Distribution Channels

Flashcards covering key concepts related to distribution channels, including their definition, types, and the roles of key players like manufacturers, wholesalers, and retailers.

What is a distribution channel?

The route to market that a product takes from producers to the final customer.

Describe the flow of products in a traditional (long) distribution channel.

Manufacturer -> Wholesaler -> Retailer -> Consumer.

What is the typical flow of products in a modern (medium length) distribution channel?

Manufacturer -> Retailer -> Consumer.

Which distribution channel involves the product going directly from the manufacturer to the consumer?

Direct (short) distribution channel.

Who are organisations that process raw materials or components into finished or semi-processed goods?

Manufacturers or Producers.

What is the primary role of a wholesaler?

They buy large quantities of supplies from producers and sell them on in smaller quantities, acting as an intermediary.

Who is an organisation that sells goods or services to the general public or end user?

A Retailer.