution channel

Answer 6

Type of product
Costs involved
Type of market
Amount of control producers want
Value of product