5.6 - promotion and distribution

Question 1

Distribution channel

Answer 1

How the ownership of a product passes from the producer to the final Customer.

Question 2

Wholesalers

Answer 2

Break bulk; they buy in large quantities from a producer and sell to retailers

Question 3

Retailers

Answer 3

Shops that sell direct to the customer

Question 4

e-commerce

Answer 4

involves online trading

Question 5

M-commerce

Answer 5

Online trading via a mobile phone

Question 6

Direct marketing

Answer 6

When there is a direct link from the producer to the customer with no intermediaries

Question 7

Intermediary

Answer 7

A link in the distribution chain between the producer and the customer.

Question 8

distribution channel -3

Answer 8

-producers
-wholesalers
-retailers

Question 9

Ways of connecting distribution channels -4

Answer 9

-Mail-order
-Telesales
-Online selling via e-commerce and m-commerce
-Direct marketing

Question 10

Mail-order

Answer 10

produce a catalogue and customers order from these instead of retail outlets.

Question 11

Telesales

Answer 11

a business sells products over the telephone in order to persuade the customer to purchase

Question 12

Online selling via e-commerce and m-commerce

Answer 12

many businesses sell their products online or via mobile apps with some having no physical stores.

Question 13

Direct marketing

Answer 13

occurs when there is a direct link from the producer to the customer with no intermediaries with telesales,mail order and online selling.

Question 14

‘multi-channel operation’

Answer 14

a mixture of physical and online stores

Question 15

e + m commerce advantages -3

Answer 15

-Customers can order at anytime
-Customers can order from home
-Customers can order from anywhere in the world potentially

Question 16

e + m commerce disadvantages -3

Answer 16

• able to distribute to a much wider range
• able to handle returned goods
• insure security of the site

Question 17

level of distribution - level zero

Answer 17

no intermediaries between producer and customer

Question 18

level of distribution - One level

Answer 18

when there is one intermediary between producer and customer.

Question 19

level of distribution - Two levels

Answer 19

when there are two intermediaries between the producer and the customers.

Question 20

Intermediaries in distribution - advantages -2

Answer 20

• immediate access to a
  wholesaler
• allows customers
  to purchase a range of products

Question 21

Intermediaries in distribution - disadvantages -2

Answer 21

• intermediaries will want to make a profit
• producer also loses control of the product

Question 22

Selecting the right distribution channel - Costs

Answer 22

comparing selling directly to selling through intermediaries.

Question 23

Selecting the right distribution channel - lack of control

Answer 23

looking at how much control the business wants to retain over how the product is distributed.

Question 24

Selecting the right distribution channel - The product

Answer 24

will consider where and how customers are expected to purchase.

Question 25

Importance of getting distribution right factors

Answer 25

• sales
• image
• Costs of distribution

Question 26

advantage of internet -2

Answer 26

• small businesses expand
• easier to reach customers anytime

Question 27

advantage of stores -2

Answer 27

-advice available
-the range of products.

Question 28

disadvantage of stores -2

Answer 28

-more expensive
-over time manufacturers -likely increase direct distribution.