chapter 17 place

Question 1

place

Answer 1

distributing the right product to the customer at the right place and right time

Question 2

channels of distribution

traditional

Answer 2

manufacturer
wholesaler
retailer
consumer

large amts, not expensive, eg soft drinks

Question 3

channels of distribution

alternative

Answer 3

manufacturer
retailer
consumer

small volumes
expensive
TVs

Question 4

channels of distribution

direct

Answer 4

manufacturer
consumer

online presence
good brand
e-commerce sites eg ZARA

Question 5

channels of distribution

agent

Answer 5

manufacturer
agent
consumer

eg travel agent

Question 6

list factors choosing distribution

Answer 6

profit margin
type of good
market size
online presence
technology

Question 7

explain factors choosing distribution

Answer 7

profit margin- the more stages (eg wholesaler, retailer) involved the less a business profits per item sold

type of goods- perishable are best sold direct. mads produced are best sold through wholesalers who can breakbulk and sell to retailers

market size- low volume operations may suit a more direct channel (especially for job production), since orders might be customs

online presence- a business with lots of followers can sell directly through websites and social media. This is useful if the target market regularly uses devices

technology- apps such as Uber Eats and deliveroo provide platforms where manufacturers can sell

Question 8

adv of a direct channel for a small business

Answer 8

lower overheads
potential global reach
open 24/7
higher rates of profit

Question 9

dis of a direct channel of distribution for a small business

Answer 9

hard to become known
increased costs to customers for eg postage
in store competitors
loss of expertise

Question 10

adv of a small business using a large retailer

Answer 10

retailers’ ad campaign
access to research
large volumes of sales
in store exposure

Question 11

dis of a small business using large retailers

Answer 11

own brand introductions
lack of negotiating power
lots of competition

Question 12

impact of the changing consumer needs on product

Answer 12

USP
design
features
packaging
functions
Goodfella-gluten free

Question 13

impact of the changing consumer needs on the price

Answer 13

competitors
costs
product’s image
target market
disposable income
recession- low prices

Question 14

impact of the changing consumer needs on place

Answer 14

online
newsletters
data on habits

Question 15

impact of the changing consumer needs on promotion

Answer 15

online
social media
complaints can go viral