Chapter 14 - Fernando Renjel

Question 1

what is a place factor?

Answer 1

The place where consumer will be able to buy product

Question 2

what is a channel of distribution?

Answer 2

How products get from the producer to the final consumer.

Question 3

advantages and disadvantages of Producer > consumer

Answer 3

Advantages:
- all of profit is owned by the producer
- product controls marketing mix
- quickest method
- producer has direct contact with consumer
Disadvantages:
- consumers not always able to try product
- delivery costs are high
- storage must be paid
- promotional activities must be carried out

Question 4

advantages and disadvantages of Producer > retailer > consumer

Answer 4

Advantages:
- consumers can see and try product
- cost of holding inventories are paid
- retailer pays for advertising and promotional activities
- retailer located conveniently for consumers
Disadvantages:
- retailer take some of the profit
- producers lose some control in marketing mix
- producers must pay for delivery costs
- retailers usually sell to competitors

Question 5

advantage and disadvantages of Producer > wholesaler > retailer > consumer

Answer 5

Advantages:
- wholesaler buys in bulk from producer
- wholesaler will advertise and promote product to retailers
- transport cost to the retailer is paid for by the wholesaler
- wholesaler will pay for storage costs
- distribution of goods through wholesalers help
Disadvantages:
- another middleman
- producer loses even more control over marketing mix

Question 6

advantages and disadvantages of Manager > agent > wholesaler > retailer > consumer

Answer 6

Advantages:
- agents have specialist knowledge of the market
Disadvantages:
- another middleman is added to the channel of distribution

Question 7

What is a wholesaler?

Answer 7

A business that buys products in bulk from producers to then sell to retailers.

Question 8

.what is a retailer?

Answer 8

Shops and other outlets that sell goods and services to the final consumer.

Question 9

what is a middlemen?

Answer 9

Shops and other outlets that sell goods and services to the final consumer.

Question 10

what is direct selling?

Answer 10

Product sold by producer to producer directly to find the consumer without need of any middleman.

Question 11

.Three factors to be considered when determining which channel of distribution to use:

Answer 11

• cost
• nature of product
• market
  answer: - cost
• nature of product
• market

Question 12

what is a promotion?

Answer 12

Marketing activities used to communicate with customers and potential consumers to inform and persuade them to buy products.

Question 13

what is the main objective of a promotion?

Answer 13

increase sales

Question 14

what are the aims of promotion?

Answer 14

• attracting attention of customers
• persuading customers to buy product
• explain their product is better than competitors

Question 15

name methods of promotion

Answer 15

• advertising
• sales promotion
• personal selling
• sponsorship

Question 16

what is advertising?

Answer 16

Paid form of communication with consumers which uses printed/ visual media. Aim ) inform/ persuade customers to buy product

Question 17

what is informative advertising?

Answer 17

Information about the product is communicated to the consumer to create product awareness and attract their interest.

Question 18

what is persuasive advertising?

Answer 18

Communication with consumers aimed at getting them to buy a firms product rather than a competitor’s product.

Question 19

what is a sales promotion?

Answer 19

Incentives used to encourage short term increases in sales or repeat purchases.

Question 20

name types of sale promotion

Answer 20

• loyalty rewards schemes
• competitions and games
• money off coupons or vouchers

Question 21

what is personal selling?

Answer 21

Sales staff communicate directly with the consumer to achieve a sale and form a long-term relationship between the firm and the consumer.

Question 22

what is direct mail?

Answer 22

printed materials which are sent directly to the address of customers.

Question 23

what is a sponsorship?

Answer 23

Payment by business to have its name or product associated with a particular event.

Question 24

what is marketing budget?

Answer 24

The amount of money made available by a business for it’s marketing activities during a particular period of time

Question 25

what is e-commerce?

Answer 25

The use of the Internet and other technology is used by business to market and sell goods and services to costumers (online shopping electronic payment or hotel reservations)

Question 26

what threats and opportunities does e-commerce brings?

Answer 26

Opportunities:
- increased market
- reduced costs
- better information
Threats:
- increased competition
- unfamiliarity