distribution Flashcards
distribution
the process in getting the right product or service to the consumer in the right place
one of the 4 p’s (place)
manufacturer to consumer
two stage
direct marketing
do not use factory outlet or agent
direct service e.g solicitor
manufacturer - retailer - consumer
three stages e.g electrical goods
retailers spread over country allowing manufacturer to reach sales volume
most mass market products
man - whole - retailer - consumer
four stage e.g food and sweets
manufacturers sell in large quantities
added benefit of being able to offer trade credit to retailer
man - agent - whole - retailer - consumer
when selling in another country
agent will speak language, understand regulations, importing and tax
makes supply chain longer which can increase final price to consumer
online distribution
niche products can reach wide audience low barriers to entry low cost can cater to far greater geographical dispersed market many transactions happen online