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Marketing Mix and Strategy

Distribution

  • 3 things to know
  • Paper 1 and Paper 3

Overview

Direct and indirect distribution, wholesalers, retailers and agents, the effect of channel length, online distribution and the social trends behind it, the shift from product to service, and multi-channel distribution.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

Distinguish direct from indirect distribution.

Evaluation

What advantages does online distribution give a producer?

Key term

Give two examples of the shift from product to service distribution.

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is a distribution channel?

    Model answer

    The route or pathway through which a product passes from the producer to the final consumer.

  2. 2

    What does direct distribution involve?

    Model answer

    Selling products straight from producer to consumer with no intermediaries.

  3. 3

    How does indirect distribution differ from direct distribution?

    Model answer

    Indirect distribution uses one or more intermediaries such as wholesalers or retailers between producer and consumer, whereas direct distribution involves no intermediaries.

  4. 4

    Define the role of a wholesaler in a distribution channel.

    Model answer

    An intermediary that buys in bulk from producers and sells in smaller quantities to retailers.

  5. 5

    What is a retailer?

    Model answer

    An intermediary that sells products directly to the final consumer.

  6. 6

    What distinguishes an agent or broker from other intermediaries?

    Model answer

    An agent or broker arranges transactions between buyers and sellers without taking ownership of the goods.

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