Distribution

Question 1

What is a distribution channel?

Answer 1

The route a product takes from the manufacturer/producer to the final consumer.

Question 2

What are the main distribution channels?

Answer 2

• Direct distribution
• Retailer channel
• Wholesaler channel
• Agent channel

Question 3

What is the direct distribution channel?

Answer 3

Manufacturer → Consumer. No intermediaries, often online sales or farm shops.

Question 4

What is the retailer channel?

Answer 4

Manufacturer → Retailer → Consumer. Common for clothing, electronics, supermarkets.

Question 5

What is the wholesaler channel?

Answer 5

Manufacturer → Wholesaler → Retailer → Consumer. Used for groceries, small shops, bulk purchases.

Question 6

What is the agent channel?

Answer 6

Manufacturer → Agent → Consumer (or retailer). Agents help sell on behalf of the manufacturer.

Question 7

What is a wholesaler?

Answer 7

A wholesaler buys in bulk from the manufacturer and sells in smaller quantities to retailers.

Question 8

What are the benefits of traditional retailing?

Answer 8

• Customers can see and try products before buying.
• Personal service and advice available.
• Immediate purchase and use (no delivery wait).
• Builds customer trust and brand presence.

Question 9

What are the benefits of online distribution?

Answer 9

• Wider geographical reach (global customers).
• Lower overhead costs (no need for physical stores).
• Convenience for consumers (24/7 access).
• Easier to collect customer data and personalise marketing.