place

Question 1

place

Answer 1

• distribution of goods and services=> methods used
• where business sells their products=> eg. shop, online

Question 2

importance of place

Answer 2

• establish certain brand identity
• establish a perception in customers mind => eg. luxury
• encourage higher consumption

Question 3

distribution channel

Answer 3

• route the product takes to reach final customer
• wider distribution = ability to reach wider market

Question 4

M - W - R - C

Answer 4

• 𝐭𝐫𝐚𝐝𝐢𝐭𝐢𝐨𝐧𝐚𝐥
• W buys large quantities from M => sell in smaller quantities to R
• benefits manufacturer => sells in bulk
• benefits wholesaler => run promotion on supplier behalf => increased sales
• benefits small retailers => purchase at “wholesale” prices => no storage costs - profit

Question 5

M - R - C

Answer 5

• 𝐦𝐨𝐝𝐞𝐫𝐧
• big retailers (eg. supermarkets) bulk buy from manufacturer => purchases & sells products competitively => benefits customer
• 𝗿𝗲𝗱𝘂𝗰𝘁𝗶𝗼𝗻 𝗼𝗳 𝘄𝗵𝗼𝗹𝗲𝘀𝗮𝗹𝗲𝗿 => cuts costs for large businesses => economies of scale
• 𝗱𝗼𝗲𝘀𝗻’𝘁 𝗯𝗲𝗻𝗲𝗳𝗶𝘁 𝘀𝗺𝗮𝗹𝗹𝗲𝗿 𝗿𝗲𝘁𝗮𝗶𝗹𝗲𝗿𝘀 => can’t directly obtain products => can’t compete with prices

Question 6

M - C

Answer 6

• 𝐝𝐢𝐫𝐞𝐜𝐭 𝐬𝐞𝐥𝐥𝐢𝐧𝐠 - charge lower prices - M keep more profits => eg. junk mail, internet
• attract customers through competitive pricing
• eg. books online - 40% cheaper than in stores

Question 7

internet marketing

Answer 7

• 𝗶𝗻𝘁𝗲𝗿𝗻𝗲𝘁 𝘀𝗮𝗹𝗲𝘀 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗲 𝗺𝗮𝘀𝘀𝗶𝘃𝗲𝗹𝘆 => Nov 2014 - over £7 billion in UK => up 9% previous year
• 𝗮𝗺𝗮𝘇𝗼𝗻 opened up distribution centres all over the UK => employs thousands of unemployed
• 𝗝𝗼𝗵𝗻 𝗟𝗲𝘄𝗶𝘀 - 40% of online sales in Xmas 2014 - through ‘click & collect’
• internet shop costs few hundred £s

Question 8

advantages of internet marketing

Answer 8

• 𝐰𝐢𝐝𝐞𝐧𝐬 𝐩𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 𝐦𝐚𝐫𝐤𝐞𝐭𝐬 - increased sales & profits
• 𝐦𝐨𝐫𝐞 𝐩𝐞𝐨𝐩𝐥𝐞 𝐨𝐧𝐥𝐢𝐧𝐞 𝐬𝐡𝐨𝐩 - important factor
• 𝐢𝐦𝐩𝐫𝐨𝐯𝐞 𝐢𝐦𝐚𝐠𝐞 - well considered & up-to-date website
• 𝐨𝐩𝐞𝐧 𝟐𝟒/𝟕
• 𝐜𝐨𝐫𝐞 𝐦𝐚𝐫𝐤𝐞𝐭𝐢𝐧𝐠 𝐭𝐨𝐨𝐥 𝐟𝐨𝐫 𝐬𝐨𝐦𝐞 - eg. amazon

Question 9

disadvantages of internet marketing

Answer 9

• 𝐞𝐱𝐩𝐞𝐧𝐬𝐢𝐯𝐞 - £10,000 => difficult for small businesses
• 𝐧𝐨𝐭 𝐜𝐨𝐬𝐭-𝐞𝐟𝐟𝐞𝐜𝐭𝐢𝐯𝐞 - has to generate enough profit for initial expenditure
• 𝐧𝐞𝐠𝐚𝐭𝐢𝐯𝐞 𝐢𝐦𝐚𝐠𝐞 - out-of-date/ poorly constructed => lose of consumer
• 𝐩𝐞𝐫𝐬𝐨𝐧𝐚𝐥 𝐬𝐞𝐫𝐯𝐢𝐜𝐞 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 - not useful
• 𝐭𝐞𝐜𝐡𝐧𝐢𝐜𝐚𝐥 𝐩𝐫𝐨𝐛𝐥𝐞𝐦𝐬 - lose reputation & sales
• 𝐩𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 𝐜𝐮𝐬𝐭𝐨𝐦𝐞𝐫𝐬 𝐧𝐨𝐭 𝐚𝐰𝐚𝐫𝐞 - don’t use internet

