Chapter 38: Place (Version)

Question 1

What is ‘Place’ in the marketing mix?

Answer 1

Place refers to the location where people can buy products.

Question 2

What are retailers?

Answer 2

Businesses that buy goods from manufacturers & wholesalers and sell them in smaller quantities to consumers

Question 3

Why is getting products in the right place at the right time important?

Answer 3

If businesses cannot do this, they are unlikely to be successful.

Question 4

What is a distribution channel?

Answer 4

The route taken by a product from the producer to the customer.

Question 5

What is an intermediary?

Answer 5

Person or organisation that helps to arrange agreements or business deals between other people or organisations.

Question 6

What is bulk breaking?

Answer 6

Dividing a large quantity of goods received from a supplier into smaller quantities before selling them on to customers.

Question 7

What services can retailers add to products?

Answer 7

Packing, delivery, repair services, product information, guarantees, gift wrapping.

Question 8

What are independents in retailing?

Answer 8

Small outlets often owned by sole traders.

Question 9

What are supermarkets?

Answer 9

Large stores selling up to 20,000 product lines, often located on town outskirts with free parking.

Question 10

What are department stores?

Answer 10

Large stores split into departments, often found in city centers.

Question 11

What are multiples or chain stores?

Answer 11

Chains of stores with standardized products, pricing, layout, and staff training.

Question 12

What are superstores or hypermarkets?

Answer 12

Very large stores selling a wide range of goods under one roof, often with minimal services.

Question 13

What are kiosks and street vendors?

Answer 13

Small outlets selling limited goods, often in high-footfall areas.

Question 14

What are market traders?

Answer 14

Small businesses selling from market stalls with low overheads and moving between markets.

Question 15

What are online retailers?

Answer 15

Businesses (like Amazon) that sell goods online directly to consumers.

Question 16

What are benefits of online distribution for consumers?

Answer 16

Lower costs, 24/7 shopping, large selection, and convenience.

Question 17

What are benefits of online distribution for businesses?

Answer 17

Lower costs, global reach, automated processes, and 24/7 operations.

Question 18

What are disadvantages of online distribution?

Answer 18

More competition, lack of human contact, delivery dependence, security risks.

Question 19

What is B2C?

Answer 19

Selling of goods by businesses to consumers.

Question 20

What is B2B e-commerce?

Answer 20

Business-to-business sales online, often using software to find suppliers and automate transactions.

Question 21

What is direct selling?

Answer 21

Where businesses sell their products directly to consumers.

Question 22

What are wholesalers?

Answer 22

Persons or businesses that buy goods from manufacturers and sell them in smaller quantities to retailers.

Question 23

Agent or broker

Answer 23

Intermediary that brings together buyers & sellers.

Question 24

How does the nature of a product affect its distribution channel?

Answer 24

Different products need different channels; for example, services are sold directly to consumers.

Question 25

Why do businesses prefer direct selling as a distribution channel?

Answer 25

Using intermediaries adds costs, so businesses aim to minimize them.

Question 26

How does the market affect distribution channel choice?

Answer 26

Mass markets use intermediaries; niche markets often sell directly.

Question 27

Why is control important in distribution?

Answer 27

Producers of exclusive products want to protect their brand by controlling where their goods are sold.

Question 28

What is the importance of place in the marketing mix?

Answer 28

Ensures products are available in the right place at the right time, affecting convenience and sales.

Question 29

What happens if a business does not have an effective place strategy?

Answer 29

Customers may not find the product easily, leading to lost sales and decreased competitiveness.

Question 30

What are the main types of distribution channels?

Answer 30

Direct selling, retailers, wholesalers, online distribution, and agents or brokers.

Question 31

Why do many producers use multiple distribution channels?

Answer 31

To maximize sales, reach different customer segments, and provide flexibility in product availability.

Question 32

What is the difference between direct and indirect distribution?

Answer 32

Direct distribution means selling directly to consumers, while indirect distribution involves intermediaries such as retailers and wholesalers.

Question 33

What are the advantages of using retailers?

Answer 33

Retailers provide convenience, bulk breaking, additional services, and direct access to consumers.

Question 34

What factors influence a business’s choice of distribution channel?

Answer 34

Product nature, cost, target market, control needs, competition, and technological advancements.

Question 35

What are the disadvantages of using retailers?

Answer 35

Retailers take a share of profits, may not promote the product effectively, and can influence brand image.

Question 36

What are the advantages of using wholesalers?

Answer 36

Wholesalers store goods, break bulk, and distribute products to multiple retailers, reducing logistical costs for manufacturers.

Question 37

What are the disadvantages of using wholesalers?

Answer 37

They add costs to the distribution process and may not market the product effectively to retailers.

Question 38

How has online distribution changed consumer behavior?

Answer 38

Consumers now expect 24/7 availability, convenience, and a wider choice with competitive pricing.

Question 39

What are the advantages of direct selling?

Answer 39

Greater control over branding, direct customer relationships, and higher profit margins by avoiding intermediaries.

Question 40

What are the disadvantages of direct selling?

Answer 40

Higher marketing and logistical costs and limited reach.

Question 41

How do agents or brokers help in distribution?

Answer 41

They connect buyers and sellers, offering expertise in specific markets.

Question 42

Why do businesses selling high-end or exclusive products control distribution?

Answer 42

To protect brand image, maintain premium pricing, and ensure a high level of customer service.

Question 43

Why do mass-market products use intermediaries?

Answer 43

To reach a large audience efficiently, ensuring widespread availability and affordability.

Question 44

E- commerce or e- tailing

Answer 44

Use of electronic systems to sell goods & services.