Please enable JavaScript.
Coggle requires JavaScript to display documents.
3.3.3 Place (1. Different Channels (Producer - Consumer (Adv
Simple
…
3.3.3 Place
1. Different Channels
Producer - Consumer
Adv
- Simple
- Lower price
- Via mail, internet
- Ideal for agricultural products
Dis
- Impractical as customers may not live near factories
- Not all products can be sent by post
- Shipping expenses
-
-
-
E-commerce
Adv for Businesses
- Low cost promotion
- Global coverage
- Access many customers
- May not need shops
- Easier business to business purchases (B2B)
Dis for Businesses
- Setting up/updating costs
- No direct customer contact
- High competition
- Transport costs
Selecting Distribution Channels
- Type of product
- Technical (harder to use) product
- How often the product's bought
- How perishable it is
- Customer location
- Competitors' distribution methods
Distribution Channels
:pencil2: The means by which a product is passed from the producer to the consumer
:star: The more channels it goes through, the higher the costs
-