2.4 The marketing mix - place

Question 1

what are the two types of distribution?

Answer 1

•physical
•digital

Question 2

What is a distribution channel?

Answer 2

This concerns how the product gets to the customer

Question 3

what is the first type of physical distribution channel?

Answer 3

•producer&raquo_space;> customer
•the business has to deal with every individual customer so it is only suitable for small businesses
•the producer keeps all the money

Question 4

what is the second type of physical distribution channel?

Answer 4

•producer» retailer&raquo_space; customer
•the producer sells to a retailer who then sells to customers
•this method is common with electrical goods e.g. Sony selling through currys

Question 5

what is the third type of physical distribution?

Answer 5

-producer»wholesaler&raquo_space;retailer&raquo_space;customer
-The producer sells to a wholesaler in large quantities
-wholesalers then “break the bulk” and sell in smaller manageable quantities to a retailer

Question 6

What is a regional distribution centre (RDC)?

Answer 6

a large warehouse owned by a retailer to store products later to be sold in shops

Question 7

what are some pros and cons if digital distribution?

Answer 7

pros:
*costs savings for a business as there is no physical delivery
*customers can access products and services 24/hrs a day and sell through out the world so there is more potential customers
*goods can be downloaded quickly/instantly

cons:
*not all goods are suitable for digital distribution
*not all customers have access to internet
*customers cant try or see the physical product beforehand