"Distribution" (Theme 1: A level Business Edexcel)
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Course
Unit 1 - Marketing and people
Institution
PEARSON (PEARSON)
In this lecture notes you will find in depth notes for the topic "Distribution" Theme 1 of Edexcel A level business which is called marketing and people.The textbook "Edexcel AS/A level BUSINESS, 5th edition, Pearson" is referenced in these lecture notes. They are really well written and simple to ...
LESSON 11
.Distribution
An important market activity is the distribution of products, which refers to the location where
consumers can buy products from.
.Distribution channels
It’s the route taken by a product from the producer to the customer.
DIRECT SELLING:
Dentists, restaurants, manufacturers use it as well. Some methods are
- The internet (selling online)
- Direct mail (suppliers send promotions)
- Door to door selling
- Mail order catalogues
- Direct response adverts
- Shopping parties (representatives organized parties where you can also buy)
- Telephone selling
Main advantage is that intermediaries are not required, so producers are able to make more
profit. Producers can reach customers who do not like going to shops.
Main drawback is that with some methods people cannot physically see the products until
they have been purchased. Some people object to direct mail, door-to-door salespeople and
unwanted telephone calls.
.Retailing
Most distribution channels use retailers and these are businesses that buy goods and sell
them straight to the customers.
- They buy large quantities from manufacturers and wholesalers, and sell
small quantities to customers⇒called breaking-bulk
- They sell in locations that are convenient to consumers
- They may add value to products by providing other services
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