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Business P2 - Unit 29

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Submitted By emilysheehan966
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A
B
D
C
Manufacture
Consumer
A
B
C
D
Whole Salers
Retailers

Manufactures always have to be able to sell their goods to consumers. They acieved this buy sending the products throught different channels of distribution.
Channel of Distribution
The channels shown in the diagram the main ways that manufactured goods are passed from manfactures to the consumers. Each channels includes the same activites: as well as the act of buying and selling, the product will be promoted at the various stages of disribution, stored for a time, and the transported to the next stage.
A manufacturers may sell direct to the customer, as shown in channel A, and omit both wholesaler and retailer. Example; online shopping or farmshops where they grow their own things. An example of channel a would be the internet eg. Topman. Manufacturers sell directly to the retailer to save money on rent, wages and bills.

In channel B, the retailer in omitted, the wholesaler receiving the goods from the manufacturer and selling them direct to final customers. An example of channel B would be Costco. Manufacturers sells straight to the wholesalers so the wholesalers can sell household items and sell to a larger variety of people so they can which will bring in more money.

Channel C shows the traditional pattern. The manufactures will sell all the products in bulk to the wholesalers, who then will resell them in smaller amounts to retailers; then the retailers then sell single items to the customers. Many foodstuffs and fiinished goods will still be sold through the traditional channel. Manufacturers sells straight to the wholesalers and then retailers because they don’t have the facilities to store all the large amounts of stock.

The wholesaler may be excluded by a manufacturer who the sells big retailers (channel D). These retailers, because of the size, can also the function

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