Place (Distribution)

• What is the common name for "distribution" in business?

  Place
• Why is distribution important for a business?

  It ensures products reach customers effectively
• What are the potential issues if customers are not near a retailer?

  They may not purchase the product
• What is the objective of distribution?

  To make products available at the right time
• What are some examples of distribution channels?

  Retailers, distributors, direct sales, wholesalers
• How is a distribution channel defined?

  All organizations a product passes through
• What are intermediaries in the context of distribution?

  Organizations involved in the distribution process
• Why do businesses use intermediaries for distribution?

  They increase efficiency and sales potential
• What is the main function of a distribution channel?

  To link production and consumption
• What are the different channel levels in distribution?

  1. Producer → Wholesaler → Retailer → Consumer
  2. Producer → Retailer → Consumer
  3. Producer → Consumer
• What does a wholesaler do in a distribution channel?

  Buys and stores large quantities of goods
• Why is using wholesalers beneficial for small retailers?

  It makes economic sense for limited orders
• What is a direct-marketing channel?

  A channel with no intermediary levels
• What is an example of a direct marketing channel?

  A factory outlet store
• What factors should be considered when choosing a distribution channel?

  Nature of the product, market, competition
• How does the nature of a product affect distribution choices?

  Perishable or complex products need specialists
• What is multi-channel distribution?

  • Using more than one type of distribution channel
  • Common in modern retailing
  • Example: High street retailers using e-commerce
• What are the benefits of multi-channel distribution?

  Reaches more market segments and increases revenue
• What is a potential drawback of multi-channel distribution?

  It can create channel conflict
• What should be considered regarding the desired image of a product in distribution?

  Intermediaries must be suitable and relevant
• What factors affect the location of a retailer?

  Proximity to competitors and transport links
• What is one factor affecting the cost of location for a retailer?

  Rent
• How does the level of employment in an area affect retail location?

  Higher income can attract more customers
• What is a factor affecting the proximity of a retailer?

  Transport links
• Why is convenience to customers important for retailer location?

  It increases foot traffic and sales
• What is a factor that can affect space for expansion in retail?

  Location size