JSS3BUSI

NESSSTUDI
ES
Topi
c:Di
str
ibut
ion(
Rev
isi
on)
Cont
ent
s:
.
Meani
ngofdi
str
ibut
ion
.
Chai
nofdi
str
ibut
ion.
.
Fact
orsi
nchoosi
ngapar
ti
cul
archannel
ofdi
str
ibut
ion.
.
Funct
ionsoft
hewhol
esal
ert
othemanuf
act
urerandr
etai
l
er.
Meani
ngofDi
str
ibut
ion
Thisistheactofmov
ing goodsand ser
vicesf
rom t
hepr
oduct
ion poi
ntt
othef
inal
consumer.
Channel
orChai
nofDi
str
ibut
ion.
Ther
ear
edi
ff
erentchannel
sofdi
str
ibut
inggoodst
othef
inal
consumer
.Theyi
ncl
ude:
1.
Manuf
act
urer→ Consumer
2.
Manuf
act
urer→ Whol
esal
er→ Pr
oducer→ Whol
esal
er→ Consumer
3.
Producer→ Agent→ Consumer
.
4.
Producer→ Agent→ Ret
ail
er→ Consumer
.
5.
Producer→ Ret
ail
er→ Consumer
.
6.
Manuf
act
urer→ Whol
esal
er→ Ret
ail
er→ Consumer
.
7.
Manuf
act
urer→ Agent→Whol
esal
er→Ret
ail
er→ Consumer
.
Fact
orst
oConsi
derbef
oreChoosi
ngaPar
ti
cul
arChannel
ofDi
str
ibut
ion.
1.Natur
eofProduct
:Thenat
ureoft
heproduct
sdeter
minesthechanneloft
hedistr
ibuti
on
chosenwhet
herperi
shabl
eordur
abl
egoods.
Peri
shabl
egoodsmaytakeshort
erchannel.
2.Financi
alr
esourceav ai
labl
etot
hemanuf
acturer
:I
famanufacturerhasenoughcapi
tal
,
he
canusehi sownsal esmenormayopent hei
rownr et
ailoutl
ets,t
herebyshor
teni
ngthe
channelofdi
str
ibut
ion.
3.TheNeedtocontr
oltheret
ailpr
ice:Amanuf acturermaywanttomaintai
ntheretai
lpr
ice
ofhisproducti
nor dert
oav oidthepr oductSel l
i
ngabovet heret
ailpri
ce.Thi
scanbe
achi
evedbyshor
teni
ngthechai
nofdi st
ri
buti
ont oavoidbi
gmarginsi
npr i
ce.
4.Locat
ionofConsumers:Asituat
ionwherebyconsumersarespreadoverawideareasuch
asbigcountryl
i
keNiger
ia,t
hemanuf act
urermightconsi
derusingalongchannel
.However,
i
f
theproduct
ssoldi
sforalimit
ednumberofcust omers,
ashortchannel
maybeused.
5.Si
zeoft heor
der:Ifthemostext
remeorgr
eat
estconsumersofaproductbuyl
arge
quanti
ti
es,
themanufact
urermayby
passmostofthemiddlemenandsel
ldir
ectl
ytothe
consumer.
Funct
ionsofWhol
esal
ert
otheManuf
act
urer
.
1.Thewhosesal
errepresent
sthemanuf
act
urerbypr
ovi
dingser
vicesofi
nst
all
ati
onand
repai
rsonbehal
fofthemanufact
urer
.
2.
Thewhol
esal
eract
sast
hemanuf
act
urer
sagentbyhel
pingi
nmar
ket
ingofpr
oduct
s.
3.Thewholesal
erhel
pinst
ori
nggoodsbymov
ingi
tfr
om wher
etheyar
epr
oducedt
ohi
sor
herwarehouse.
4.
Thewhol
esal
erhel
ptoadv
ert
iset
hepr
oductf
ort
hemanuf
act
urer
.
5.
Thewhol
esal
erhel
ptor
epr
esentt
hei
nter
estoft
hepr
oducerandt
her
etai
l
er.
Funct
ionsofWhol
esal
ert
oret
ail
er
1.Thewhol
esal
ergr
ant
ssmal
lret
ail
erscr
edi
ttoenabl
ethem buygoodsf
ordi
str
ibut
iont
o
thefi
nal
consumer
.
2.
Thewhol
esal
ersel
l
sinsmal
l
erquant
it
iest
other
etai
l
er.
3.Thewholesal
erhel
pt heret
ail
ert
otr
anspor
tgoodsf
rom hi
sorherwar
ehouset
othe
retai
l
erspl
aceofbusi
ness.
4.
Thewhol
esal
ersometi
mesprovi
desaft
ersal
esser
vicesbyexpl
aini
ngt
hef
eat
uresoruses
oft
hepr
oductheorshesel
l
stotheret
ail
er.
Assi
gnment
1.Assumingyouareanimporter
,suggestt
hebestchannelofdist
ri
buti
ontoMrTaiwowhoi
s
anex por
ter
,thebestchannelofdistr
ibut
ionofpackagedgroundnutmadelocal
l
yandwit
h
reasons.
2.
Whoi
stheendofpr
oduct
ion?
Giv
ereasonswhyt
hisi
sso.
Deadl
ineofsubmi
tt
ion:
12t
hJune,
2020.