Session 18 - channels of distribution Flashcards
What are the 4 P’s in the marketing mix of business
Product, Price, Place, Promotion
What does the place of the 4 P’s mean
Distribution
What is a channel of distribution
Route taken by a product from producer to consumer
What are the 4 contributors to channels of distribution, and 1 add-on
Producer, wholesaler, retailer, consumer, agent
What is the producer in terms of channels of distribution
Business that makes the good using raw materials
What is the wholesaler in terms of channels of distribution
Business that buys from the producer in bulk and sells in smaller quantities to retailers (B2B)
What is the retailer in terms of channels of distribution
Business who sells products/services to consumers
What is the consumer in terms of channels of distribution
The end user of the product
What is the agent in terms of channels of distribution
Third party intermediary which a company can use to sell their products for them
What are the 4 channels of distribution
Wholesale channel
Retail channel
Direct channel
Agent channel
What is the wholesale channel of distribution
Producer - wholesaler - retailer - consumer
What is the benefit of wholesalers
Can add trade credit terms to smaller retailers and put their products in shops
What is the retail channel of distribution
Producer - retailer - consumer
What is the benefit of the retail channel
Larger producers can cut out the middle man and sell directly to retailers
What is the direct channel
Producer - consumer
