1.3.4 Distribution + 1.3.5 Boston Matrix Flashcards
What is traditional distribution channels
Small producers sell to wholesalers who then sell to retailers
What is modern distribution
Producers sell to a large retailer who then distribute the goods to their stores
What is direct distribution
Producers sell products directly to the consumer
What is indirect online distribution
Use of established market websites
What is 4 stage distribution
- Manufacturer
- Wholesaler
- Retailer
- Consumers
What is 3 stage distribution
- Manufacturer
- Retailer
- Consumers
What is 2 stage distribution
Products are bought by the consumer direct from the manufacture
What factors effect choosing channels
Convenience
Cost
Reputation
The market location
What is B2C
Order online and take delivery home or work
click and collect
What is B2B
Specialist software can find the cheapest supplier and sort out the paperwork
What are advantages of online distribution
Cheaper
Open 24/7
Can offer a wider range of products
What are the disadvantages of online distribution
Cannot inspect goods
Excludes customers without internet access
What is product portfolio
The collection of all the products and services offered by a company
What is the Boston matrix
A method used for analysing a firms product portfolio according to the market share of the product and the rate of market growth in which the product is sold
What are stars
High market share in high growth market
Increasing sales revenue
Competitors are attracted
May cause negative cash flow
