Please enable JavaScript.
Coggle requires JavaScript to display documents.
Distributions channels (Using the retailer as the only intermediary…
Distributions channels
Using the retailer as the only intermediary
Advantages
reduce distribution costs
Sells large quantities to retailers
Disadvantages
price is often higher
No direct contact with customers
Direct to customer
Advantages
suitable for some products
Lower price ( wholesaler/retailer)
Simple
can be sold by mail or via the internet
Disadvantages
Expensive to transport the product
not suitable for some product
impractical for most product
is the means by which a product is passed from the place of production to the customer
Using a whole saler and retailer as intermediaries
Advantages
retail customer can take the goods straightaway and pay at a later date
Wholesalers can save on transport costs
Retailers can purchase fresh products
Wholesaler can give advice to retailers and manufacturers
wholesaler saves storage space => reduce storage cost
Disadvantages
Products may not be very fresh due to time taken to be trasported
Wholesalers may be a long way from the small shops
Wholesalers may not have the full range of products
Consumer price is often higher than 'direct selling'
Maybe more expensive than buying directly from manufacturer
Using an aditionall intermediary such as an agent
Advantages
Manufactures may not know the market in that region
Agents will know alot about that market
Disadvantages
Producer has less control over the way the product is sold to customers