Unit 4 - Marketing (Marketing mix: Place)

Question 1

Objective of distribution

Answer 1

To make products available in the right place at the right time in the right quantities for the customer.

Question 2

What is a distribution channel?

Answer 2

A distribution channel moves a product through the stages from production to final consumer.

Question 3

The distribution channel may include the following…

Answer 3

• Producer supplies the goods and services.
• Wholesaler buys in large quantities from producers. Sells in smaller quantities to the retailers.
• Retailers are shops that sell the goods and services to the customer. This may be through a physical outlet and/or online.

Question 4

Producer

Answer 4

Supply goods and services.

Question 5

Intermediary

Answer 5

The intermediary is the link in the distribution channel between the producer and the consumer.

Question 6

Advantages of using intermediaries

Answer 6

• Access to larger number of customers for the producer.
• Saves costs for the producer.

Question 7

Disadvantages of using intermediaries

Answer 7

-Intermediary
- Producer may lose control of how and where the product is sold.

Question 8

E commerce and M commerce

Answer 8

Online selling via e-commerce and m-commerce where many businesses sell their products online or via mobile apps with some having no physical stores.

Question 9

Advantages of e-commerce and m-commerce

Answer 9

• Customers can order any time.
• Customers can order from home = convenience.
• Customers can order from anywhere in the world.

Question 10

Disadvantages of e-commerce and m-commerce

Answer 10

• Need to be able to distribute to a much wider range of destinations; logistical and cost issues.
• Need to be able to handle returned goods;
• Need to ensure the security of the site.
• Logistical and cost issues when distributing overseas raises the price of products and can impact on competitiveness.