2.2- part 2 Flashcards
What is retailing?
A traditional way product are distributed to customers through shop/ physical building
Advantages of retailing
- Allows customers face-face support form a business
- Gives customers chance to trial products
Disadvantages of retailing
- Owing/renting a shop can add expense such as Mortgage repayments
- May have to reduce profit margins
What is e-tailing?
When products and services are sold directly to the customers through a website
Benefits of e-tailoring
- Business doesn’t need to rent physical building
- Business can access national + international market
- Small businesses can be started up more easily
- Allows new markets to grow
Disadvantages of e-tailing
- Customers can’t check product’s quality before buying it
- E-tailors manage their own distribution costs
What is an integrated marketing mix?
A marketing mix that has a theme, with the elements all supporting each other
How does product affect price?
As business develops it’s products they must ensure that the product/service is proditable
How does price affect promotion?
If business adds value to a product it may change the price of the product
How does promotion affect place
Promotion creates awareness of product thus determine location of business as it has to be visible
How does place affect product?
E-tailors must design product so that it’s cheap and easy to post + will not get damaged on the way to customer
How can businesses achieve competitive advantage?
- Sell a product that is better than the competition
- Advertising campaign can go viral thus increasing public awareness
- Product brand image
- Lower prices
