Place, Ecommerce and distribution channels

Question 1

Why is place important?

Answer 1

• need to be close to suppliers, customers and competition

Question 2

Traditional distribution channel stages?

Answer 2

Manufacturer, wholesaler, retailer, consumer

Question 3

Advantages of traditional distribution channel

Answer 3

• cheap for retailers

Question 4

Disadvantages of traditional channel of distribution

Answer 4

• long, complex channel

- lower profit margins

Question 5

Stages in modern channel of distribution

Answer 5

Manufacturer, retailer, consumer

Question 6

Advantages for modern channel of distribution

Answer 6

• less complex

- higher profit margins

Question 7

Disadvantages of modern channel of distribution

Answer 7

• manufacturer could set high price

Question 8

Stages of direct channel of distribution=but ion (Ecommerce)

Answer 8

Manufacturer, consumer

Question 9

Advantages of direct channel of distribution

Answer 9

• higher profit

- better customer service

Question 10

Disadvantages of direct channel of distribution

Answer 10

• impersonal

- security problems

Question 11

What influences how a product is sold?

Answer 11

• customers

- price of goods

Question 12

What is Ecommerce?

Answer 12

Selling a good or service directly to customers using the Internet

Question 13

Why has Ecommerce developed?

Answer 13

• easy and quick

- reduces operating costs

Question 14

Advantages of Ecommerce on start ups?

Answer 14

• can increase awareness of product

- reduces operating costs

Question 15

Disadvantages of Ecommerce on start ups?

Answer 15

• no passing trade which reduces overall sales