Marketing - 3.3.3 (Place)

Question 1

Ways of getting to the consumer

Answer 1

• Producer to consumer (direct selling)
• producer to retailer to consumer
• producer to wholesaler to retailer to consumer
• producer to agent to wholesaler to retailer to consumer

Question 2

Producer to consumer (direct selling) pros and cons

Answer 2

Advantages:
Simple
Lower price for customer
Can build good customer relationships - loyalty

Disadvantages
Customers do not live near factory
Hard to transport to many people

Question 3

Producer to retailer to consumer

Answer 3

Advantages:
Larger orders from retailers
Lower distribution costs

Disadvantages:
No direct contact with customer

Question 4

Producer to wholesaler to retailer to customer

Answer 4

Advantages:
Lower storage and transport costs
Manufacturer and retailer can get good advice from wholesaler

Disadvantages:
Expensive for retailer
Longer time for product to reach retailer

Question 5

Producer to agent to wholesaler to retailer to consumer

Answer 5

Advantages:
Agents know how to sell in other market

Disadvantages:
Less control of product