9 marketing_distribution

9 marketing_distribution - tutor2u GCSE Business Studies...

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tutor2u GCSE Business Studies Distribution Distribution is how the business gets its products to the customers. It does this through four main distribution channels: f Wholesalers f Distributors / Sales Agents f Retailers f Direct Wholesalers “break bulk” – they buy in large quantities from manufacturers and then break them into smaller quantities to sell to retailers. This reduces transport costs to the manufacturer (few journeys to wholesaler rather than many journeys to retailers) and retailers can order in smaller amounts from wholesalers. Agents provide a link between sellers and buyers. They are not employed by the company but sell the products or services for a commission. The best examples of an agent are a travel agent or an estate agent. For instance the travel agent will sell travel companies holidays to potential holidaymakers and take a cut of the sales revenue. Some businesses miss out the wholesaler, especially large multiples such as supermarkets. They can order directly from the producer and then use their own system of distribution. The advantage for a
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This note was uploaded on 05/20/2010 for the course MARKETING Marketing taught by Professor N/a during the Spring '10 term at Open Uni..

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9 marketing_distribution - tutor2u GCSE Business Studies...

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