1.3.4 Distribution Flashcards
Define place
●Place defines both the physical location where a product is available as well as the distribution channel it has travelled through to get from the manufacturer to the customer
●Place can be a physical market where buyers and sellers meet face to face or a virtual location i.e. over the internet
What is distribution
Distribution is the process of getting the firm’s product to the market
What are short distribution channels
Short distribution channels are where the producer sells either directly to the customer or through a retailer
What are long distribution channels
are where there are more than one intermediary (middle person) between the producer and the customer
What are the types of distribution channels
- Direct selling
- retailers
- wholesalers
- ecommerce
- multi channel
Describe direct selling
Producers sell directly to the final customer
Describe retailers
Producers sell products to the general public
End of the channel of distribution
Acts as an intermediary between products , wholesalers and the consumer
Describe wholesalers
They buy large quantities of suppliers from producers and sell them in small quantities
They act as a intermediary between manufactures and retailers and consumers
Describe e commercial
Firms benifits from the power of the internet to sell their products
Describe multi channel distribution
Is when a firm chosen to use a combination of methods
What are manufactures/ producers
Organisations that take raw materials or components and process them into finished or semi processed goods
What things effect the distribution decisions
- Type of product
- market
- quantity and frequency
- geographical location
- cost
- degree of control
Changes in distribution to reflect social trends include
Online distribution
Changing from product to service
