Theory question 101
DistributionMadam Juls buys goods in large quantities from Azon Ltd and sells in smaller quantities to shop owners who in turn, sells in unit to end users.
(a) State five functions madam Juls would perform for Azon Ltd. (b) Outline five factors that could influence Azon Ltd.'s choice of distribution channel.
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(a) Any five: buys in bulk, giving quick sales; finances Azon by prompt or advance payment; stores the goods; transports goods to retailers; bears risks of loss and price changes; gives market information/feedback; promotes the products; grades and repackages goods.
(b) Any five: nature of the product; size and spread of the market; Azon's financial resources; level of control wanted; availability of middlemen; channels used by competitors; cost of each channel; government regulations; size of orders.
Madam Juls is a wholesaler; give wholesaler functions to the producer.