What is place in the context of distribution?
Availability of products for customers to make purchases
It includes physical place, availability, and visibility.
What is the channel of distribution?
The route taken by a product from the producer to the consumer
It involves various intermediaries such as wholesalers and retailers.
What are the main functions of wholesalers?
- Buy from manufacturers
- Sell to retailers
- Break bulk
- Repack goods
- Redistribute smaller quantities
- Store goods
- Provide delivery services
Wholesalers play a crucial role in the distribution process.
What services do retailers provide?
- Buy large quantities from manufacturers/wholesalers
- Sell small quantities to consumers (breaking-bulk)
- Sell in convenient locations
- Add value through services (e.g., packing, delivery, repair)
Retailers are essential in connecting consumers with products.
Name common types of retail outlets.
- Independents
- Supermarkets
- Department stores
- Multiples
- Online retailers
- Superstores
- Street vendors/kiosks
- Market traders
Each type serves different consumer needs and preferences.
What is a two-stage distribution?
Producers market products directly to consumers without intermediaries
Examples include banks, hairdressing, and restaurants.
What are some methods of direct marketing?
- Internet
- Direct mail
- Door-to-door selling
- Mail order catalogues
- Direct response adverts
- Shopping parties
- Telephone selling
These methods allow producers to reach consumers directly.
What factors should be considered when selecting a channel of distribution?
- Type of product
- Consumers
- Quantity to be delivered
- Location
- Legal constraints
- The market
Each factor influences the effectiveness of the distribution strategy.
What are some changes in distribution methods due to technological developments?
- Growth in online shopping
- Large US-style shopping malls
- Use of call centers
- Supermarkets extending product range and hours
- Shopping as a leisure activity
These changes reflect evolving consumer behaviors and preferences.
What does e-commerce refer to?
The use of electronic systems to sell goods and services
It includes both B2C and B2B transactions.
Define Business to Consumer (B2C).
Selling products/services directly between a business and end-users
B2C has expanded significantly with the rise of the Internet.
Define Business to Business (B2B).
Supportive enterprises offering goods/services that other businesses need
B2B companies target a different audience compared to B2C.
What are the benefits of online distribution for consumers?
- Cheaper prices
- 24/7 shopping
- Huge variety of choices
- Accessibility from anywhere with internet
Online shopping enhances consumer convenience and options.
What are the benefits of online distribution for businesses?
- Lower operating costs
- Lower start-up costs
- Automated transaction processing
- Less paper usage
- Online payment options
- Wider market reach
- 24/7 service
Online distribution can significantly reduce overhead and expand market access.
