The marketing mix- Place

Question 1

What is place

Answer 1

Where the product is sold to customers

Question 2

How does a business chose their channel of distribution

Answer 2

Demand- high demand, longest channel low demand, short
the product- perishable, exclusive image
the manufacturers logistics
the manufacturers storage facilities
legal restrictions
availibility of finance
reputation and reliability of retailers

Question 3

What is a wholesaler

Answer 3

buy in bulk from manufacturers and sell to retailers

Question 4

What are the benefits of a wholesaler

Answer 4

Reduced cost of holding stock for the manufacturer/ retailer
- manufacturer will not be left with unsold stock if demand changes
- less risk for both manufacturer and retailer
- retailer can purchase in small amounts from wholesaler
wholesalers often label products for the manuf
the manuf does not have to make as many small deliveries to retailers
- admin costs are also saved
wholesaler can also promote the product. this means reduces cost for the manuf and they can concnetrate on production
retailer can reduce/ remove storage facilities

Question 5

What are the costs of a wholesaler

Answer 5

manuf loses control of the marketing of their products
- image portrayed not manufacturers choice
wholesaler also makes a profit
- more expensive to the customer
discounts acheived from economies of scale can be lost by the retailer

Question 6

What is a retailer

Answer 6

business that sell products to the customer

Question 7

What are the trends of retailing

Answer 7

Out of town shopping centres
sell almost everything/ wide range of goods
24-hour opening
e-commerce
self service checkouts

Question 8

Describe a supermarket

Answer 8

traditionally sell food and drinks
most have expanded product portfolio to include clothing and household items
local supermarkets are growing in popularity
destroying many local independant stores

Question 9

Describe a discount retailer

Answer 9

Branded at a discount price
limited availibility of products sold
products that are sold change regularly

Question 10

Describe an E-tailer

Answer 10

shopping online and having the product delivered
n expensive retail outlets required ( rent and rates)
large warehouse on the outskirts of towns
logistic companies are often hired to deliver the products

Question 11

Describe a convenience retailer

Answer 11

small store that ffer a limited amount of products
found on residential area
more expensive as goods are brought from wholesalers
increased popularity as customers make many trips to these stores weekly

Question 12

Describe direct selling

Answer 12

Manufacturers who sell directly to the customer

Question 13

Describe retailer benfits

Answer 13

retailers are located closer to the customer
they often have an established customer base
have trained sales staff who have product knowledge
will attract customers by offers of credit facilities
can offer appropriate after sales services and guarantees
large retailers buy in bulk so pass cost savings to customers
retailers pay for advertising
products displayed attractively by the retailer

Question 14

what is direct selling

Answer 14

Selling from the manuf straight to the customer

Question 15

what are examples of direct selling

Answer 15

internet selling
personal selling
telephone selling
tv shopping
mobile marketing

Question 16

what are advantages of internet selling

Answer 16

convenience of buying products from comfort of own home 24/7
inexpensive to set up a website
worldwide customer base
save costs on retail outlets. this means can charge lower prices to customers
products can be demonstrated
can check reviews
compare with other products
increased profit as reduced channels of distribution

Question 17

What are disadvantages of internet selling

Answer 17

cannot see goods before purchasing
some dont like using cred cards online
web designer required to design and maintain
wai on goods arriving
internet problems can make purchasing stressful
lost or damaged goods while in transport
returning goods can be problematic

Question 18

What are the advantages of social media selling

Answer 18

can reach a global audience
less expensive than other methods of advertising
can make changes once and the whole advert is changed for everyone
customers can share the page
followers will receive notifications

Question 19

What are the disadvantages of social media

Answer 19

no control over comments being made by others. this means the organisation reputation can be damaged
still have to use other methods to advertise as not everyone uses social media