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Business studies > Unit 13 > Flashcards

Unit 13 Flashcards

1
Q

Q1. What are channels of distribution?

A

A1. Channels of distribution describe how a product goes from the producer to the consumer.

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2
Q

Q2. What is a wholesaler?

A

A2. A wholesaler is a business that buys products in bulk from producers and sells them to retailers.

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3
Q

Q3. Who are middlemen?

A

A3. Middlemen are intermediaries in channels of distribution.

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4
Q

Q4. What is direct selling?

A

A4. Direct selling is when a product is sold by the producer directly to the consumer.

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5
Q

Q5. What is promotion?

A

A5. Promotion refers to marketing activities used to communicate with customers and potential customers.

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6
Q

Q6. What is advertising?

A

A6. Advertising is paid-for communication with customers which uses printed and visual media to inform and persuade consumers to buy a product.

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7
Q

Q7. What is informative advertising?

A

A7. Informative advertising provides information about the product in advertisements to create product awareness.

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8
Q

Q11. What is personal selling?

A

A11. Personal selling is when sales staff communicate directly with consumers to achieve sales.

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9
Q

Q8. What is persuasive advertising?

A

A8. Persuasive advertising is communication with consumers aimed at getting customers to buy the business’s product instead of a competitor’s.

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10
Q

Q9. What is below-the-line promotion?

A

A9. Below-the-line promotion is paid-for communication that uses incentives to encourage consumers to buy.

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11
Q

Q10. What is sales promotion?

A

A10. Sales promotion refers to incentives used to encourage short-term increases in sales.

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12
Q

Q12. What is direct mail?

A

A12. Direct mail refers to printed materials sent directly to customer addresses.

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13
Q

Q13. What is sponsorship?

A

A13. Sponsorship is payment by a business to have its name or product associated with a particular event.

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14
Q

Q14. What is a marketing budget?

A

A14. The marketing budget is the amount of money made available by a business for marketing activities.

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15
Q

Q15. What is e-commerce?

A

A15. E-commerce refers to the use of the internet and other technology to make sales.

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16
Q

Q16. What is a loyalty reward scheme?

A

A16. A loyalty reward scheme offers rewards, discounts, and other special incentives as a way to attract and retain customers.

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17
Q

Q.17 What are the channels of distribution?

A

A.17
1) Direct selling.
2) Retailer.
3) Wholesaler method.
4) Agent.

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18
Q

Q.18 Explain channel of distribution: Direct selling.

A

A.18 Product sold directly to consumer.

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19
Q

Q.19 Explain channel of distribution: Retailer method.

A

A.19 Retailers buys product from producer and sells it to consumers.

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20
Q

Q.20 Explain channel of distribution: Wholesaler method.

A

A.20 Wholesaler buys from producer in large quantities and sells to wholesaler.

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21
Q

Q.21 Explain channel of distribution: Agent.

A

A.21 Agent has special knowledge about the country and the markets and can help the producer to place its product with wholesalers and retailers, however, it may reduce the profit as another middleman enters the channel.

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22
Q

Q.22 What are the factors that need to be considered for choosing channel of distribution.

A

A.22
1) Cost.
2) Nature of product.
3) The market.

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23
Q

Q.23 How is the decision for channel of distribution affected by: Cost.

A

A.23 Cost and speed of transportation of goods needs to be considered.

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24
Q

Q.24 How is the decision for channel of distribution affected by: Nature of product.

A

A.24 Some goods need special delivery conditions.

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25
Q

Q.27 What are the advantages of distribution method: Retailer.

A

A.27
1) Consumers can see and try products before buying.
2) Cost of holding inventory of product is paid by retailer.
3) Retailer will pay for advertising and other promotional activities.
4) Retailers are conveniently located for customers.

26
Q

Q.25 How is the decision for channel of distribution affected by: The market.

A

A.25 Markets that cover a large geographical area are best served through wholesalers.

27
Q

Q.26 What are the advantages of distribution method: Direct selling.

A

A.26
(1) All profit earned by producer.
(2) Producer controls all parts of marketing mix.
(3) Quickest method of getting product to customer.
(4) Producer has direct contact with consumer.

28
Q

Q.28 What are the advantages of distribution method: Wholesaler.

A

A.28
1) Wholesaler will advertise and promote product to retailers.
2) Transport cost to the retailer is paid for by the wholesaler.
3) Wholesaler will pay for storage costs.
4) Goods can be sold to larger market.

29
Q

Q.29 What are the advantages of distribution method: Agent.

A

A.29 Agent finds wholesaler and retailers who are prepared to buy the product from the producer and has specialist knowledge.

30
Q

Q.30 What are the opportunities of E-commerce business?

A

A.30
1) Increased market.
2) Reduced costs.
3) Better information.

31
Q

Q.32 Explain the opportunity of e-commerce business: Reduced costs.

A

A.32 Staffing and other shop costs are saved.

