marketing: place Flashcards
1
Q
channels of distribution
A
manufacturer -> wholesaler -> retailer -> consumer
2
Q
why businesses choose specific channels of distribution?
A
- finance
- image
- legal restrictions
- product
- stage of the product life cycle
- size
3
Q
direct selling
A
This is when the product goes directly from the manufacturer to the consumer.
4
Q
costs and benefits of direct selling
A
- cuts out the middle men which increases profits
- increased costs due to advertising, storing stock and administration
5
Q
wholesaler
A
The role of the wholesaler is to buy bulk orders from the manufacturer and divide them into smaller amounts to sell onto the retailer or consumer
6
Q
wholesaler costs and benefits
A
- manufacturer will lose some profit
- wholesaler takes on the risk and cost of storing stock
7
Q
retailer
A
A retailer sells goods to consumers often in smaller quantities than a wholesaler
8
Q
retailer costs and benefits
A
- manufacturer will lose some profit
- convenience - retailers are located close to customers
