Place - Channels Of Distributuon

Question 1

Place

Answer 1

It’s about DISTRIBUTION not the actual place it is

Question 2

Importance of getting the goods to the customer

Answer 2

In the RIGHT PLACE
in the RIGHT QUANTITY
at the RIGHT TIME

It’s the DEA BREAKER of the 4ps = without this, none of the other Ps are relevant

Question 3

1) Traditional route of distribution

Answer 3

Manufacturer > wholesaler > retailer > customer

Wholesaler - pricing EOS, they flog stock in smaller quantities as they BUY IN BULK + sell off for profit

Retailer - retailers are so big that they can BUY IN BULK + cut out the wholesaler

Question 4

2) Regional distribution centres as a wholesaler

Answer 4

Manufacturer > retailer > customer

Question 5

3) Now - distribution method

Answer 5

Manufacturer > customer

= Internet means it’s more direct 
= bespoke job production goods
= market goods
= done to eliminate intermediaries/middle man
= farmers to the public

Question 6

Why have distribution channels changed?

Answer 6

• The business size
• EOS
• use of the internet
• the concept of 24/7 shopping
  ^^^^^ can have smaller and more regular deliveries
  ^^^^^ lose technical and purchasing EOS
  ^^^^^ I.e. 24 hour Tesco in London

Question 7

Things to consider when physically distributing

Answer 7

• The urgency to get your item to its place (the item could be perishable - refrigeration technology)
• bulk quantities by train or rail
• regularity or restocking and new orders needed
• the cost to it all (the VALUE of the good VS the COST of transporting it)

Question 8

Placement

Answer 8

Production > the distribution > the customer

Question 9

Logistics

Answer 9

The supply chain management ( I.e. materials )

To warehousing

To production

Distribution

To the customer

Question 10

Impulse purchases

Answer 10

Lots of outlets for a Cadbury dairy milk across Stratford as it’s a IMPULSE PURCHASE.

• convenience of them - THEYRE EVERYWHERE
• need to be everywhere as a product to be able to be impulse bought
• there’s a mass appeal and market for them

Question 11

How it’s different for services

Answer 11

There’s NO channel of distribution with a service
= you go to it and you consume it I.e. go to the barbers and consume the haircut

= on the spot
= the OUTLET/PREMISES is the PRODUCT
= the LOCATION of the hotel/golf course is the placement

Question 12

online and digital distribution

Answer 12

customers can now contact producers directly or through call centres to place orders now
= due to improvements in telecommunications

more convienent way of hopping for busy people

deliveries then made directly yo the customer by post or courier service (physical distribution using courier businesses)

click and collect services, online sales = due to the growth of the internet and boradband access