Marketing - Place

Question 1

Name all 4 methods of distribution

Answer 1

1. Road/Land
2. Sea
3. Rail
4. Air

Question 2

• Give the definition of road distribution
• Give 2 advantages and disadvantages

(methods of distribution)

Answer 2

• products shipped by a vehicle

ADVANTAGE
- Door to Door delivery
- Cheapest method of distribution

DISADVANTAGE
- Can be slow → lower customer satisfaction
- Not environmentally friendly

Question 3

• Give the definition of rail distribution
• Give 2 advantages and disadvantages

(methods of distribution)

Answer 3

• products being transported by rail e.g trains

ADVANTAGE
- often quicker than road
- Can transport large quantities

DISADVANTAGE
- often stations are not near retailers/customers → still requires another mode of transport.

Question 4

• Give the definition of sea distribution
• Give 2 advantages and disadvantages

(methods of distribution)

Answer 4

• products being transported by sea e.g - boat

ADVANTAGE
- can transport items in large quanities using shipping containers

DISADVANTAGE
- very harmful to the environment
- Slow and time consuming

Question 5

• Give the definition of air distribution
• Give 2 advantages and disadvantages

(methods of distribution)

Answer 5

• products being transported by air e.g - planes

ADVANTAGE
- can transport items worldwide
- quicker than sea

DISADVANTAGE
- very expensive
- can’t transport lare items

Question 6

• Define E-Commerce
• Give three advantages and disadvantages of E-Commerce

Answer 6

Method of buying and selling goods and services online

ADVANTAGES
* online shopping 24/7 → increased profit
* can sell to global customers → wider customer base
* discounts can be given to customers → increases sales

DISADVANTAGES
* expensive → need to pay for an internet provider
* expensive → website has to made/maintained
* website has to be mainted → staff need to be trained

Question 7

Describe 4 factors businesses should consider when choosing a location

Answer 7

A location with;

• Demand from nearby customers who want their goods/services
• Cheap price or rent
• Nearby suppliers of raw materials to reduce lead time and transport costs.
• Possible eligiblity for a government grant

Question 8

List and Describe 4 methods of Direct selling

Answer 8

1. Personal selling - Salesperson sells door-to-door
2. Shopping channels - Business sells products on a TV using dedicated channels
3. Direct mail - Business sends brochures to customers via post or magazines/newspapers.
4. Mail order - Business sells its products via printed catalogues sent to consumers.