Unit 12 - Distribution Flashcards
Which of the 4 ps is this
Place
Def: agent or broker
An intermediary that brings together buyers and sellers
Def: breaking bulk
Dividing a large quantity of goods received from a supplier before selling them on in smaller quantities to consumers
Def: direct selling
Producers selling their products directly to consumers
Def: distribution
The delivery of goods from the producer to the consumer
Def: distribution channel
The route taken by a product directly to consumers
Def: e commerce
The use of an electronic system to sell goods
Def: intermediaries
Links between the producer and the consumer
Def: retailer
A business that buys goods from manufacturers and wholesalers and sell them in small quantities to consumers
Def: Wholesaler
A. Business that buys goods from manufacturers and sells them in smaller quantities to retailers
What do distribution channels look like
- consumer
Manufacturer - retailers - consumer
- wholesaler - retailer - consumer
- agent/broker - wholesaler - retailer - consumer
Direct selling examples and types
Dentist hairdresser restaurants
Internet
Telephone
Door to door
How to choose the appropriate distribution channel + 3 main aspects
Most services are direct selling
FMCG can’t be direct as wholesalers or retailers need to break bulk
High quality think about image so don’t sell in supermarkets
Cost- cheapest so prefer direct
The market- mass market likely to use intermediaries
Control- some think its important to have complete control so direct
Changes to distribution depending on trends
Online
Shopping malls
Supermarkets extending hours and options
Ways of selling 3
Online - new trend
Business to consumer (B2C)
Business to business (B2B)
