PLACE

• What is place?

  it is one of the 4p's in the marketing mix. It refers to the location where people can buy products
• What is a distribution channel?

  the route taken by a product from the producer to the consumer
• What is an intermediary distribution channel?

  a person or organisation that helps to arrange agreements or business deals between other people or organisations
• What is a wholesalers distribution channel?

  a person or business that buys big quantities of goods from manufacturers to sell in smaller quantities to retailers
• What are the two main distribution channels?

  • intermediary
  • wholesalers
• What are retailers?

  businesses that buy goods from manufacturers and wholesalers and sell them in smaller quantities to consumers
• What is bulk breaking?

  dividing a large quantity of goods received from a supplier before selling them on in smaller quantities to customers
• What types of businesses are the common retailers?

  • independents
  • supermarkets
  • department stores
  • multiples or chain stores
  • superstores or hypermarkets
  • street vendors
  • online retailers
• What is e-commerce or e-tailing?

  the use of electronic systems like amazon or drop-shipping to sell goods and services
• What is business to consumers (B2C)?

  selling goods by business to consumers
• What are the benefits of e-commerce to customers?

  • cheaper
  • customers can shop 24/7
  • huge amount of options
  • customers can shop from anywhere as long as they have internet
• What are the benefits of e-commerce for businesses?

  • may not have to meet operating costs
  • lower start-up costs
  • lower costs when processing transactions (automated systems)
  • payments can be made/received online
  • con offer goods to a global market
  • can serve customers 24/7
• What are the disadvantages to e-commerce?

  • increase in competition since selling online is cheaper
  • lack of human contact
  • possible technical problems
  • security risk (hackers)
  • customers cannot see/feel goods before buying
  • a struggle to return goods
  • customers may not have internet access or credit cards
• What is direct selling?

  where businesses sell their products directly to customers
• What are the other distribution methods?

  • direct selling
  • wholesaling
  • agents or brokers
• What is an agent or broker?

  people the bring together buyers and sellers
• What are the methods of direct selling?

  • shopping parties
  • telephone selling
  • mail order catalogues
  • door-to-door selling
  • direct response adverts
  • the internet
  • direct mail
• What should a business consider when choosing the appropriate distribution channels?

  • the nature of the product
  • the cost
  • the market
  • control
• Which is provided by retailers?

  1. wholesaling
  2. market research
  3. bulk-breaking
  4. advertising

  3. bulk-breaking
• Which is a feature of a chain store?

  1. usually located on brownfield sights
  2. offer a wide range of products
  3. staff are highly trained
  4. offer a standardised product range

  4. offer a standardised product range
• door-to-door selling is an example of what kind of selling?

  direct selling
• Which is a benefit to consumers of e-tailing?

  1. low start-up costs
  2. consumers can shop from any location
  3. businesses have more choice when locating operations
  4. consumers receive excellent after sales service

  2. consumers can shop from any location