U3- Place Flashcards
What are channels of distribution?
This refers to the marketing strategy used to make products available to customers
Name 6 things which the channel that is chosen depends upon
The product
The size of the market
The target market
The costs involved
The image of the product
The finance available within the organisation
Describe direct selling
This is where the producer sells directly to the consumer without the need of retailers (shops) or wholesalers
What is mail order?
Goods sold via catalogues
Give 3 advantages of mail order
Offers credit facilities
Can be exclusive and the only way to purchase some products
Saves expensive high street locations
Give 3 disadvantages of mail order
Consumers may not like the lack of personal service
Involves high advertising costs
High levels of bad debts occur
What is internet selling?
Where firms sell their products or services over the internet
Give 5 advantages of internet selling
Consumers can order from the comfort of their home
Available 24/7
Cheaper prices
Can reach wide geographical areas
Goods are delivered direct to the home of consumer
Give 4 disadvantages of internet selling
Delay between purchase and receiving goods
Lack of personal contact
Unable to try on clothing so may not purchase
Some concerns over use of credit cards and the security involved
What is direct mail?
Where companies send letters or leaflets advertising their products for sale directly to the home of possible consumers
What are 2 advantages of direct mail?
Consumers within specific market segments can be targeted
Can reach wide geographical areas
What are 2 disadvantages of direct mail?
Consumers do not respond well to vast amounts of junk mail
Very few responses
What are specialist magazines?
Used to deceive and sell specialised products directly to consumers
Give 2 advantages of specialist magazines
Consumers can submit an order by telephone or by completing an order form
Consumers who purchase the magazine are interested in that area so sales are more likely
What is personal selling?
Where products are sold door to door or by telesales
Give 2 advantages of personal selling
Can be direct to retailers or consumers
Allows the product to be demonstrated
Give 2 disadvantages of personal selling
Consumers are not keen on being distributed at home
Sales costs can be high
Name 4 different types of retailer
Independent retailer (usually just one shop e.g. Local corner shop)
Multiple chain stores (e.g. Next, well known)
Supermarkets (offer a wide range of goods)
Department stores (e.g. John Lewis, tend to specialise in higher priced premium brands)
What are local stores?
Small local supermarket units e.g. Sainsbury’s local
Give 3 advantages of local stores
Convenient for customer
Can provide specific services such as cash machines
Loyal repeat customers
Give 2 disadvantages of local stores
More expensive to operate
Cannot normally compete on price
Give 2 advantages of mobile shops
Allow participants and spectators at events to purchase goods
Increase brand awareness as they travel the country
Give 2 disadvantages of mobile shops
Will only be able to hold a limited amount of stock
Narrow target market
Give 2 advantages of high street stores
Customers more likely to impulse buy in physical stores
In store customers can connect to the online store and view, compare and order from the entire business range of products
Give 2 disadvantages of high street stores
Competitors selling similar products
Best locations are expensive
What are wholesalers?
They buy in bulk from the manufacturer and break the product down into smaller quantities for selling onto retailers or even direct to the consumer
Give 4 advantages of wholesalers
Saves on administration costs
Saves the manufacturer from making lots of smaller deliveries which in turn saves them on transport costs
If there are changes in trends and fashions the manufacturer will not be left with unsold stock
Wholesalers can help label and package products meaning it’s less work for the manufacturer
Give 2 disadvantages of wholesalers
Manufacturers lose control over the image of their product
Profits are lost to the wholesaler which could otherwise be kept by the manufacturer to improve their financial position
