Theory question 103
Distribution(a) Illustrate any four channels of distribution for consumer products.
(b) List and explain any four pricing strategies.
Show the model answer
Model answer
(a) Any four: Manufacturer → Consumer; Manufacturer → Retailer → Consumer; Manufacturer → Wholesaler → Retailer → Consumer; Manufacturer → Agent → Wholesaler → Retailer → Consumer; Manufacturer → Agent → Consumer.
(b) Any four, explained: cost-plus (cost plus a mark-up); penetration (low price to win market share); skimming (high price at launch); geographical (prices differ by location); psychological (e.g. ₦999); prestige (high price for a quality image); loss leader (below cost to attract buyers); competitive/going-rate (set by competitors' prices).
Explanation
Give each point as a full sentence, with an example where possible.