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Distribution Channels (Distribution channel 3 (Disadvantages: (May be …
Distribution Channels
Distribution channel 3
Involves using a wholesaler, who buy products from the manufacturers in large quantities and divide up the inventory into much smaller amounts for retailers to purchase
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Distribution channel 4
When products are exported, manufacturers would sometimes use agents in the other countries
Advantages
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Agents will be aware of the location conditions and will be in the best position to select the most effective places to sell
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Methods of distribution
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Discount stores
Retail stores offering a wide range of products, many branded products at discount prices
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Supermarket
Retail grocery store with daily produce, fresh meat, packaged food and non-food departments
Mail order
Customers look through a catalogue, magazine, telephone or internet and order by post
Internet/ e-commerce
Consumers view the goods on the business’s website and the order on the internet or possibly by telephone or mail
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Independent retailers
Single shop
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Offer local, personalized service
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