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Business GCES EDEXCEL

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  1. 1-1-Enterprise-And-Entrepreneurship edexcel
    3 主题
  2. 1-2-Spotting-A-Business-Opportunity edexcel
    4 主题
  3. 1-3-Putting-A-Business-Idea-Into-Practice edexcel
    6 主题
  4. 1-4-Making-The-Business-Effective edexcel
    4 主题
  5. 1-5-Understanding-External-Influences-On-Business edexcel
    5 主题
  6. 2-1-Growing-The-Business edexcel
    9 主题
  7. 2-2-Making-Marketing-Decisions edexcel
    5 主题
  8. 2-3-Making-Operational-Decisions edexcel
    4 主题
  9. 2-4-Making-Financial-Decisions edexcel
    2 主题
  10. 2-5-Making-Human-Resource-Decisions edexcel
    4 主题
  11. 3-1-The-Exam-Papers edexcel
  12. 3-2-Business-Exam-Skills edexcel
  13. 3-3-Structuring-Your-Responses edexcel
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Exam code:1BS0

Methods of distribution

  • Place in the marketing mix refers to where customers purchase the businesses products/services

  • Distribution channels refer to the various intermediaries through which goods/services move from the business to the end customer 

Types of distribution channels

Diagram showing types of distribution channels: three-stage (producer, retailer, customer) and two-stage (e-tailer, customer).
The two different types of distribution channels businesses can use to move products to the end customer

Three stage distribution channel

  • The three stage distribution channel moves the product directly from the producer to the retailer who then sells to to the final customer

  • This channel is often used for products with high profit margins, where the manufacturer can afford to sell directly to the retailer and still make a profit

    • Eg Toshiba produces laptops and sells them directly to retailers like Currys, who then sells them to the end customer

Two stage distribution channel

  • The two stage distribution channel moves the product directly from the manufacturer to the end customer

  • This channel is commonly used for products that are sold online or through direct sales channels and is referred to as e-tailing

    • E.g. RyanAir sells its service (passenger tickets) directly to the end customer on their website

Using e-commerce to generate sales

  • Changes in distribution have been impacted by social trends such as the growth of e-commerce and the shift from product-based businesses to service-based businesses

  • By understanding these trends, businesses can adjust their distribution strategies to better meet the needs of their customers and stay competitive in the marketplace

 The growth of e-commerce

Explanation

Example

  • Online distribution has become increasingly popular due to the convenience and accessibility it offers to consumers 

  • Many businesses now use drop-shipping, which allows them to sell products without holding stock

    • Once the business has sold the products, they are shipped directly from the producer to the customer

    • This reduces the cost and complexity of distribution, making it easier for businesses to sell online

  • Amazon is known as a third-party logistics provider (3PLs) 

  • They provide businesses with the infrastructure and online marketplace which allows them to reach a wider audience and increase sales without having to invest in their own distribution infrastructure 

  • Many business now generate the bulk of their sales selling on Amazon

Responses

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