Place - Element Of The Marketting Mix

Question 1

Distribution channel

Answer 1

Describes how the ownership of a product passes from the producer to the final custoemr

Question 2

Place

Answer 2

Describes how a product is distributed to its customers

Question 3

Different levels of distribution

Answer 3

Zero level - producer - customer
One level - producer - retailer - customer
Traditional/two level channel - producer - wholesaler - retailer - customer Traditional

Question 4

Wholesalers

Answer 4

Buy large quantities of products from producers and sell smaller quantities onto retailers. Producers benefit as it enables them to transport their products to fewer destinations.

Question 5

Retailers

Answer 5

Buy smaller quantity of stock from producers or wholesaler to sell onto customers. Offer advice to customer and may provide credit to help customer buy expensive items.

Question 6

Other approaches to distribution

Answer 6

E-commerce and m commerce - cost effective. Click and collect or may be delivered.
Telesales - selling products via telephone. Persuade them to buy.

Question 7

Choosing the right channel

Answer 7

Nature of product
Cost of distribution
Managing how products are sold

Question 8

Nature of the product

Answer 8

Highly complex, technical products are often distributed using intermediaries as they can offer advice and support and after sales service to customers. Products sold frequently can be distributed to many outlets so customers buy them easily. Products sold directly to customers - insurance policies, no physical product to obtain.

Question 9

Cost of distribution

Answer 9

Using intermediaries adds to the cost and may result in higher prices and lower sales. Business only prepared to use if they believe intermediaries will bring sufficient benefits

Question 10

Managing how products are sold

Answer 10

A business may have less control over how products are sold if they use independent retailers. Products may be sold at low prices - damaging business image. Some businesses choose to operate own shop maintaining exclusive image.

Question 11

Importance of a integrated marketing mix

Answer 11

Business must make sure that the elements fit together well. Over time the marketing mix for a product will evolve depending on its stage in the product life cycle.