PLACE MARCKETING MIX

Question 1

what is place

Answer 1

how products pass from manufacturer to the final consumer

Question 2

what is a distribution channel

Answer 2

the chain of intermediaries a product passes through the producer to final consumer

Question 3

what are the different intermediary channels

Answer 3

• Direct selling
  -single intermediary
  -two intermediary

Question 4

advantages of direct selling

Answer 4

no-mark up taken by intermediaries
-producer has complete control
-quick
-direct contact gives useful market research

Question 5

disadvantages of direct selling

Answer 5

all storage and inventory costs paid by producers
-consumers can’t see before buying
-may not be convenient for consumers
-no after sales service

Question 6

advantages of single intermediary channel

Answer 6

-retailers incur holding costs
-retailers display products
-producers focus on production not selling

Question 7

disadvantages of single intermediary

Answer 7

intermediary takes a profit mark-up
-outlet isn’t exclusive to producers product
-producer loses control of marketing mix

Question 8

advantages of two intermediary channels

Answer 8

wholesalers hold goods and buy in bulk
- reduces producers inventory costs
-wholesalers pay for transport costs to retailers

Question 9

disadvantages of two intermediary channels

Answer 9

-intermediaries take a profit mark-up
-slows down distribution chain
-control loss of marketing mix

Question 10

online marketing (e-commerce)

Answer 10

selling and marketing activities that use the internet email and mobile communications to enourage direct sales via electronic commerce

Question 11

benefits of e-commerce

Answer 11

relatively inexpensive
-easy to reach wider audience
-consumers interact(data)
-dynamic pricing

Question 12

limitations of e-commerce

Answer 12

computer ownership isn’t everywhere
-consumers can’t interact with product before interacting
-website maintenance

Question 13

factors influencing the channel used

Answer 13

cost
how much control is wanted
-how many intermediaries is necessary

Question 14

digital distribution

Answer 14

the delivery or distribution of digital media content such as audios, video, TV programmes

Question 15

physical distribution

Answer 15

the activities that combine to achieve the efficient movement of finished products from the end of production operation to the consumer