Distribution Channels Flashcards
What is a distribution channel?
How the product or service gets from the producer to the consumer.
What is a producer?
The party that manufactures the product or service.
What are wholesalers?
An intermediary between the producer and consumer.
What are retailers?
The final part of the distribution channel where the product is sold to the consumer.
What are tele-sales?
Direct selling using telephone contact.
What is e-commerce?
Using the internet to promote and sell a good or service.
What is m-commerce?
Using smart phone and mobile phone technology to promote and sell a product or service.
What is direct marketing?
When a business promotes and sells products direct to the customer without using any other businesses as part of the distribution channel.
Visualise a diagram of zero level distribution channel.
Producer –> Consumer
zero intermediaries
Visualise a diagram of a one level distribution channel.
Producer –> Retailer (e.g Tesco) –> Consumer (one intermediaries)
Visualise a diagram of a two level distribution channel.
Producer –> Wholesaler –> Retailer –> Consumer ( two intermediaries)