Question 10

IM effects on business - advantages

Answer 10

• 𝐫𝐞𝐝𝐮𝐜𝐞 𝐧𝐞𝐞𝐝 𝐟𝐨𝐫 𝐬𝐭𝐚𝐟𝐟 - eg. online banking
• 𝐚𝐝𝐝𝐬 𝐟𝐥𝐞𝐱𝐢𝐛𝐢𝐥𝐢𝐭𝐲 - businesses can reach customers 24/7
• 𝐜𝐮𝐬𝐭𝐨𝐦𝐞𝐫 𝐝𝐚𝐭𝐚 - target customers effectively
• 𝐫𝐞𝐚𝐜𝐡 𝐰𝐨𝐫𝐥𝐝-𝐰𝐢𝐝𝐞 𝐚𝐮𝐝𝐢𝐞𝐧𝐜𝐞

Question 11

IM effect on business - disadvantages

Answer 11

• 𝐦𝐚𝐢𝐧𝐭𝐚𝐢𝐧𝐢𝐧𝐠 𝐰𝐞𝐛 𝐪𝐮𝐚𝐥𝐢𝐭𝐲 - costly => priority if want to compete
• 𝐜𝐮𝐬𝐭𝐨𝐦𝐞𝐫 𝐨𝐫𝐢𝐞𝐧𝐭𝐚𝐭𝐞𝐝 - respond to customer wishes

Question 12

IM effect on customers - advantages

Answer 12

• 𝐜𝐨𝐧𝐯𝐞𝐧𝐢𝐞𝐧𝐜𝐞 - easier to shop from home
• 𝐡𝐨𝐦𝐞 𝐝𝐞𝐥𝐢𝐯𝐞𝐫𝐲 - saves time => eg. groceries
• 𝐨𝐩𝐞𝐧 𝟐𝟒/𝟕
• 𝐧𝐨 𝐭𝐫𝐚𝐯𝐞𝐥 𝐟𝐞𝐞
• 𝐯𝐢𝐞𝐰 𝐰𝐢𝐝𝐞 𝐫𝐚𝐧𝐠𝐞 𝐨𝐟 𝐩𝐫𝐨𝐝𝐮𝐜𝐭𝐬
• 𝐛𝐮𝐲 𝐩𝐫𝐨𝐝𝐮𝐜𝐭𝐬 𝐟𝐫𝐨𝐦 𝐝𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐭 𝐜𝐨𝐮𝐧𝐭𝐫𝐢𝐞𝐬 - more range
• 𝐜𝐨𝐦𝐩𝐚𝐫𝐞 𝐩𝐫𝐢𝐜𝐞𝐬/𝐫𝐞𝐚𝐝 𝐫𝐞𝐯𝐢𝐞𝐰𝐬 - choose effectively

Question 13

IM effect on customers - disadvantages

Answer 13

• 𝐝𝐞𝐥𝐢𝐯𝐞𝐫𝐲 𝐝𝐞𝐥𝐚𝐲
• 𝐟𝐫𝐚𝐮𝐝 - security details get stolen
• 𝐫𝐞𝐭𝐮𝐫𝐧𝐢𝐧𝐠 𝐩𝐫𝐨𝐝𝐮𝐜𝐭 - hassle of refunding
• 𝐥𝐚𝐜𝐤 𝐨𝐟 𝐚𝐜𝐜𝐞𝐬𝐬 - don’t sell to specific locations

Question 14

multi-channel distribution

Answer 14

• a combination of distribution channels used
• more effective a business’ distribution is the more profit => positive impact on stakeholders
  𝗔𝗽𝗽𝗹𝗲
• has own shops in major cities
• sells through huge retailers
• has online presence
  => Apple is maximising many advantages from each DC