Marketing mix:place 3.3.3 Flashcards
What is the role of place in the marketing mix
After decision on the product, You will have to find a suitable place to sell. For example, Expensive chocolate would not necessarily sell well in a local shop
What is the advantage of selling directly to customers
Very simple
Lower price if sold directly to customers because cutting out another things such as retailers
Products can be sold through mail or internet
What is the disadvantage of selling directly to customers
Not suitable for products which are not easy to send through post
Consumers are less likely to live near factory and go there to buy the products
What is the advantage of using retailers as the only intermediary
Reduced distribution cost compared to selling directly to customers
Producer can sell larger quantities to retailers
What is the disadvantage of using retailers as the only intermediary
No direct contact with customers
Price is often higher than direct selling because retailer has to cover costs and make profit
What is the advantage of using whole sailers and retailers as the intermediary
Wholesaler saves storage space for smaller retailer and reduce storage costs
What is the disadvantage of using whole sailers and retailers as the intermediary
Wholesaler may not have full range of products to sell
Whole sales may be a long way from small shops
What is the advantage of using agents as the intermediary along with whole sailers and retailers
Manufacturer unaware of best way to sell product
Agents aware of local conditions and most effective way to sell
What is the disadvantage of using agents as the intermediary along with whole sailers and retailers
Producer has less control of the way the product is sold to customers
What are some things to consider when choosing distribution channel to use
What type of product?
How often is the product purchased?
How expensive is the product?
Where are customers located
What are different types/methods of distribution
Department stores
Supermarkets
E-Commerce
What are the advantages and disadvantages of E commerce to business
Lower employment costs
Website can encourage customers to buy more
Delivery costs
No contact with customers
What are the advantages and disadvantages of E commerce to consumer
Online shopping is convenient
Can buy from shops all around the world
Requires Internet connection
No explanation on how products work by staff
