place Flashcards
1
Q
what is place in a business?
A
the path taken by a product as it passes from the producer to the final consumer
2
Q
order of distribution channel
A
- manufacturer
- agent
- wholesaler
- retailor
- consumer
3
Q
What is the role of agents in business?
A
- Agents represent businesses to gain sales without taking ownership of goods.
- usually work on commision making a % of whatever they sell
4
Q
why are agents useful in foreign markets
A
- reduce risk of unknown market
- negotiate on behalf of seller
4
Q
what are the business factors affecting distribution channels
A
- cost
- type of product
- control
5
Q
what are pros of using a Factory – businesses own retail stores/showrooms – customer’s home system
A
- Direct control over the process
- use of well-trained staff
- more profits
6
Q
what are the pros of using a Factory – independent retailers – customer system
A
- no cost over maintaining a retail outlet
- displayed to more consumers
- already well known store
6
Q
What is the role of wholesalers in the distribution process?
A
Wholesalers buy in bulk from manufacturers and break it into smaller quantities for retailers, providing faster supply services to smaller retailers.
7
Q
what are example of types of retail stores
A
- department stores (john lewis)
- supermarkets (tesco)
- convenience stores (londis)
- online stores (amazon)
