d) Place

• Explain the 4 parties involved in distribution

  The manufacturer is the creator of goods in large quantities

  The wholesalers is the link between the manufacturer and the retailer. They buy in bulk and transport the good to warehouses for storage. Useful for retailers who do not have large storage facilities

  The retailer is the final seller of goods to the consumer, they make the goods available for the consumer at a convenient place

  The consumer is the final user and buys small usable amounts of products and replace them frequently.
• Give 3 reasons for the choice of channel of distribution.

  The choice depends on the type of good as for a very specialised product the consumer and manufacturer are likely to b in direct contact

  It also depends on the value of goods as the more expensive the goods are the less places that will sell it

  The final dependent factor is the life span of the goods as if the goods are perishable it must be distributed quickly.
• Explain the 3 channels of distribution

  The first channel of distribution is traditional, it goes from the manufacturer to the wholesaler to the retailer to the consumer

  The second channel is modern and it goes from the manufacturer to the retailer to the consumer

  The third and final channel is direct, from the manufacturer to the consumer
• Give 2 reasons for a changing trend in distribution.

  The first reason for changing trends is shopping via the internet is very popular especially with its increased security of payment methods and more customers can shop directly with manufacturers

  The second reason is it is becoming increasingly common for large retailers act as their own wholesalers and buy their goods directly from the manufacturers, this allows the supermarkets to pass on the benefits to the customers through the form of lower prices.