Chain Of Production And Distribution Channels Flashcards
Explain primary sector
Made up of extra rice industries which take something or materials from the earth and land and sea. Ex. Forestry, fishing, mining, farming
Explain secondary sector
Manufacturing and construction sector of the economy. The firms in this sector use goods from the primary sector and change them into finished/semi finished products. Ex. Clothes, chairs, food processing and building industries.
Explain tertiary/service sector
Provides a service to the community. Ex. ,aching a, accountant, shop owner
Explain channels of diatribution and give four examples
The methods used to transfer goods from a manufacturers to the consumer.
Manufacturer—— wholesaler——retailer——-consumer ( goods sold in small shop, bread, milk)
Manufacturer———————–retailer——-consumer
( items sold in large shop , supervalu, bread and milk)
Manufacturer————————————-consumer
(Tailored suit, wedding dress)
Foreign marketer—import agent—wholesaler—retailer—consumer
(Exotic fruit/ cars)
Explain chain of production
The various production or processing stages that a good or service goes through before its sold to the consumer
Explain what a wholesaler is
A company or person that buys large quantities of goods from different manufacturers and sells them in smaller quantities to retailers.
Name five ways on how a wholesaler benefits a manufacturer
Manufacturers have a small number of customers so which reduces their overhead costs.
Manufacturers are saved were housing costs
Gives manufacturers capital for current expenditure
Prevents manufacturers from making goods that go out of fashion
Name five things a wholesaler does for a manufacturer
Buys very large quantities
Stores the goods
Pays promptly for goods
Provides manufacturer with information on current trends
Promotes the goods to retailers and consumers.
Name five things a wholesaler does for a retailer
Provides a wide range of goods Sells goods in small quantities Delivers goods Provides credit facilities Provides information about goods coming onto the market.
State five benefits a retailer because of going to a wholesaler.
Retailers need deal with only a small number of wholesalers rather than lots of manufacturers
Retailers can’t store large quantities of goods
Reduces retailers transport costs and saves time
Retailers can sell all of their stock before payment is due if they pay on credit
Prevents retailers over sticking out of fashion produce..
What is a cash and carry wholesaler and how do they differ from regular wholesalers with an example
These are wholesalers that act as supermarkets to retailers and consumers are not permitted to shop in them
They differ by:
They don’t give credit
They don’t deliver goods
They operate on a self service basis
They provide ample parking space for retailers
They have lower prices.
Ex. Musgraves
Explain retailers
A retailer is somebody or an outlet who sells finished goods to a consumer.
State four advantages for the consumer to go to a retailer
You get access to a wide range of goods
Sell goods in small quantities
They can offer advice to consumers about products to consumers
Provide credit facilities and some shops except trade ins.
Name three recent trends in retailing in Ireland.
The arrival of international discount stores ex. Lidl, aldi
Main growth in the number of shopping centres and retailer outlets
Increasing use in e-commerce (internet shopping)
