(Optional) Identify distribution methods.

Identification should include

• direct channel (i.e., the producer sells directly to the consumer)
• indirect channel (i.e., the producer sells to an intermediary, such as a retailer or wholesaler)
• Internet (direct or indirect).

Identification should also include comparing the

• personnel requirements of each method
• cost requirements of each method
• convenience of each method to the customer
• legal and licensing requirements.

Process/Skill Questions:

• What are the primary methods of retail distribution? What are examples of each?
• How does a business determine the most advantageous method of distribution?
• Why would a business opt to use direct channel? Indirect channel?
• What problems can occur if product distribution breaks down?
• How does a specific product move from production to consumer?
• How does the distribution channel affect price?