The Distribution of Goods & Services:
In order to sell out products, businesses goes into several stages to distribute. Distribution refers to getting goods to the producers to consumers along its stages.
The producers are the inventers, they are manufactures/growers who produce & sell out to the wholesaler. The wholesaler are the second in distribution chain. The retailer buys those products from wholesaler & sell it to consumer. The consumer is the final users of goods and services.
The goods and service are human needs & wants. The services are intangible ( you cannot touch) and goods are tangle, (you can touch). These needs & wants are provided by; manufactures, wholesaler and retailers to sell to the customers & companies.
The importer/distributor is the business agent between the manufacture & wholesaler. In the condition where manufactures stationed outside the countries (overseas). The main role of distributer/ importer distribute or dispatching goods & service.
The direct selling involved manufactures selling goods to wholesaler then to retailer & finally to consumers. The selling involved goods & services exchange for money. The money is the medium of exchange between goods and services.
The advertisement made by manufactures to sell its product, benefit wholesalers & retailers. The wholesalers & Retailers never waste money for advertisement. The customers buys most of their product by seeing through the advertisement made by manufactures. This of course, causing wholesalers buying more goods from manufactures. Their market is made up of more consumers who buy their products. This type of selling is called indirect selling where manufacturers responsible for marketing of their product.
Identifying Consumers Behaviors:
The manufactures & distributors responsible for overall marketing of their product even though they are not directly selling out to customers. They conduct Market Research and Surveys to identify consumers’ behaviors, needs and wants-this are main purpose of researching and surveying. The conducting of survey involved answering series of question either orally or in written form.
The result of surveys and research help business (distributors & manufactures) draw up their budget plan, identify consumers most likely to buy their product; so that it would create a target market for them to sell their product. This is how target market is created.
The result of Market Research & Surveys help identify market space or gap. The gap is the space where needs and wants are not presently being met. The chances of starting new business is to identify the space of market which is not being met. It is by looking through the desire of customers’ needs and wants.
Niche Markets Vs Mass Markets:
The Mass Market meet needs and wants for most people; either old, young, male or female. The mass means all people who buy product suited to their needs. The market for product that are needed or wanted by most people is called mass market. Example, toothpaste.
The lot of competition in mass market. The businesses need to be careful because customer may sometimes change their habit or their preferences. The mass market is quite large.
The niche market are very small market apply to some people in communities. These market can be profitable but only for small number of businesses. There are few numbers of doctors so many people not buying stethoscope.
Student Activities:
Instruction: Read the topic on marketing products and answer all these questions and send it to infor@businessinenglish.com. Write it down in a word document and then convert it to PDF file and send it to us. This is the foundation course goes in-line with diploma in Business English and Advance business course.
Q1. Write complete sentences to explain;
- Direct Selling
- Indirect Selling
Q2. Name two (2) types of businesses that act as middlemen in goods distribution.
Q3. Who usually takes responsibility for advertising of product sold by retailers?
Q4. Explain what is meant by market gap?
Q5. What is the difference between Mass Market and Niche Market?
Q6. Discuss and write;
- Three examples of mass markets &
- Three examples of niche market.
- In which type of market would you expect there to be more competition?
Q7. If manufactures locate in overseas, who distribute products and services to wholesaler. Explain briefly.
The key words are; distribution, direct selling, indirect selling, middleman, market gap, mass market and niche market. Remember these words & know it by heart for test preparation.
Ashley Tandu
(Director of the Online English in business diploma courses)
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