2.2.3 Place

Question 1

Place

Answer 1

How goods and services reach customers

Question 2

Channels of distribution

Answer 2

The different ways of moving goods from producers to customers.

Examples include producers, retailers, e-tailers

Question 3

Direct Channel of distribution

Answer 3

Only involves the producer and customer

Question 4

Advantage of direct channel of distribution

Answer 4

Producer can control the distribution of their products and the price they are charged

Question 5

Disadvantage of direct channel of distribution

Answer 5

It can become increasingly difficult to sell to a large number of customers

Question 6

Indirect channels of distribution

Answer 6

Introduces an intermediary into the distribution process. The intermediaries make it easier for producers to distribute their product and make it more convenient for customers to buy those products

Question 7

Retailers

Answer 7

A business that sells goods to the public , often in a physical shop

Question 8

E-tailers

Answer 8

A business that sells goods through an online store

Question 9

Advantages of e-tailers

Answer 9

Offer wide range of products as not limited by size of shop
Allow small producers to sell through their website for a fee
Lower prices as does not need to pay for physical store
Customers can shop whenever they want

Question 10

Disadvantages of e-tailers

Answer 10

Customers cannot pay cash
Customers need internet access
Goods need to be delivered, so customers must be willing to wait
Items cannot be seen in person before purchasing