unit 2 distribution Flashcards
distribution
where the product are sold
towns city centres
now its usually the out of shopping centre and retail parks where there is free parking
distribution channel
how does it reach the customers
physical distribution
most common but decline thanks to the digital d.
via shops usually tangible objects
producer —–=- customers
keeps all the money common with small local stores e.g bakeries
deals with every customer
if it sells in bulks its best to have small amount mof customers
producer——–retailer———-customer
P sells to the R and then to the customers
common withe electrical goods e.g phones
producer ———–wholesaler————-retailer——-customers
producer gives large quantities of good
wholesalers break the bulk and sell it in smaller proportions to the retailers
wholesaler may do buy now pay later
regional distribution centre
ware house own by retailer used to store products for the retailers sells them to m&s etc.
producer sends goods to the RDC who organises them and sells them in smaller quantities to shops
digital distribution
no physical exchange .
music books movies that you can download at a price
digital distribution advantages
24/7
quick
cheaper no delivery
digital distribution disadvantage
not all goods can be digital e.g. food
not all customers have the internet
new staff may be required
distribution future
more digital distribution
businesses must keep up with technology