Channels of Distribution

1. Channels of Distribution Mr. Poole Business Studies

2. Channels Mr. Poole Business Studies

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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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