Distribution Channels

Question 1

Define the phrase ‘distribution channel’.

Answer 1

How businesses get their products to the customers

Question 2

What are the two types of distribution channels?

Answer 2

1. Direct
2. Indirect

Question 3

What is direct distribution?

Answer 3

Producers manufacture the products and then sell them directly to the customer

Question 4

What are the different ways of direct distribution?

Answer 4

Websites
Apps
Catalogues
Door to door sale
Telephone sales
Factory/farm shop
Party plan

Question 5

What is indirect distribution?

Answer 5

Producers sell the products they manufacture to wholesalers, retailers or a third party who then sell the products to customers

Question 6

What are the different ways of indirect distribution?

Answer 6

Producers sell to wholesalers who then sell to retailers who then sell to customers
Producers sell to retailers who then sell to customers
Producers sell to a specialist agency or third party who then sell to customers

Question 7

Define the term ‘B2B’.

Answer 7

Business selling to another business

Question 8

Define the term ‘B2C’.

Answer 8

Business selling to customers