Distribution

HideShow resource information
  • Created by: Izzie
  • Created on: 02-03-18 17:19
View mindmap
  • Distribution
    • The marketing mix refers to the processes used to encourage customers to buy, the 4 P's
      • Product, Price, Promotion, Place
    • The 4 stage distribution channel
      • The traditional method of distribution
      • Wholesalers buy large quantities of goods from a producer & store them
        • Retailers then place smaller orders for stock to sell to customers
    • The 3 stage distribution channel
      • 2 main variations
        • 1 producer, many retailers
          • E.g. Ford which supply Ford dealerships
          • Tightly controlled supply by the producer
          • Consumer faces restricted choice & possibly higher prices as competition is limited
        • 1 retailer, many producers
          • E.g. supermarkets, one retailer buys from many producers
          • Big retailers have more power than the producers so can drive down the price they pay in order to pass savings onto the customer
            • Not goood for producers who may struggle
    • The 2 stage distribution channel
      • Benefit from personal service
      • No 'middle-man' to pay
      • Some small businesses sell directly to the customer e.g. bakeries

Comments

No comments have yet been made

Similar Business resources:

See all Business resources »See all The Market resources »