1.3.4 Distribution

Question 1

What is the main objective of distribution?

Answer 1

To make products available in the right place at the right time in the right quantities

Question 2

What is a distribution channel?

Answer 2

A chain of business’ or intermediaries that a good/service passes until it reaches the final buyer

Question 3

What is an intermediary?

Answer 3

Each separate party/stage in a distribution channel

Question 4

What’s a 4 stage channel?

Answer 4

Producer -> wholesaler -> retailer -> customer
(Producer sells in bulk to wholesaler, retailer buys stock and sells to customer

Question 5

Whats indirect distribution

Answer 5

producer -> retailer -> customer

Question 6

What is direct distribution

Answer 6

Producer-> customer

Question 7

What is the role of a distributor?

Answer 7

They purchase products from manufacturers and re sell them to retailers (cressco). They hold stock

Question 8

What are retailers?

Answer 8

The final step in the chain who deal with customers

Question 9

What are the 6 various kinds of retailer?

Answer 9

1-Multiples-chain of shops owned by single company

2-Specialist chain-eg) perfume, fashion

3-Department stores (eg John
Lewis)

4-Convenience stores (spa, costcutter)

5-Independents (shop run by an owner)
6-Franchises

Question 10

What are the 2 advantages of retailers?

Answer 10

-They create convenience for customers
-They hold stock

Question 11

Give an advantage and a disadvantage of direct distribution

Answer 11

A- complete control over supply chain so can control quality and price
D-high costs to store and transport goods

Question 12

Give an advantage and a disadvantage of indirect distribution

Answer 12

A- can access a larger market
D-Loss of control of the quality, time to be delivered and the promotion

Question 13

What reasons could there be do use indirect distribution
(Give 2)

Answer 13

-Consumers may live too far to directly be reached
-the producers may lack retailing expertise