Marketing: Place

Question 1

Advantages of wholesaler

Answer 1

• The wholesaler buys in bulk from the producer
• Wholesalers will advertise and promote the product to retailers
• The transport cost to the retailer is paid by the wholesaler
• Wholesalers pay for transport costs

Question 2

Cons of wholesaler

Answer 2

• Another middleman so more profit is taken away from the producer
• The producer loses even more control of the marketing mix

Question 3

Advantages of retailer

Answer 3

• Consumers can see and try the product before buying it
• The cost of holding inventories of the product Is paid by the retailer
• The retailer will pay for advertising and other promotional activities

Question 4

Disadvantages of retailer

Answer 4

• The retailer takes some of the profit away from the producer
• Producers lose some control of the marketing mix
• The producer must pay for delivery costs to the retailers

Question 5

Define promotion

Answer 5

Marketing activities used to communicate with customers and potential customers to inform and persuade them to buy a business’s products

Question 6

Opportunities of e-commerce to businesses

Answer 6

Increased market – the business is able to sell its goods and services to more consumers
Reduced costs – The staffing and other costs of shops are saved
Better information – the website can provide potential consumers with all the information they need about the goods and services

Question 7

Threats of e-commerce for businesses

Answer 7

Increase competition – competitors can now be from any part of the world, not just the local market
Unfamiliarity – consumers are less likely to buy products from new business they don’t know

Question 8

Opportunities of e-commerce to consumers

Answer 8

Convenience – Consumers can order their products from the comfort of their own homes
Wider choice – Consumers are now able to buy goods which they would not have had access to if they were only able to uses local shops
Lower prices – competition is worldwide and this reduces prices

Question 9

Threats of e-commerce for consumers

Answer 9

Fraud – A website might take a consumer’s money and not deliver goods
Hacking – A consumer’s personal details or bank account details might be ‘stolen’
Returning items – it can be inconvenient and expensive to return goods which do no meet the consumer’s needs
No personal service – There is no face-to-face contact between the consumer and seller

Question 10

Define legal controls

Answer 10

laws that control the activity of businesses

Question 11

What does legal control do?

Answer 11

• Protect consumers from faulty and dangerous goods
• Prevent the businesses from using advertising to mislead consumers
• Protect consumers from being exploited in industries where there is little or no competition