Channels of Distribution Mr. Poole Business Studies.

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Presentation transcript:

Channels of Distribution Mr. Poole Business Studies

Channels ProducerManufacturerRetailerConsumer Mr. Poole Business Studies

Copy page 172 of your text book into your copy. New studies in business textbook. Mr. Poole Business Studies

The Different Roles in Distribution Producer- makes (or grows) the goods/ raw materials, e.g. Beef farmers, fisherman. Manufacturer- takes the raw materials and turns it into the finished goods, e.g. Turning milk into cheese or butter. Mr. Poole Business Studies

The Different Roles in Distribution Wholesaler- takes the large volume of goods from the manufacturer and sells in smaller quantities to the retailer/shop. Sometimes the wholesaler is not part of the channel of distribution. Retailer- buys from the wholesaler or manufacturer (or even the producer) and sells to the consumer. Mr. Poole Business Studies

The Retailer The retailer sells directly to the public. There are many different types of retailers Sole trader Supermarket Department store Voluntary group Shopping centre Mail order firm Franchise Mr. Poole Business Studies

Other types of Retailers Street stall /market stall Retail park Shopping channels Internet Vending machines Door-to-door salesman Mobile shop e.g. Ice cream van Discount store e.g. €2 store Mr. Poole Business Studies

The retailer’s job Buys in bulk from the wholesaler Provides the wholesaler with information about products. Sells in small quantities to the consumer Offers an after sales service May sometimes give credit Deal with consumer complaints under consumer law. Mr. Poole Business Studies

Modern developments in retailing Bar codes Visa / debit card Home delivery Self service checkout e.g. Tesco Laser scanning with debit card Visa card 3 G card Paypal Mr. Poole Business Studies