Chapter 38: Place (Version) Flashcards
What is ‘Place’ in the marketing mix?
Place refers to the location where people can buy products.
What are retailers?
Businesses that buy goods from manufacturers & wholesalers and sell them in smaller quantities to consumers
Why is getting products in the right place at the right time important?
If businesses cannot do this, they are unlikely to be successful.
What is a distribution channel?
The route taken by a product from the producer to the customer.
What is an intermediary?
Person or organisation that helps to arrange agreements or business deals between other people or organisations.
What is bulk breaking?
Dividing a large quantity of goods received from a supplier into smaller quantities before selling them on to customers.
What services can retailers add to products?
Packing, delivery, repair services, product information, guarantees, gift wrapping.
What are independents in retailing?
Small outlets often owned by sole traders.
What are supermarkets?
Large stores selling up to 20,000 product lines, often located on town outskirts with free parking.
What are department stores?
Large stores split into departments, often found in city centers.
What are multiples or chain stores?
Chains of stores with standardized products, pricing, layout, and staff training.
What are superstores or hypermarkets?
Very large stores selling a wide range of goods under one roof, often with minimal services.
What are kiosks and street vendors?
Small outlets selling limited goods, often in high-footfall areas.
What are market traders?
Small businesses selling from market stalls with low overheads and moving between markets.
What are online retailers?
Businesses (like Amazon) that sell goods online directly to consumers.
What are benefits of online distribution for consumers?
Lower costs, 24/7 shopping, large selection, and convenience.
What are benefits of online distribution for businesses?
Lower costs, global reach, automated processes, and 24/7 operations.
What are disadvantages of online distribution?
More competition, lack of human contact, delivery dependence, security risks.
What is B2C?
Selling of goods by businesses to consumers.
What is B2B e-commerce?
Business-to-business sales online, often using software to find suppliers and automate transactions.
What is direct selling?
Where businesses sell their products directly to consumers.
What are wholesalers?
Persons or businesses that buy goods from manufacturers and sell them in smaller quantities to retailers.
Agent or broker
Intermediary that brings together buyers & sellers.
How does the nature of a product affect its distribution channel?
Different products need different channels; for example, services are sold directly to consumers.
Why do businesses prefer direct selling as a distribution channel?
Using intermediaries adds costs, so businesses aim to minimize them.
How does the market affect distribution channel choice?
Mass markets use intermediaries; niche markets often sell directly.
Why is control important in distribution?
Producers of exclusive products want to protect their brand by controlling where their goods are sold.
What is the importance of place in the marketing mix?
Ensures products are available in the right place at the right time, affecting convenience and sales.
What happens if a business does not have an effective place strategy?
Customers may not find the product easily, leading to lost sales and decreased competitiveness.
What are the main types of distribution channels?
Direct selling, retailers, wholesalers, online distribution, and agents or brokers.
Why do many producers use multiple distribution channels?
To maximize sales, reach different customer segments, and provide flexibility in product availability.
What is the difference between direct and indirect distribution?
Direct distribution means selling directly to consumers, while indirect distribution involves intermediaries such as retailers and wholesalers.
What are the advantages of using retailers?
Retailers provide convenience, bulk breaking, additional services, and direct access to consumers.
What factors influence a business’s choice of distribution channel?
Product nature, cost, target market, control needs, competition, and technological advancements.
What are the disadvantages of using retailers?
Retailers take a share of profits, may not promote the product effectively, and can influence brand image.
What are the advantages of using wholesalers?
Wholesalers store goods, break bulk, and distribute products to multiple retailers, reducing logistical costs for manufacturers.
What are the disadvantages of using wholesalers?
They add costs to the distribution process and may not market the product effectively to retailers.
How has online distribution changed consumer behavior?
Consumers now expect 24/7 availability, convenience, and a wider choice with competitive pricing.
What are the advantages of direct selling?
Greater control over branding, direct customer relationships, and higher profit margins by avoiding intermediaries.
What are the disadvantages of direct selling?
Higher marketing and logistical costs and limited reach.
How do agents or brokers help in distribution?
They connect buyers and sellers, offering expertise in specific markets.
Why do businesses selling high-end or exclusive products control distribution?
To protect brand image, maintain premium pricing, and ensure a high level of customer service.
Why do mass-market products use intermediaries?
To reach a large audience efficiently, ensuring widespread availability and affordability.
E- commerce or e- tailing
Use of electronic systems to sell goods & services.
