Place Flashcards
1
Q
What are the three channels of distribution
A
- Manufacturer to consumer
- Manufacturer to retailer to consumer
- manufacture to wholesaler to retailer to customer
2
Q
Explain manufacturer to consumer
A
3
Q
Advantages of manufacturer to consumer distribution
A
- Producer doesn’t have to share any profit to a wholesaler or retailer therefore producer will gain more sales revenue to gain more profit
- good for phones that don’t have a lot of customers or firms selling bespoke items eg custom wedding dresses
4
Q
Disadvantages of manufacturer to consumer
A
- Higher cost without the support of other channels
- Higher cost of delivery and the promotion meaning decrease in profits as a result of higher costs
5
Q
Explain Manufacturer to retailer to consumer
A
This is when the manufacturer sells directly to a retailer who sells to the consumer
6
Q
Advantages of Manufacturer to retailer to consumer
A
- Retailers can help with promotion to increase reach and encourage more people to buy the product
- reatalier has product knowledge so can help customers out with good customer service
- product will be sold in many places thanks to exposure from retailers
7
Q
Disadvantages of Manufacturer to retailer to consumer
A
- Retailers may mark up the price meaning they make more profit than manufacturers
- May be harder to convince a retailer to stock your products if you are a new firm
8
Q
Explain manufacturer to wholesaler to retailer to customer
A
- Manufacturers sell to
