3.3.4 Place Decision

Question 1

what is a distribution channel?

Answer 1

A distribution channel is something that moves a product through the stages from manufacturing to final consumption

Question 2

Name the 4 types of intermediary
(selling locations)

Answer 2

Retailer - shops
wholesaler - sell to shops
distributor - someone who sells your product
agent - a group that sell your product

Question 3

things to do before and to considor when coosing a distribution stratergy

Answer 3

gather market info
communicate special offers
link production and consumption
extra:
level on control on suppliers or sellers
business resources, can you set up what you need to use certain distribution channels?

Question 4

What are the key factors to consider when choosing a distribution channel?

Answer 4

% that retailer/ wholesalers take
your production rate
the price
nature of the product
competition

Question 5

limitations of distribution channels

Answer 5

you lose out on some of the profits

Question 6

explain direct selling

Answer 6

business selling directly to consumer
(possibly online)

Question 7

benefits of direct selling

Answer 7

choose the price (more control)
keep all profits
better customer relationship (reputation)

Question 8

drawbacks of direct selling

Answer 8

hard to get it out there
more work for you

Question 9

explain retailing DS

Answer 9

manufactory selling to a retailer then they sell your product

Question 10

benefits of retailing

Answer 10

easier to sell
likely to have a higher sell volume
wider reach

Question 11

explain wholesaling

Answer 11

wholesalers buy in bulk to sell to retailers

Question 12

benefits of wholesaling

Answer 12

easier to sell
sell in bulk
higher footfall
customers almost guaranteed
easier to maintain