Description should include distribution channels (paths used to deliver goods from their inception to the end user) for both online and brick-and-mortar businesses, including
- wholesalers (e.g., rack jobbers, drop shippers)
- retailers (e.g., brick-and-mortar, e-tailing)
- brokers
- agents
- other independent manufacturers’ representatives.
Description should also include classifying channels of distribution as direct or indirect, as well as examples of each type.
Process/Skill Questions:
- What are the cost factors involved in various channels?
- How does the distribution channel affect price?
- What is the difference between a direct and an indirect channel of distribution?
- Why are intermediaries used in the distribution of products/services?
- How is the distribution channel for consumer products and services different from the distribution channel for industrial products and services? What is an example path for each?
- How can a product be classified as both a consumer and an industrial product?
- How has digital marketing affected distribution?
- How does a company determine the most efficient method for distributing products?