distribution

Question 1

distribution definition

Answer 1

route a product takes from manufacturer to consumer

Question 2

what are retailers

Answer 2

shops who sell to consumers e.g tesco, Argos etc

Question 3

what are wholesalers

Answer 3

buy goods from manufactureres in bulk and sell them in smaller quanities to retailers
called breaking bulk
make distribution simplier as without retailer manufacturer would have to make seperate deliveries to retailers
manufacturers dont have to wait for customers to buy products before they get paid
act as retailers storage cupboard-they can store more goods then a retailer can

Question 4

what are the names of the 3 channels of distribution

Answer 4

direct selling (two stage channel)
indirect selling (three stage channel)
indirect selling (four stage channel)

Question 5

direct selling (two stage channel)

Answer 5

manufactuter-consumer

internet has me#ade it asier for manufactureres to sell directly to the consumer
buying and selling on internet=ecommerence
can be door by door to oor selling, TV, shopping channels etc
hairdressers sell their services directly to consumer

Question 6

indirect selling (three stage channel)

Answer 6

manu-retailer-consumer
common for recreational items e.g clothes, shoes, homeware
retilers are in places where convienet such as shop or high street

Question 7

indirect selling (four stage channel)

Answer 7

manufacturer-wholesaler-retailer-consumer
traditional method of disstribtuion for groeries e.g by supermarkets

Question 8

what is a multi-channel distribtuion

Answer 8

when businesses sell through more than one mthod e.g online and in store
gives felxibility for consumers as able to buy from serveal different methods
wide market coverage for maufactuers

Question 9

dis of multichanlle distribtuion

Answer 9

added costs
more expensive to have an online store as wel as a physical shop

Question 10

adv of multi channel distribution

Answer 10

allows them to target a wider market

Question 11

online distibution

Answer 11

streaming or downloading of media content via the internet
consumer is purchasing the right to downlod the media content as opposed to buying a good-purchasing a service rather than a phsycial product

Question 12

adv of online distribution

Answer 12

distribution is direct/immediate to consumer
costs savings for business as dont have to spend money on producing boxed products
price cheaper for consumers then buying a phsycial film/book
more enviromentally ferindly than production of phsycial gooods
reduces pollution due to not having to transport goods
set up costs are low

Question 13

dis of online retailing

Answer 13

requires different set of skills so staff may need further training in IT skills