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1.3.4 Distribution - Coggle Diagram
1.3.4 Distribution
Direct Selling
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Direct mail
This is where suppliers send promotions through the post direct to customers invitiing them to buy products
Door-to-door selling
This is where salespeople visit households directly on spec, inviting people to buy products or services
Arguably, this method of distribution is in decline
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Direct response adverts
Some businesses place adverts in newspapers, magazines and on TV inviting people to buy goods or services
Shopping parties
Representatives organise parties and invite people to attend for an enjoyable social occasion while having the opportunity to buy products
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The main advantage is thta intermediaries are not required, so producers will make more profit
The main drawback is that people are unable to physically see the products until the have been purchased
Key Terms
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Breaking-bulk - Dividing a large quantity of goods received from a supplier before selling them on in smaller quantities to customers
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Retailer - A business that buys goods from manufacturers and wholesalers, and sells them in small quantities to consumers
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Retailers
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Independents
Shops like newsagents, grocers and specialists
Supermarkets
Large chain stores selling up to 20,000 lines
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Superstores
Very large stores selling a wide variety of goods, often very cheaply
Kiosks/street vendors
Small outlets, usually specialists, selling limited ranges
Market traders
Usually sole traders selling from market stalls in streets, squares and market halls
Distribution
The distribution of products, which refers to the location where consumers can buy products from
If businesses cannot get products in the right place at the right time, they are not likely to be successful
If products are not available in convenient locations, consumers may not have time to search for them
Distribution Channels
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One approach is to sell goods directly to consumers, but others involve using intermediaries
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