10 Questions
What is a direct channel in distribution?
A pathway from the producer straight to the customer
What are intermediaries in distribution?
Middlemen between a producer and a customer
What is an indirect channel in distribution?
A pathway in which the product goes from the producer to one or more intermediaries before it reaches the customer
What is a markup in a distribution chain?
A price increase imposed at each link in the distribution chain
What is distribution management primarily concerned with?
Management of materials and processes associated with incoming and outgoing products
What is a physical resource in the context of a business?
Any tangible asset that the business owns
What is a financial resource in the context of a business?
The money that the business uses in daily operations
What are human resources in the context of a business?
The people that help make the business run
What are intellectual resources in the context of a business?
Unique inventions or processes created by the business
Why is it important to list anything created for the purposes of the business?
To protect intellectual property and benefit both the individual and society
Study Notes
Distribution Channels
- A direct channel in distribution is a channel where a product or service is sold directly to the customer by the manufacturer or producer.
- Intermediaries in distribution are third-party entities that facilitate the movement of goods or services from the producer to the customer, such as wholesalers, retailers, and distributors.
- An indirect channel in distribution is a channel where a product or service is sold to the customer through one or more intermediaries.
Distribution Concepts
- A markup in a distribution chain is the amount added to the cost of a product or service by each entity in the chain to cover their costs and make a profit.
Distribution Management
- Distribution management is primarily concerned with planning, organizing, and controlling the flow of goods, services, and related information from the producer to the customer.
Business Resources
- A physical resource in the context of a business refers to tangible assets such as buildings, equipment, and inventory.
- A financial resource in the context of a business refers to the funds and money available to the business to support its operations.
- Human resources in the context of a business refer to the people employed by the business, including their skills, experience, and labor.
- Intellectual resources in the context of a business refer to intangible assets such as patents, copyrights, trademarks, and trade secrets.
Asset Management
- It is important to list anything created for the purposes of the business, such as intellectual property, physical assets, and financial resources, to ensure that they are properly managed, utilized, and protected.
Test your knowledge of distribution channels with this quiz. Explore direct and indirect pathways for products, and learn about the steps involved in moving products through the distribution chain.
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