Question

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. Answer the following questions.
1. What is the idea of distribution?
2. What are the elements of a distribution channel?
3. What is the difference between the direct and indirect distribution channels?
4. What are the functions of retailers?
5. What are the functions of wholesalers?
6. Describe the traditional channel of distribution.
7. How are industrial products distributed?
8. What are the functions of agent middlemen? How are they paid?
9. What factors does the choice of a particular channel of distribution depend on?
10. What products are distributed intensively / selectively / exclusively?

DISTRIBUTION
The idea of distribution is getting product from the producer to the customer, who is usually called the end user or ultimate consumer, in the quickest and most efficient way. This goal is achieved through marketing or distribution channels that link the producer and the user with the aid of middlemen or marketing intermediaries. Middlemen are concerned with the transfer of ownership of products. A merchant middleman, often called a merchant, is a person who actually takes title to products by buying them. A functional middleman, on the other hand, negotiates purchases or sales, or both, but does not take title to the products.
Consumer products may go through various channels of distribution:

1. Producer (sells directly to) → end users via own sales force.

This channel is often called the direct channel. Practically all services, but very few consumer goods are distributed through the direct channel.

2. Producer →retailers → end users.

A retailer is a middleman who buys from producers or other middlemen and sells to consumers. Producers sell directly to retailers when retailers can buy in large quantities.

3. Producer → wholesalers → retailers → end users.

This indirect channel is known as the traditional channel, because most consumer goods are directed through wholesalers to retailers. A wholesaler is a middleman who sells products to other firms. These firms may be retailers, industrial users or other wholesalers.

4. Producer → agents →wholesalers → retailers → end users.

This indirect channel is used for inexpensive, frequently purchased products that are sold through thousands of outlets to millions of ultimate consumers.
Industrial products are sold either directly to industrial users or indirectly through agent middlemen, who serve as independent intermediaries between the producer and industrial users. Agents usually represent sellers and receive commissions, that is a percentage of the value of the goods they sell.
The choice of a particular distribution channel depends on a number of relevant factors including the manufacturer’s production capability and marketing resources, the target market and the product itself. After evaluating all these factors the producer can choose a particular intensity of market coverage. Using intensive distribution the producer saturates the market by selling to any middlemen who are willing to stock and sell the product. Many convenience goods are distributed intensively. Through selective distribution manufacturer uses only a portion of outlets in each geographic area, granting franchises for the sale of goods or services. Exclusive distribution is usually limited to a single retail outlet in each geographic area, dealing with very expensive and prestigious products.

Answer 1

Ответ:

1 The idea of distribution is to deliver a product from the producer to the end user in the most efficient way possible.

2 The elements of a distribution channel include the producer, middlemen (such as wholesalers, retailers, and agents), and the end user.

3 The direct distribution channel involves the producer selling directly to the end user, while the indirect distribution channel involves the use of middlemen (such as wholesalers, retailers, and agents) to get the product to the end user.

4 The functions of retailers include buying products from wholesalers or producers, displaying and merchandising products, and selling products to end users.

5 The functions of wholesalers include buying products from producers, storing and transporting products, and selling products to retailers or other wholesalers.

6 The traditional channel of distribution involves the producer selling to wholesalers, who then sell to retailers, who then sell to end users.

7 Industrial products are sold either directly to industrial users or indirectly through agent middlemen.

8 Agent middlemen serve as independent intermediaries between the producer and industrial users, and they are paid through commissions, which are a percentage of the value of the goods they sell.

9 The choice of a particular distribution channel depends on a number of relevant factors, including the manufacturer's production capability and marketing resources, the target market, and the product itself.

10 Intensive distribution is used for convenience goods that are distributed widely, selective distribution is used for goods that require specific outlets, and exclusive distribution is used for expensive and prestigious products that are distributed through a single outlet.

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