distribution

Question 1

define distribution

Answer 1

• Process in getting the right product/service to consumers in the right place

Question 2

advantages of online distribution for BUSINESS

Answer 2

+ Do not have to meet the costs of operating retail stores
+ Lower start-up costs make it easier for small businesses to launch
+ Can make sales 24/7
+ Can offer goods to a much wider market
+ Enables niche products to reach a wider audience
• Builds relationships through more personalized service
- target specific markets easier

Question 3

advantages of online distribution for CUSTOMERS

Answer 3

\+	Benefit from lower prices as businesses pass on lower costs
\+	Can shop 24/7
\+	Usually a wider choice is available
\+	Can compare products
•	Opportunities for personalisation

Question 4

influences on distribution

Answer 4

• Some want control of distribution for image purposes
• Others want wide-scale distribution for consumer convenience
• Social change
• Nature of the product i.e. The business would want the fastest distribution method if the product goes out of date quickly
• Scope/scale; products sold internationally may require larger distribution

Question 5

B2B

Answer 5

business to business

• where a business sells to retailers which then make sales
• more intermediaries
• higher costs = higher price
• cant be competitive on price = lose customers to competitors
• cannot control how the product is perceived by customers e.g retailer might always have the product on sale
• Selling to other businesses
• Less style, more substance
• Greater focus on quality/low prices
• Tailored services, reliable
• Build relationships
• Examples of B2B marketing: business banking, wholesaling, commercial property

Question 6

B2C

Answer 6

business to customer

• selling to the public
• brand and image are vital
• mass distribution/larger markets as they can sell online
• One off purchase
• Examples of B2C marketing: retailing, family tourism, personal banking