the marketing mix: place

Question 1

what are the 4 distribution channels

Answer 1

direct to customers
retailer
wholesaler and retailer
agent/additional intermediaries

Question 2

what is the benefits of distribution channel one

Answer 2

usually used when manufacturer to another, suitable for farm products
simple
lower price bc no wholesaler/retailer
products can be sold by mail order catalogue or via the internet

Question 3

what the disadvantages of distribution channel 1

Answer 3

impractical cuz customers dont live near farm or factory
not suitable if cannot send by post
expensive to mail

Question 4

when is distribution channel 2 used

Answer 4

when retailer is large or products is expensive

Question 5

what are the benefits of distribution channel 2

Answer 5

producer sells large quantities to retailer

reduces distribution cost compared to selling directly to customers

Question 6

what are the disadvantages of distribution channel 3

Answer 6

may be more expensive for small shop to buy from wholesaler instead of manufacturer
wholesaler may not have full range of products to sell
takes longer for fresh products to reach shops
consumer price is higher than direct selling

Question 7

what are the advantages of distribution channel 3

Answer 7

wholesaler saves storage space for small retailer and reduces storage cost
small retailers can purchase in small quantities
wholesaler may give credit to retail customers so they can take goods straight away and pay later
wholesaler may deliver to small retailer , saving transportation cost
wholesaler can gv advice to retailer and manufacturer on what is selling well

Question 8

what is an agent

Answer 8

an independent person or business that is appointed to deal with the sales and distribution of a product or range of product

Question 9

what are the advantages of distribution channel 4

Answer 9

manufacturers may not know the best way to sell products in other market
manufactures hv some control over the way products are sold
agent is aware of local conditions and will be able to select the most effective place to sell

Question 10

what are the disadvantages of distribution channel 4

Answer 10

producer has less control over way product is sold to customer
more expensive with an additional amount or commission/sales

Question 11

what are the methods of distribution

Answer 11

department stores, chain stores, discount stores, superstores, independent retailers, direct sales, mail order, internet