14-18

• what is distribution channel 1?

  products sold from producer directly to consumer, advantages: 1. total profit made, not shared 2. direct feedback 3. full control of price disadvantages: 1. limited location 2. high shipping costs 3. nobody shares risk of failure
• what is distribution channel 2?

  product sold from producer to retailer to consumer advantages: 1. sell large amount to retailer 2. cheaper shipping costs disadvantages: 1. no direct feedback 2. higher cost than direct selling
• what is distribution channel 3?

  whole saler, buy in bulk with potential discounts
• what is promotion and why is it important?

  what is it: 1. advertisement 2. discounts 3. word of mouth 4. celebrities 5. sponsors

  why is it important: 1. reputation 2. profit 3. loyalty 4. USP(unique selling point 5. brand image
• define cost-effective?

  when the output of the investment of a product is more than the amount invested,

  factors that effect cost effectiveness: 1. wrong time 2. wrong media platform 3. current level of competition 4. bad quality
• what are the different forms of advertisement?

  1. informative: full information on the product for sale promotion purposes

  2. persuasive: convincing consumers that they need the product, information that will benefit the customer(short or long term)
• list the advantages and disadvantages of promoting producs on social media?

  advantages: 1. worldwide 2. cheap to use 3. reaches difficult to reach groups 4. can be updated 5. order online 6. available 24/7

  disadvantages: 1. can annoy customers 2. messages can be altered 3. lack of control
• what is e-commerce?

  the selling of goods and services via the internet
• why is customer service important and how do you improve it?

  importance: 1. trust between customer and company 2. feedback of complaints to improve

  how to improve: 1. surveys 2. be open 24/7 3. be bilingual
• state the legal laws that protect customers?

  1. weight and measure 2. trade description act 3. consumer credit act 4. sale of goods act 5. consumer protection
• what are the roles of the operations management?

  1. strategy 2. cost 3. planning 4. resources 5. input-output 6. control 7. packaging
• what are the 3 forms of inventory?

  1. stock of raw materials 2. work in progress 3. stock of finished product
• state the advantages and disadvantages of little inventory?

  advantages: 1. less insurance 2. lower security needed 3. less damage to materials incase of accidents

  disadvantages: 1. wont respond quickly to change in demand 2. possible delay in production
• state the advantages and disadvantages of too much inventory?

  advantages: 1. can respond quickly to change in demand 2. less production time needed 3. can sell in bulk

  disadvantages: 1. lack of space 2. loss of value if held too long 3. will be sold for less to get rid of it
• state the 3 methods of production?

  1. job production 2. batch production 3. flow production
• define 'just in time'?

  a production method used to eliminate waste or the holding of inventory