Direct to Consumer

Manufacturer-Retailers-Customers

A business can choose to skip wholesalers and sell directly to retailers. A retailer is any shop that sells directly to the customer in small quantities. Tesco and the corner shop at the end of the road are both examples of retailers.

Higher margins or lower prices

Bypassing wholesalers makes it likely that customers will pay lower prices because the business is “cutting out a middle man”.

Hard to contact retailers

It can be hard for a business, especially new start-ups, to get retailers to stock their products.
This means that it can be harder for a firm to reach as many people and it could take longer to sell a company’s products.

Control over shops (retailers)

Going directly to retailers means that a producer or manufacturer can have complete control over which shops customers can buy their products from.
A luxury brand may not want their products stocked in Tesco or TK Maxx as it may lead consumers to perceive their brand as lower quality.

Higher logistics costs

Selling to retailers directly may increase a business’ delivery and logistics costs if they have to deliver all the products to a retailer themselves.

Direct to Consumer

Direct to consumer distribution involves selling directly to individual customers. This is the cheapest channel for the consumer and it is often done by businesses using their own website.

Nobody else takes a cut

Selling direct to consumer lets a business charge the lowest price possible to the consumer because there are no intermediaries (organisations in the middle) who take a cut of the profit.
Alternatively, the business can charge the same price and have a higher margin.

Hard to reach customers

It can be hard to reach as many customers as quickly because a firm will have to invest time and money into setting up new stores or their own website.

E-commerce

It is becoming easier to reach more consumers directly with the use of e-commerce and m-commerce.
This means that lots of businesses don't need to set up physical stores.

1Investigating Small Business

1.1Enterprise & Entrepreneurship

1.1.1The Dynamic Nature of Businesses

1.1.2Risk & Reward

1.1.3The Role of Business Enterprise

1.1.4The Role of Business Enterprise 2

1.1.5The Role of the Entrepreneur

1.1.6End of Topic Test - Dynamic Nature of Business

1.1.7Grade 9 - Dynamic Nature of Business

1.2Spotting a Business Opportunity

1.2.1Customer Needs

1.2.2Market Research

1.2.3Market Segmentation

1.2.4The Competitive Environment

1.2.5Primary & Secondary Market Research

1.2.6End of Topic Test - Business Opportunities

1.2.7Application Questions - Business Opportunities

1.2.8Exam-Style Questions - Market Segmentation

1.2.9Diagnostic Misconceptions - Competition

1.3Putting a Business Idea into Practice

1.4Making the Business Effective

1.4.1The Options for Start-Up & Small Businesses

1.4.2Limited Liability

1.4.3Franchising & Not-For-Profits

1.4.4Business Location

1.4.5The Marketing Mix

1.4.6Business Plans

1.4.7End of Topic Test - Effective Business

1.4.8Application Questions - Effective Business

1.4.9Exam-Style Questions - Business Plans

1.5Business Stakeholders

1.5.1Business Stakeholders

1.5.2Technology & Business

1.5.3Legislation & Business

1.5.4Legislation & Business 2

1.5.5The Economy & Business

1.5.6External Influences

1.5.7End of Topic Test - Business Stakeholders

1.5.8Grade 9 - Business Stakeholders

1.5.9Diagnostic Misconceptions - Recessions

2Building a Business

2.1Growing the Business

2.1.1Business Growth

2.1.2Finance

2.1.3Changes in Business Aims & Globalisation

2.1.4Ethics & Business

2.1.5The Environment & Business

2.1.6End of Topic Test - Growing a Business

2.1.7Application Questions - Growing a Business

2.1.8Exam-Style Questions - Business Growth

2.2Making Marketing Decisions

2.2.1Product

2.2.2Product Life Cycle

2.2.3Price

2.2.4Pricing Methods

2.2.5End of Topic Test - Product & Price

2.2.6Grade 9 - Product & Price

2.2.7Promotion & Advertising

2.2.8PR & Sales Promotions

2.2.9Sponsorship & Product Placement

2.2.10Promotional Mix

2.2.11End of Topic Test - Promotion

2.2.12Application Questions - Promotion

2.2.13Exam-Style Questions - Promotional Mix

2.2.14Place & Wholesalers

2.2.15Direct to Consumer

2.2.16E-commerce & M-commerce

2.2.17Diagnostic Misconceptions - Decreasing Price

2.2.18Diagnostic Misconceptions - Advertise vs Promote

2.2.19Diagnostic Misconceptions - Social Media

2.3Making Operational Decisions

2.3.1Job Production

2.3.2Batch & Flow Production

2.3.3Working with Suppliers

2.3.4Effective Supply Chains

2.3.5Just In Time & Just In Case

2.3.6Managing Quality

2.3.7Total Quality Management

2.3.8The Sales Process

2.3.9End of Topic Test - Operational Decisions

2.3.10Grade 9 - Operational Decisions

2.3.11Exam-Style Questions - Managing Stock

2.3.12Diagnostic Misconceptions - JIT vs JIC

2.4Making Financial Decisions

2.4.1Gross Profit & Net Profit - Definitions

2.4.2Gross Profit - Calculations

2.4.3Net Profit - Calculations

2.4.4Rate of Return

2.4.5Rate of Return - Calculations

2.4.6Research & Financial Data

2.4.7Marketing Data

2.4.8Percentage Change - Calculations

2.5Making Human Resource Decisions

2.5.1Organisational Structures

2.5.2Organisational Structures 2

2.5.3Recruitment

2.5.4Effective Recruitment

2.5.5Training a Workforce

2.5.6Motivating a Workforce

2.5.7End of Topic Tests - Human Resources

2.5.8Application Questions - Human Resources

2.5.9Exam-Style Questions - Human Resources

2.5.10Diagnostic Misconceptions - Owners vs Shareholders

2.5.11Diagnostic Misconceptions - Internal Recruitment

2.5.12Diagnostic Misconceptions - Employee Motivation

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