Unit 29 Understanding Retailing Assignment 2 Pass 2

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Task 1 Distribution channel is a method a company uses to get its products to the market for customers. A traditional channel is to have the product come from supplier, through manufacturer, distributer, wholesaler and then retailer. Two different types of distribution channels exist: Direct And Indirect A Direct distribution channel is where a company sells its product or service directly to the customers. Direct channels have greatly increased the use of direct channels, while many years ago; direct channels were not popular. Using direct distribution channels cuts out the need of a middle man. There are two types of direct distribution channels. There are “selling agents”, who work for the company and sell the company’s product(s) to customers through mail-order, storefronts or other means. The second is to sell things over the internet because it is globally available to customers. Now, when you want to book a flight nowadays all you have to do is log onto your pc, tablet or mobile and access the internet, log onto the website and select your destination, then finally accept the cost. This is processed almost immediately and you can either get a ticket posted to you, you can print off your ticket or you cannot do either and just sign in when you get to the airport at the help desk. E.g. “easy jet” has a stall at the airport with their sales reps there to help you. An Indirect distribution channel is where a company doesn’t sell its goods directly to a customer. The suppliers and manufacturers are quite early on in the supply chain so they are more likely to use indirect channels to sell their goods. Although because of the internet, direct distribution has become very popular and prevalent, depending on the industry and product. Potatoes are perishable goods and they have a pretty early use by date, commonly misunderstood. They will need to be grown

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