Understanding Distribution Channels in Business

Place

Location and distribution channel for products.

Distribution

Process of delivering products to the market.

Distribution Channels

Routes products take from producers to customers.

Short Distribution Channels

Direct sales from producer to customer or retailer.

Long Distribution Channels

Involves multiple intermediaries between producer and customer.

Direct Selling

Producers sell directly to final consumers.

Retailers

Businesses selling products to the general public.

Wholesalers

Buy large quantities and sell in smaller amounts.

E-commerce

Selling products online via the internet.

Multi-channel Distribution

Combination of various distribution methods used.

Distribution Decisions

Factors influencing how products are distributed.

Type of Product

Characteristics of a product affecting distribution choice.

Market Access

Ensuring customers can easily reach products.

Geographical Location

Distance of target market from the firm.

Cost of Distribution

Expense impacting a firm's profit margin.

Quantity and Frequency

Delivery volume affecting distribution efficiency.

Physical Market

Location where buyers and sellers meet face-to-face.

Virtual Location

Online spaces for product availability.

Impact of Distribution Channels

Effects on business and stakeholders from choices made.

Food Trucks Trend

Growing popularity in Asia and India markets.

Brand Image

Perception of a brand affected by availability.

Coca Cola Distribution

Syrup shipped to UK, product made locally.

High Street Accessibility

Importance of transport access for customer shopping.

Cost Effectiveness

Method must minimize expenses while achieving goals.

Degree of Control

Businesses limit product spread to protect brand.

Distribution Channels

Paths through which products reach consumers.

Marketing Mix

Combination of product, price, promotion, and place.

Target Market

Specific group businesses aim to reach.

Competitive Advantage

Edge over competitors in the market.

Social Trends

Current societal behaviors influencing consumer choices.

Technological Trends

Advancements affecting distribution methods and efficiency.

Multi-Channel Distribution

Using multiple methods to sell products.

Intermediaries

Entities between manufacturer and consumer in distribution.

Distribution Decisions

Factors influencing how products are delivered.

Place Definition

Location and method of selling products.

Marketplace

Where buyers and sellers exchange goods.

Brand Identity

Image and perception of a brand in consumers' minds.

Super-Premium Brand

High-end product positioned for affluent consumers.

Prime Selling Space

Desirable retail locations for product placement.

Direct Selling

Selling products directly to consumers without intermediaries.

Wholesaler

Middleman purchasing in bulk to sell to retailers.

Retailer

Business selling products directly to consumers.

Consumer

End user of products or services.

Vending Machines

Automated machines selling products in various locations.

Stock Ordering Methods

Processes for retailers to manage inventory efficiently.

Discounts for Retailers

Price reductions offered to encourage product placement.

Direct supply relationship

Manufacturer sells directly to retailers, reducing costs.

Wholesaler

Intermediary buying in bulk, selling smaller quantities.

Breaking bulk

Wholesaler divides large quantities for retailers.

Purchasing economy of scale

Cost savings from buying in large quantities.

Direct selling

Manufacturer sells directly to consumers, bypassing retailers.

B2C (Business to Consumer)

Direct sales from businesses to end consumers.

E-commerce

Online selling platform for businesses and consumers.

Click and collect

Online purchase with in-store pickup option.

Internet marketing

Promoting products through online channels.

Multi-channel distribution

Using various channels to reach consumers.

EPOS systems

Electronic Point of Sale for inventory management.

Online sales growth

Significant increase in internet sales annually.

Direct manufacturer profits

Higher profits from selling directly to consumers.

Retailer dominance

Large retailers increasingly control market distribution.

Traditional distribution chain

Manufacturer-wholesaler-retailer-consumer model.

Internet sales in UK

Over £7 billion in online sales during November 2014.

Auction sites

Platforms like eBay for selling products online.

Consumer concerns

Fraud and non-delivery issues in online shopping.

Distribution centres

Facilities for storing and distributing products.

Online music sales

More downloads sold than CDs in stores.

Small business competition

E-commerce enables small businesses to compete globally.

Brand values

Core principles guiding a company's branding strategy.