32
Q

Q.31 Explain the opportunity of e-commerce business: Increased market.

A

A.31 Products and services can be sold to consumers all around the world.

33
Q

Q.34 What are the threats to e-commerce business?

A

A.34
1) Increased competition.
2) Unfamiliarity.

34
Q

Q.33 Explain the opportunity of e-commerce business: Better information.

A

A.33 Website can give more potential consumers with all the information they need about goods and services.

35
Q

Q.36 Explain the threat of e-commerce business: Unfamiliarity.

A

A.36 Consumers are less likely to be familiar with products and less likely to buy.

36
Q

Q.35 Explain the threat of e-commerce business: Increased competition.

A

A.35 Competitors can now be from any part of the world.

37
Q

Q.38 What are the threats of E-commerce consumers?

A

A.38
1) Fraud.
2) Hacking.
3) No personal service.
4) Returning items.

38
Q

Q.37 What are the opportunities of E-commerce consumers?

A

A.37
1) Convenient.
2) Wider choice.
3) Lower prices.
4) Better information

39
Q

Q.39 Explain the opportunity of E-commerce consumers: Convenience.

A

A.39 Consumers can shop from the comfort of their own home.

40
Q

Q.40 Explain the opportunity of E-commerce consumers: Wider choice.

A

A.40 Consumers are now able to buy goods which they would not have access to locally.

41
Q

Q.41 Explain the opportunity of E-commerce consumers: Lower prices.

A

A.41 Competition is world-wide, this allows for lower prices.

42
Q

Q.42 Explain the opportunity of E-commerce consumers: Better information.

A

A.42 Consumers can read about goods and services available from websites of different businesses.

43
Q

Q.43 Explain the threat of E-commerce consumers:

A

A.43 A website may take money without selling goods.

44
Q

Q.44 Explain the threat of E-commerce consumers:

A

A.44 Consumers’ bank details may be stolen.

45
Q

Q.45 Explain the threat of E-commerce consumers:

A

A.45 No face-to-face contact with seller.

46
Q

Q.46 Explain the threat of E-commerce consumers:

A

A.46 Returning items may be troublesome, inconvenient and expensive.

47
Q

Q.47 What are the types of advertising?

A

A.47
1) Informative advertising.
2) Persuasive advertising.

48
Q

Q.48 What is the utility of Informative advertising?

A

A.48 Provides information to potential customers about the product.

49
Q

Q.49 What is the utility of Persuasive advertising?

A

A.49 Convince customers they need the product is better than competitors products.

50
Q

Q.50 Disadvantages of channel of distribution: Direct selling.

A

A.50
1) Customers cannot see or try product if bought online.
2) Delivery costs may be high.
3) Storage costs paid by producer.
4) Promotional activities done by producer.

51
Q

Q.51 Disadvantages of channel of distribution: Retailer.

A

A.51
1) Retailer takes some profit.
2) Producers lose some control of marketing mix.
3) Producer must pay delivery costs.
4) Retailers usually sell competitors’ products as well.

52
Q

Q.52 Disadvantages of channel of distribution: Wholesaler.

A

A.52
1) Both wholesaler and retailer take from profit.
2) Producer lose further control of marketing mix.

53
Q

Q.53 Disadvantages of channel of distribution: Agent.

A

A.53
Agent, wholesaler and retailer take from profit

54
Q

Q.54 What are some activities of sales promotion?

A

A.54
1) Money-off coupons and vouchers.
2) Point of sale display in shops.
3) Loyalty reward schemes.
4) Competitions and games with prizes.

55
Q

Q.55 What are the factors of direct selling.

A

A.55
Used for selling expensive items that have high profit per unit. This can be an expensive form of promotion because more staff are needed, and businesses needs to pay bonuses to salesmen that make a sale to increase sales incentive.

56
Q

Q.56 What are the factors of direct mail?

A

A.56
Good way of communicating with large market over a wide geographical area, however it may sometimes be considered junk mail.

57
Q

Q.57 How do sponsorships help?

A

A.57Helps catch public eye easily.

58
Q

Q.58 What are the effects Effects of using social media for advertising?

A

A.58 Business websites can promote a business and its’ products and place banners and pop-ups on websites of other businesses that is related to the current business and vice versa. Social media websites like YouTube, Facebook, Instagram, Twitter etc. have provided businesses with a huge number of potential customers from around the world.

59
Q

Q.59 What is the advantage of E-commerce?

A

A.59 Businesses can sell products over the internet, more and more consumers use the internet to make weekly family purchases, and for buying things like books, clothing, furniture, etc.

60
Q

Q.60 What are the aims of promotion?

A

A.60
1) Attracting attention of consumers.
2) Persuading consumers.
3) Explaining how a product is better than competitors’ products.
4) Creating and developing brand image.
5) Encouraging wholesalers and retailers to stock the product.
6) Reassuring consumers.

Business studies (25 decks)

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