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Chapter 14: Marketing mix (Channel 2: Using retailer as the only…
Chapter 14: Marketing mix
A distribution channel means a product is passed from the place of production to the customer
Channel 1: Direct to customer
ADV😊😊😊😊😊
Very simple
suitable for product ( Fruit, food straight from the farm)
lower price if sold direct to customer
Product sold by mail order or via the internet
DISADV😡😡😡😡
Customer could not go directly there to buy the product
not be suitable for products which cannot easily be sent by post
expensive to send product
Channel 2: Using retailer as the only intermediary
ADV😊😊😊😊😊
sells large quantities to retailers
Reduced distribution costs compared to selling directly to consumer
DISADV😡😡😡😡
No direct contact with customers
Price is often higher than 'direct selling'
Distribution channel 3: Using a wholesaler and retailer as intermediaries
ADV😊😊😊😊😊
Small retailer can purchase fresh products in small quantities from whole salers
Wholesalers may give credit to retail customers
Decrease storage cost for retailer
Wholesalers can give advice to small retailers
DISADV😡😡😡😡
more expensive for the small shop to buy
Wholesalers may not have full range of products to sell
Takes longer for fresh produce way from the small shops
Consumer price is often higher than 'direct selling'
Channel 4: Using an additional intermediary such as an agent
ADV😊😊😊😊😊
Manufactures may not know the best way to sell the product in other market
Agents select the most effective places in which to sell
DISADV😡😡😡😡
Producer has less control over the way product is sold to customers