1.3.4 distribution Flashcards
distribution channels
the process of getting the right product or service to the consumer in the right place
manufacturer > consumer
two stage
direct marketing
products are sold directly from manufacturer to consumer
manufacturer > retailer > consumer
three stage
retailers spread all over the country.
manufacturer can get the product to where consumers can by it using retailers
manufacturer > wholesaler > retailer > consumer
four stage
manufacturers deal with a few wholesalers and sell in large quantities.
wholesalers break orders into smaller quantities.
can offer trade credit to small retailers
manufacturer > agent >| wholesaler > retailer > consumer
five stage
use agent to sell into another country.
agent will speak the language.
agent is the middle man between manufacturer and foreign wholesaler
online distribution
main benefit = niche products can reach a wider audience.
low barriers to entry = set up costs are small.
can cater to a far greater geographically dispersed market than traditional local shops.