Edexcel-Distribution

Question 1

Distribution

Answer 1

To make products available in the right place,quantities and time

Question 2

What is distribution influenced by

Answer 2

Target market segment

Question 3

Distribution channel

Answer 3

Moves products from production to final consumption

Question 4

Distribution channel purpose

Answer 4

Link between production and consumption
Gather market information
Communicate promotional offers

Question 5

Retailers

Answer 5

Final step
Focus on consumers
Deal directly with consumers

Question 6

Advantages of retailers

Answer 6

Convenience for customers
Retailers choose final price and have more control over their products.
UK wide reach to consumers

Question 7

E.g. of retailers

Answer 7

department store
convenience store
Franchises

Question 8

Wholesaler

Answer 8

Buy large quantities at low prices from producers and sell smaller quantities with a profit margin to retailer

Question 9

Advantages of wholesaler

Answer 9

Reduce transport costs
Retailers order in small amounts

Question 10

E.g. of wholesalers

Answer 10

Newsagent

Question 11

Distributor

Answer 11

Distribute products and serve as local sales point. Holds stock and offer many products.

Question 12

E.g. of distributor

Answer 12

Building supplies

Question 13

Agent

Answer 13

specialist type of distributor, does not hold stock

Question 14

E.g. Of agent

Answer 14

Travel and insurance

Question 15

Direct distribution

Answer 15

Where a producer and consumer deal directly with eachother

Question 16

Advantages of direct distribution

Answer 16

Total control over products
Lower overhead costs

Question 17

Disadvantages of direct distribution

Answer 17

Limited coverage
Limited consumer choice

Question 18

Indirect distribution

Answer 18

Involves the use of intermediaries between producer and consumer

Question 19

Advantages of indirect distribution

Answer 19

Customers may live too far away
Better use of resources elsewhere

Question 20

Disadvantages of indirect distribution

Answer 20

Limited control over products
Cost of product increases

Question 21

Multi channel distribution

Answer 21

Involves a business using more than one type of distribution channel

Question 22

Multi channel distribution Advantages

Answer 22

More target markets reached
Enable high revenues
More convenience for customers

Question 23

Multi channel distribution disadvantages

Answer 23

Complex to manage
Pricing strategy can be confused
Competing with other competitors

Question 24

Key changes in reflecting social trends

Answer 24

Sales of services via mobile
Mass customisation
Ageing population with disposable income

Question 25

Online distribution

Answer 25

Allows consumers to directly purchase through online platforms

Question 26

Online distribution advantages

Answer 26

Lower costs
Wider reach of consumers

Question 27

Online distribution disadvantages

Answer 27

Increased competition
Consumers become dependent on only online platforms

Question 28

Changing from product to service Aspects that need to be considered

Answer 28

Clear understanding of consumers wants and needs
Focus on providing value to consumers

Question 29

Changing from product to service advantages

Answer 29

Flexibility
Wider choice of products

Question 30

Changing from product to service disadvantages

Answer 30

Expensive
Time consuming