BUSN 1101 Study Guide - Direct Market, Profit Margin
Document Summary
Distribution: all activities involved in getting the right quantity of your product to your customers at the right time at a reasonable cost. Intermediary a wholesaler or retailer who helps move products from their original source to the end user. Mostly small start up sell directly to customers. Many business-to-business sales take place through direct contact between producer and buyer. The internet has greatly expanded the number of companies using direct distribution, either as their only distribution channel or as an additional means of selling. Selling direct to the customer is a certain degree of control over prices and selling activities. You must commit your own resources to the selling process, and that strategy isn"t appropriate for all businesses. You don"t have to depend on or pay an intermediary. Retailers buy goods from producers and sell them to consumers, whether in stores, by phone, through direct mailings, or over the internet.