(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?