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Words: | Submitted: Fri Jan 20 2006
... goods are valuable or expensive. Channels of Distribution The growth of computer systems has improved way stocks are controlled and goods distributed. Almost all goods have barcodes which identify the country of origin, the maker and the product. DIRECT DISTRIBUTION: Goods are sold by manufacturer directly to retailer most large retail and large supermarket chains buy goods in bulk directly from manufacturer. DISTRIBUTION USING WHOLESALERS: This is when the manufacturer sells goods to the wholesaler in very large quantities and cheaply. They add a mark up to cover their costs and make a profit and sell at a higher price to retailers. They in turn add their mark up before selling to consumers. DISTRIBUTION THROUGH OWN SHOPS: Goods are sold to consumer through shops owned by the manufacturer. E.g. Nike sells trainers in the Nike town. DISTRIBUTION DIRECTLY FROM PRODUCERS: goods are sold directly to consumers by the producer. E.g. farmers selling through farm shops ...
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