4.5.4|Place Flashcards
distribution
process getting a product to consumers
distribution channel
path taken to get a product from the producer to customer
example:
retailer
vending machine
intermediaries (people or organisations used to help in the distribution process e.g. wholesalers, agents)
zero channel distribution network
producer sells its product directly to consumer
e.g. Airlines use the internet to sell tickers
One channel distribution network
use of single intermediary
e.g. agent or retailer
Airlines use travel agent to sell their ticket
two channel distribution network
two intermediaries
usually for mass produced products
e.g. wholesalers and retailer
e.g. convenience stores
three channel distribution network
three intermediaries
agent to wholesaler to retailer
e.g. agents are used to sell products in overseas markets
wholesaler
buy product in large quantities from manufacturers and reselling the goods in smaller quantities to retailers.