(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?