Section Three - Marketing Decisions - Marketing Mix (place)

Question 1

What are retailers?

Answer 1

Shops who sell to consumers

Question 2

What are wholesalers?

Answer 2

They buy products in bulk and sell them on to retailers

Question 3

What are the different channels of distribution?

Answer 3

• Manufacturer to Consumer
• Manufacturer to Retailer to Consumer
• Manufacturer to Agent to Consumer
• Manufacturer to Wholesaler to Retailer to Consumer

Question 4

What are characteristics of short distribution channels?

Answer 4

• Industrial products
• Few customers
• Expensive, complex goods
• Infrequent sales
• Bespoke (custom-made) products
• Bulky products
• Services

Question 5

What are characteristics of long distribution channels?

Answer 5

• Consumer products
• Many customers
• Inexpensive, simple goods
• Frequent sales
• Standard products
• Small products
• Goods

Question 6

What is multi channel distribution?

Answer 6

Multi-channel distribution is when businesses sell through more than one method, e.g. online and in store. It gives flexibility for customers and a wide market coverage for manufacturers.

Question 7

What is an example of multi channel distribution?

Answer 7

Apple® uses multi-channel distribution. You can buy an iPad® directly from an Apple® Store, either
online or in a physical shop. Alternatively, you can buy it from an online retailer such as amazon®, or from a retailer such as ASDA or Currys PC World, either online or from a retail outlet…