Theme 1 Topic 17 - Distribution Flashcards
Define Place
The way in which a product or service is distributed from the producer to the consumer
What are two intermediaries?
Wholesalers and Retailers
Define Wholesalers
Buy the product from the manufacturer and sell them on to retailers
Define Retailers
The final stage in the process of distribution e.g. straight to the consumer
Define Distribution
How to get the product to the right place for consumers to make their purchase
Define Distribution Channels
The route taken by a product from the producer to the consumer
What are the five main channels of distribution?
Traditional physical channels, Direct to retailer, Be your own retailer, Direct online, Online retail
Define Direct Distribution
Where the provider of the product sells directly to the customer without a wholesaler or agent
Define Indirect Distribution
Where the provider of the product sells to the customer through an intermediary possibly supplied by a ‘middle-man’ e.g. an agent or wholesaler
Define Two Stage Distribution
Manufacturer to consumer
Define Three Stage Distribution
Manufacturer to retailer, then to consumer
Define Four Stage Distribution
Manufacturer to wholesaler to retailer, then consumer
What four things does the choice of distribution channel depend on?
Nature of product, Cost, Market, Control over the distribution of the product
What are three examples of ways in which the way goods and services are sold is subject to change?
Huge growth in online shopping, Building of out-of-town shopping centres, Supermarkets extending their opening hours
What are three advantages of online distribution to consumers?
Lower prices as lower costs, Consumers can shop 24/7, Huge amount of choice
