Distribution Flashcards
(26 cards)
what is a distribution channel?
various intermediaries through which goods/services move from the manufacture to the end customer
what are the 3 common distribution channels?
four stage, three stage, and two stage
what does the 4 stage distribution channel consist of?
producer, wholesaler, retailer, consumer
what does a 3 stage distribution channel consist of?
producer, retailer, consumer
what does a 2 stage distribution channel consist of?
producer, consumer
what is the 4 stage distribution channel commonly used for?
groceries, clothing, and electronics
what stage doe the 3 stage distribution channel miss out?
the wholesaler stage, and instead the producers sells directly to the retailer
what is the 3 stage channel often used for?
products with high demand or where the cost of distribution is high
what type of product mainly uses a 3 stage distribution channel?
those with high profit margins
what is a wholesaler?
a business that buys large quantities of goods and then sells them in smaller amounts to retailers. they never sell to the end customer
what is a profit margin?
the percentage of the selling price which is profit
why is the 3 stage distribution channel mainly used for products with high profit margins?
because the manufacture can afford to sell directly to the retailer and still make profit
what stages does the 2 stage distribution channel eliminate?
the wholesaler and retailer as the manufacturer sells directly to the end consumer
what is the 2 stage distribution channel commonly used for?
products that are sold online or through a direct sales channel
what social trends have impacted the distribution channel?
the growth of e-commerce and the shift from product-based businesses to service- bases businesses
by understanginf changing trens what can businesses do?
adjust their distribution strategies to better meet the needs of customers and stay competitive in the marketplace
why has online distribution become increasingly more popular?
due to the convenience and accessibility it offers to consumers
what does drop-shipping allows businesses to do?
sell products without holding stock
what does selling directly from producer to consumer mean?
it reduces the cost and complexity of distribution, making it easier for businesses to sell online
what is an example of online distribution?
amazon
what is amazon known as?
a third party logistics provider (3PLs)
what does a 3PLs mean?
they provide businesses with the infrastructure and online marketplace which allows them to reach a wider audience and increase sales without having to invest in their distribution infrastructure
what does distribution for service-based businesses involve?
delivering services to customer directly
what is an example of a services- based business?
Uber
