Place Flashcards
Place
where products and services are sold / how they get to the customers
type one : producer
include the channel
direct channel = selling
small businesses can manage customers
helps make more profit : most profitable for producer
type 2 - producer retailer customer
more sales
retailers are good at promotion- don’t need it spend money on marketing
type 3 producer -wholesaler /regional distribution -centre retailer -consumer
large storage centre able to take large deliveries
whoeksalers break bulk buying in large quantities and then selling smaller amounts to retailers
don’t need to make as many trips to mult stores
why involve wholesalers?
maintain high sale volume
less money spent in marketing
reduced distribution cost , more exposure for business
why do some choose to sell online?
websites are quicker and cheaper to set up compared to a physical store
some choose to sell in person
personalised service
can display items
can create an experience
encourages impulse purchases
RDC
owned by retailers to store products they will later sell in their stores
why do retailers invest in rdcs
can buy directly from producers = cheaper than wholesalers
Digital distribution
distribution of goods digitally by downloading from a website or app i.e song purchased from apple music
games , apps, software, films,textbooks, audiobooks, banking services
advantages of buying online
SAWCP
available instantly
no postage & packaging cost
eliminates co2 emissions caused by delivery
can sell worldwide = more pot customers
doesn’t have to store goods = decreasing costs
disadvantages of digital d
not suitable for all products ( food cannnot be downloaded )
internet connection
easier illegally download for free
costly to set up - secure. website
all businesses can sell throughout world - more competition
what are some disadvantages of choosing to sell in person?
if sold to wrong retailer ; loss control less profit , bad image
