place Flashcards
place definition
this is where the business sells their good/services to the consumer - where the customer can buy the product e.g. online, retail outlet
factors which affect place decision (6)
transport links
-most business will want to be accessible by public transport - customers and staff can get there easily
environmental impact
-businesses need to avoid harming environment when possible e.g. cutting down trees
competition
- close to competitors=steal customers, far from competitors=unrivaled customer flow
population (customers)
-will impact number of customers and ability to hire quality staff
close to suppliers
-less delivery range means less expensive delivery charge
parking facilities
-can customers park at or nearby shop? could restrict access for some customers.
what is e-commerce
if a business decides that a physical place (shop front) is not suitable for their product, or their customers needs and wants, they may decide to sell online. This is called e-commerce
Using e-commerce gives businesses access to customers all over the world.
This is known as being able to reach a global market.
e-commerce advantages to business
advantages to business - access to global market, business can be
better known
a business using e-commerce can get ahead of rivals
no need to pay for physical shop
reduced advertising cost
business is open 24/7
disadvantages of e-commerce to business
- designing and keeping a website up-to-date is expensive
- market research needs to be very detailed to meet customers needs
- packing and distributing of products can be very expensive
- not all businesses target customers have internet access
- business will often rely on a 3rd party to complete distribution
what is distribution
distribution is the act of moving a product from onr place to another, a business must decide how they are going to do this
what are the methods of distribution
air, rail. road and sea
factors affecting selection of distribution method (5)
- size of product
- the distance of delivery
- how quickly the item is required
- is insulation required?
- shelf life of product
advantages of air distribution
- quick way to transport large amounts of products around the world
- large amounts of products can be transported if they fir the planes dimensions
advantages of rail distribution
- easier to transport larger products than it would be on the road
- larger quantities can be transported than on the road - adding carriges
- rail freights emit 1/3 of the CO2 which the road does
advantages of road distribution
- quick delivery for short distances
- the products can be delivered directly to the customers door.
- can be cheaper than other methods
advantages of sea distribution
- you can transport larger products by boat, regardless of dimensions
- products can be transported anywhere in the world
advantages of e-commerce to the customer
- customers have a huge range of brands/goods to choose from
- they can ‘shop around’ for the best price
- internet prices are often less expensive than in shops
- customers can shop from the comfort of their house
- they can shop 24/7
disadvantages of e-commerce to customer
- customers need to be online and know how to use the internet
- it can be difficult to access the quality before you buy
- inconvenient to return goods
- security risks of buying online
- delivery charge and wait time
disadvantages of air distribution
- limited to size of product you can send
- expensive
- large CO2 emissions
- still need to be transported from airport, through security and to the warehouse/customer
