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Business - Theme 1 > Distribution > Flashcards

Flashcards in Distribution Deck (15)
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1
Q

What is distribution?

A

getting the products to the right place for consumers and at the right time

2
Q

What is distribution channels?

A

the route taken by the product as it moves from the producer to the customer

3
Q

What are the different methods of distribution?

A

Traditional
Direct
Modern
5-step (agent)

4
Q

What is an agent?

A

facilitates the sale between and a wholesaler, especially in foreign markets. they receive commission and renown for specialist knowledge

5
Q

What is the direct route?

A

p-c

6
Q

What is the modern route?

A

p-r-c

7
Q

What is the traditional route?

A

p-w-r-c

8
Q

What is the agent route?

A

p-a-w-r-c

9
Q

What is a producer (P)

A

organisations that take raw materials and process them into finished or semi processes goods

10
Q

What is a wholesaler(w)

A

buys in large bulks suppliers and sell them on in small quantities. These are in between manufactures and retailers

11
Q

What is a retailer (r)?

A

an organisation that sells goods and services to the general public or end user

12
Q

What is a customer?

A

end of the channel of distribution that deals with the product or service

13
Q

What factors influence the channel of distribution chosen by a business?

A
nature of product
size of business
available funds
output of products
growth
channel length
multi-channels
desired channel
speed and lead time
target market
personalisation
14
Q

What changes in distribution due to social trends?

A

online distribution

changing from product to service

15
Q

What are positives and negatives of online distribution?

A

+ niche product, low barriers to start up and low start up costs, quicker transactions
- no physical, safety