place ( marketing mix )

Question 1

Advantages of manufacture to consumer

Answer 1

– Quickest method of getting the product to the consumer

– All of the profit is earned by the producer

Question 2

Disadvantages of manufacturer to consumer

Answer 2

– All promotional activities must be carried out and financed by the producer

– Delivery costs may be high if there are customers over a wide area

Question 3

Advantages of manufacturer to retailer to consumer

Answer 3

– The cost of holding inventories of the product is paid by the retailer

– Retailers are more conveniently located for consumers

Question 4

Disadvantages of manufacturer to retailer to consumer

Answer 4

– The retailer takes some of the profit away from the producer

– The producer must pay for delivery of products to the retailers

Question 5

Advantages of manufacturer to wholesaler to retailer to consumer

Answer 5

– Wholesalers will advertise and promote the product to retailers

– Wholesalers pay for transport and storage costs

Question 6

Disadvantages of manufacturer to wholesaler to retailer to consumer

Answer 6

– The producer loses even more control of the marketing mix

– Another middleman is added so more profit is taken away from the producer