Answer:

See the diagram on Pg. 12 of Success in Commerce 3rd edition. There are several ways of distributing goods to ultimate consumers. The various ways of distribution of goods are outlined below.

Route one:

Many manufacturers prefer to sell goods through wholesalers who in turn sell to many small retailers. The ultimate consumers purchase their essential products from these small retailers. This is how many manufacturers shift the responsibility of marketing, warehousing and cash flow problem to large wholesalers and on the other hand small scale retailers are being benefited because of credit and transport facility provided by many wholesalers.

Route two:

Many manufacturers prefer to sell to large-scale retailers who are capable of purchasing goods in large quantities and help manufacturers to promote their goods by increasing market share via successful marketing process which is proved to be better then wholesalers. Examples of large-scale retailers are Marks & Spencer, Halfords and Richard shops. Of course these large-scale retailers perform similar tasks of wholesalers such as warehousing, buying in bulk, holding stocks and redistribution in small quantities.

Route three:

Many manufacturers prefer to sell their manufactured goods through their own shops. This is because many manufacturers believe that if they can sell their goods through their own shops they would be able to increase annual turnover, GP% of sales & would be able to establish better public relationship with the customers. Due to the reduced chain of distribution goods can reach the ultimate consumes in time and at less cost. Even consumers would be able to provide better feed back about products to the manufacturers and this way manufacturers would bring required changes in shape, colour and packaging of the goods.

Route four:

Many manufacturers sell their goods through newspaper advertisements and this way they can reach the maximum potential customers. Products that are sold in this way are industrial machinery, furniture, equipment and capital goods. Manufacturers also use extensively designed catalogues and manuals while selling goods through this channel of distribution.

Route five:

Many manufacturers produce goods exclusively for some selected customers and these customers are contacted by part time agents, newspaper advertisements and customers can place their orders over telephone or with the help of part time agents. Specially designed exclusive and expensive catalogues are used to promote goods of mail order firms. These firms provide long-term credit, customer satisfaction and cash refund guarantee along with first class delivery mail service. Though customers may pick up the products of their choice in the comfort of their home but cannot examine goods before the final agreement is signed. Due to the impulse purchase many middle class families are financially tormented and hard pressed.

Answer:

See the diagram on Pg. 14 of Success in Commerce 3rd edition

Agricultural produce requires special facilities to dispose the output quickly and timely, as these products are perishable in nature. These products are sold in one of the following ways.

Route 1:

Relatively small farmers prefer to sell their products direct to consumers through the stalls and small shops located at the farm gates.

Route 2:

Many farmers also sell their farming output to various retailers and these retailers in turn sell the products to ultimate consumers.

Route 3:

Some large- scale farmers prefer to sell their goods to national markets. One of the important examples of this national market is New Covent Garden Market in London. Goods from all over the UK come into this market for redistribution to different parts of the country.

Route 4:

Many manufacturers contact the farmers in advance for their input and this is how the farmers get a reasonable price for their output. The manufacturers process these vegetables and fruits and finally distribute the canned fruits and foodstuff directly to wholesalers and these wholesalers in turn sell these products to retailers. In the end of this distribution chain the consumers purchase food in a frozen or dehydrated state from various retailers based in the local neighborhood.

Route 5:

Sometimes farmers are encouraged to sell their output direct to a marketing board. Marketing boards are to regulate the supply and sale of specified foodstuffs. Marketing boards provide guarantee prices for the farmers' output and help to stimulate demand in the market. Marketing boards act as wholesalers and the retailers purchase their required output from the marketing boards. As usual the consumers purchase their essential goods from various retailers.