distribution - theme 1.3 (book3) Flashcards
distribution is the _____ of getting the firm’s products to the _____ ______.
distribution is the process of getting the firm’s products to the end user.
distribution _______ are the ______ to market that a product takes from ______ to the ______ customer.
distribution channels are the routes to the market that a product takes from producers to the final customer.
a short/direct distribution channel is where the _____ sells _____ to the _____ through a retailer.
a short/direct distribution channel is where the producers sells directly to the customer through a retailer.
a long distribution channel is where there is more than one _______ person between the ______ and customer.
a long distribution channel is where there is more than one middle person between the producer and customer.
what is a wholesalers job?
buy in bulk from producers.
what is a retailers job?
sell goods to the end buyers.
what does the choice of distribution channel depend on?
nature of product, the market, the cost, amount of control, reliability of suppliers.
changes in distribution to reflect social trends?
growth of online shopping, supermarkets extending their product ranges.
online _________ or ________ is the buying and selling of goods and services through the use of _______ systems.
online distribution or e-commerce is the buying and selling of goods and services through the use of electronic systems.
benefits of online distribution?
- prices tend to be lower as online retailers have fixed costs
- consumers can shop 24/7
- wider choice of products
- easier to compare prices
- lower start up costs for business
- access to the global market
drawbacks of online distribution?
- risk of poor service
- risk of internet fraud
- deliveries can be stolen
- expense of returned goods
- delivery costs for postage
- security problems + technical problems can occur
- increased competition
what is short/direct distribution?
producer to consumer
what are the two examples of traditional/long distribution?
producer - wholesaler - retailer - consumer
producer - retailer - consumer