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Business Studies IGCSEPDF 116
212 pagesrevision 46931
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Manufacturer →
Agent → Wholesaler
→ Retailer →
Consumer
Manufacturer →
Wholesaler →
Retailer → Consumer
Wholesaler buys in
bulk and sells
smaller quantities
to retailers.
Agent handles
foreign distribution
for exporters.
Agent has local
market knowledge.
Reduces storage
and transport costs
for producer.
● Product type: Industrial goods may go direct; consumer goods use
wholesalers/retailers.
● Technical complexity: Technical products need direct selling for detailed
explanation.
● Purchase frequency: Everyday items need widespread retail access.
● Price level: Expensive or luxury items sold through select outlets.
● Durability: Perishables (e.g., fruits) need rapid, wide distribution.
● Customer location: Global markets use e-commerce.
● Competition: Must match or exceed competitors’ accessibility.
Another
intermediary
reduces profit
margin.
Less control;
profits shared
among
intermediaries.
Promotion refers to activities that communicate with customers, create awareness, and
encourage purchase.
Factors Affecting Choice of Distribution Channel:
4. Promotion