Distribution

Question 1

What is distribution?

Answer 1

getting the products to the right place for consumers and at the right time

Question 2

What is distribution channels?

Answer 2

the route taken by the product as it moves from the producer to the customer

Question 3

What are the different methods of distribution?

Answer 3

Traditional
Direct
Modern
5-step (agent)

Question 4

What is an agent?

Answer 4

facilitates the sale between and a wholesaler, especially in foreign markets. they receive commission and renown for specialist knowledge

Question 5

What is the direct route?

Answer 5

p-c

Question 6

What is the modern route?

Answer 6

p-r-c

Question 7

What is the traditional route?

Answer 7

p-w-r-c

Question 8

What is the agent route?

Answer 8

p-a-w-r-c

Question 9

What is a producer (P)

Answer 9

organisations that take raw materials and process them into finished or semi processes goods

Question 10

What is a wholesaler(w)

Answer 10

buys in large bulks suppliers and sell them on in small quantities. These are in between manufactures and retailers

Question 11

What is a retailer (r)?

Answer 11

an organisation that sells goods and services to the general public or end user

Question 12

What is a customer?

Answer 12

end of the channel of distribution that deals with the product or service

Question 13

What factors influence the channel of distribution chosen by a business?

Answer 13

nature of product
size of business
available funds
output of products
growth
channel length
multi-channels
desired channel
speed and lead time
target market
personalisation

Question 14

What changes in distribution due to social trends?

Answer 14

online distribution

changing from product to service

Question 15

What are positives and negatives of online distribution?

Answer 15

+ niche product, low barriers to start up and low start up costs, quicker transactions
- no physical, safety