distribution - types of distribution intermediary
Introduction
There is a variety of intermediaries that may get involved before a product gets from the original producer to the final user. These are described briefly below:
Retailers
Retailers operate outlets that trade directly with household customers. Retailers can be classified in several ways:
• Type of goods being sold( e.g. clothes, grocery, furniture)
• Type of service (e.g. self-service, counter-service)
• Size (e.g. corner shop; superstore)
• Ownership (e.g. privately-owned independent; public-quoted retail
group
• Location (e.g. rural, city-centre, out-of-town)
• Brand (e.g. nationwide retail brands; local one-shop name)
Wholesalers
Wholesalers stock a range of products from several producers. The role of the wholesaler is to sell onto retailers. Wholesalers usually specialise in particular products.
Distributors and dealers
Distributors or dealers have a similar role to wholesalers – that of taking products from producers and selling them on. However, they often sell onto the end customer rather than a retailer. They also usually have a much narrower product range. Distributors and dealers are often involved in providing after-sales service.
Franchises
Franchises are independent businesses that operate a branded product (usually a service) in exchange for a licence fee and a share of sales.
Agents
Agents sell the products and services of producers in return for a commission (a percentage of the sales revenues)
© Tutor2u Limited All Rights Reserved. All materials published on www.tutor2u.net are protected by copyright and may not be reproduced in part or in whole, for whatever reason, without the prior written permission of tutor2u. The use of tutor2u content for commercial gain of any kind is strictly forbidden. We reserve the right to take legal action against any party or parties found to have breached our copyright. Damages and other remedies are available to us in respect of copyright infringements. About tutor2u tutor2u is a leading publisher of e-learning resources for Economics, Business, Politics and related subjects. Our materials are used by over 3,500 schools and colleges in the UK and in educational institutions in over 85 other countries. tutor2u was named Online Learning Resource of the Year at the prestigious BETT Show - the World's leading educational show. |
Privacy & terms of Use |
Contact us |
Teacher Newsletters & Subject Blogs |
