Place

Question 1

Why is place important?

Answer 1

• the place where a product is sold can be used as a strategy to establish brand identity
  -For example haagen daz only sold in upmarket retailers so they could have the image of being premium
  -some company’s offer retailers more money or stock so they can have pride of place in retailers shelves

Question 1

What is the definition of place?

Answer 1

the market place where buyers and sellers meet and exchange payment in return for goods or services

Question 2

What is the traditional distribution channel?

Answer 2

Manufacturer - wholesaler - retailer- consumer

Question 3

What is distributing through wholesalers and how does it impact retailers and manufacturers?

Answer 3

• role of buying large quantities from manufacturers and selling small quantities to retailers
• impact to manufacturer- convenience of selling in bulk
• impact to retailer- can buy at own convenience, don’t have to stock large quantities

Question 4

What is distribution through from manufacturer to retailer and how does it impact them?

Answer 4

• decline in the use of wholesalers as large retail businesses dominate
• retailers buy big quantities from manufacturers
• impact to retailer- cuts costs as they benefit from economies of scale

Question 5

What is distribution through direct selling and how does it impact manufacturer?

Answer 5

• over junk mail, internet, own stores, catalogs
• manufacturer can sell at a lower price
• eg iTunes sells music cheaper than cd stores
• impact to manufacturer- allows them to keep more of the profit, attract customers through competitive prices and convenience.