Place

Question 1

What is place

Answer 1

1 market place - where buyer and seller meet and exchange payment for good/service
2 Where a business sells its products
3 What methods are used to distribute goods to customer

Question 2

Why is place important

Answer 2

1 where a product is sold can be used to establish a brand identity eg Hagen dads ice cream when launched was only sold in high end shops to establish it as a supreme brand
2 important to secure prime selling spaces

Question 3

What is distribution

Answer 3

how goods get to the customer

Question 4

What were traditional methods of distribution

Answer 4

manufacturer - wholesaler - retailer - customer chain

Question 5

What has this chain been replaced with

Answer 5

Direct selling through internet, magazines, catalogues - allows business to supply customer easier and cheaper

Question 6

Why are wholesalers being cut from equation
Who does this impact on

Answer 6

growth in size of retailers and improvements in stock ordering methods
This puts pressure on small retailers who still rely on wholesalers

Question 7

Identify 3 methods of distribution

Answer 7

1 wholesaler
2 manufacturer to retailer
3 direct selling - manufacturer to consumer

Question 8

Describe using a wholesaler

Answer 8

1 traditional method
2 wholesalers role is to breaking bulk - buy large quantities from manufacturer sell small quantities to retailer
3 good for wholesaler as its distribution costs reduce having only to drop at 1 site
4 small retailer doesn’t have to store lots of stock

Question 9

Describe manufacturer to retailer

Answer 9

1 becoming more common
2 manufacturers supply large quantities to big retailers
3 reduction in length of distribution chain cuts costs

Question 10

Describe direct selling - manufacturer to consumer

Answer 10

1 allows manufacturer to charge lower prices which attract more customers