Distrubution

• •Distribution is the process of getting the right product or service to the consumer in the right place.
• •The distribution channel is the route that products take from manufacturer to final customer
• 4 stage distribution channel manufacturer- wholesaler- retailer - consumer
• •In a 4 stage distribution channel a manufacturer or producer will sell in bulk to the wholesalers
• •Retailers then buy their stock from the wholesalers to put in their shops
• •Customers then visit the retailer’s shops to make a purchase
• •Wholesalers “break bulk” orders into smaller quantities that independent retailers (Like small local food shops) will buy
• benefit of a wholesaler is they can offer trade credit terms to the small retailer
• 3 stage distribution Manufacturer- Retailer - consumer
• •In a three stage distribution channel a manufacturer will sell their products direct to the retailer•The consumer will then buy from the retailer
• 2 stage distribution- manufacturer- consumer
• •In a two stage distribution channel products are bought by the consumer direct from the manufacturer
• •Direct selling means that products are sold directly from the manufacturer to the consumer