U3- Place

Question 1

What are channels of distribution?

Answer 1

This refers to the marketing strategy used to make products available to customers

Question 2

Name 6 things which the channel that is chosen depends upon

Answer 2

The product

The size of the market

The target market

The costs involved

The image of the product

The finance available within the organisation

Question 3

Describe direct selling

Answer 3

This is where the producer sells directly to the consumer without the need of retailers (shops) or wholesalers

Question 4

What is mail order?

Answer 4

Goods sold via catalogues

Question 5

Give 3 advantages of mail order

Answer 5

Offers credit facilities

Can be exclusive and the only way to purchase some products

Saves expensive high street locations

Question 6

Give 3 disadvantages of mail order

Answer 6

Consumers may not like the lack of personal service

Involves high advertising costs

High levels of bad debts occur

Question 7

What is internet selling?

Answer 7

Where firms sell their products or services over the internet

Question 8

Give 5 advantages of internet selling

Answer 8

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

Question 9

Give 4 disadvantages of internet selling

Answer 9

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

Question 10

What is direct mail?

Answer 10

Where companies send letters or leaflets advertising their products for sale directly to the home of possible consumers

Question 11

What are 2 advantages of direct mail?

Answer 11

Consumers within specific market segments can be targeted

Can reach wide geographical areas

Question 12

What are 2 disadvantages of direct mail?

Answer 12

Consumers do not respond well to vast amounts of junk mail

Very few responses

Question 13

What are specialist magazines?

Answer 13

Used to deceive and sell specialised products directly to consumers

Question 14

Give 2 advantages of specialist magazines

Answer 14

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

Question 15

What is personal selling?

Answer 15

Where products are sold door to door or by telesales

Question 16

Give 2 advantages of personal selling

Answer 16

Can be direct to retailers or consumers

Allows the product to be demonstrated

Question 17

Give 2 disadvantages of personal selling

Answer 17

Consumers are not keen on being distributed at home

Sales costs can be high

Question 18

Name 4 different types of retailer

Answer 18

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)

Question 19

What are local stores?

Answer 19

Small local supermarket units e.g. Sainsbury’s local

Question 20

Give 3 advantages of local stores

Answer 20

Convenient for customer

Can provide specific services such as cash machines

Loyal repeat customers

Question 21

Give 2 disadvantages of local stores

Answer 21

More expensive to operate

Cannot normally compete on price

Question 22

Give 2 advantages of mobile shops

Answer 22

Allow participants and spectators at events to purchase goods

Increase brand awareness as they travel the country

Question 23

Give 2 disadvantages of mobile shops

Answer 23

Will only be able to hold a limited amount of stock

Narrow target market

Question 24

Give 2 advantages of high street stores

Answer 24

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

Question 25

Give 2 disadvantages of high street stores

Answer 25

Competitors selling similar products

Best locations are expensive

Question 26

What are wholesalers?

Answer 26

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

Question 27

Give 4 advantages of wholesalers

Answer 27

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

Question 28

Give 2 disadvantages of wholesalers

Answer 28

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