Distribution channels

Question 1

Distribution

Answer 1

Distribution is the process of getting the firm’s product’s to the market.

Question 2

Direct distribution

Answer 2

Direct is from the producer direct to customer. Considered a short distribution route.

Question 3

Modern distribution

Answer 3

producer to retailer to consumer. Longer distribution channel has to go through a number of intermediaries.

Question 4

Traditional distribution

Answer 4

Producer to wholesaler to retailer to consumer.

Question 5

Multi-channel distribution

Answer 5

As a business grows a firm might want to reach more customers through more channels, such as a physical store, online store, online market places and marketing through direct mail or another retailer.

Question 6

Factors that influence distribution

Answer 6

• Size of retailer (Bigger business is easier to use different distribution methods.)
• Type of product
• Quantity and frequency of sales
• Technology – online retail
• What are competition doing.

Question 7

Advantages of multi-channel distribution

Answer 7

• Reach same customers in new channels which may increase sales as it adds convenience
• Attract new customers, different customers use different channels

Question 8

disadvantages of multi-channel distribution

Answer 8

• Cannibalization of sales – Buyers who use shop may opt just to use web instead
• Can be a complex process as become difficult to manage stock etc. Could create poor communication systems.