The marketing mix- Place Flashcards
What is place
Where the product is sold to customers
How does a business chose their channel of distribution
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
What is a wholesaler
buy in bulk from manufacturers and sell to retailers
What are the benefits of a wholesaler
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
What are the costs of a wholesaler
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
What is a retailer
business that sell products to the customer
What are the trends of retailing
Out of town shopping centres
sell almost everything/ wide range of goods
24-hour opening
e-commerce
self service checkouts
Describe a supermarket
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
Describe a discount retailer
Branded at a discount price
limited availibility of products sold
products that are sold change regularly
Describe an E-tailer
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
Describe a convenience retailer
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
Describe direct selling
Manufacturers who sell directly to the customer
Describe retailer benfits
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
