Marketing - Place Flashcards
Factors affecting channel of distribution
- finance available
- desired image for product
- shelf life of product
- legal restrictions
3 methods of direct selling
- e-commerce
- direct mail
- personal selling
Methods of direct selling - e-commerce
\+ entire range shown \+ global geographical reach \+ 24/7 sales - time + money to make website - delivery costs - customers wary of giving personal details
Methods of direct selling - mail order
\+ credit facilities offered to customers \+ browse at home at convenience \+ save on staffing and store costs - glossy catalogues expensive - not environmentally friendly
Methods of direct selling - personal selling
+ demonstration and explanation
+ feedback can be gathered
- staffing costs and commission
- nuisance to customers and won’t listen
Retailers advantages and disadvantages (for manufacturer)
+ promote product for manufacturer
+ employ sales assistants to boost product sales
- take cut of profit
- alter price which effects image of product
3 types of retailers
- hypermarkets
- online retailers
- discount stores
Types of retailers - hypermarkets
+ open 24/7
+ huge range
- lack of high street competition = poor quality
Types of retailers - online retailers
+ worldwide market
+ selling 24/7
- can’t try or touch product
- delivery charges
Types of retailers - discount stores
+ lower prices
- limited product range
- bad image
Wholesalers advantages and disadvantages (for manufacturers)
+ bought in bulk, no smaller deliveries
+ packaging and displaying is carried out by wholesaler
- less profit as wholesalers take cut
- loses control of how product is marketed
Wholesaler advantages and disadvantages (for retailers)
+ save on storage facilities as buying small quantities
+ promotions from wholesalers
- more expensive as wholesalers add margin for profit
- miss out on exclusivity deals from manufacturer
