Chapter 56- place

Question 1

Place

Answer 1

• it is the third p
• This refers to the methods by which the business delivers its good or service to the right place at the right time
• it refers to getting the product/service to the Customer in the most cost-effective way

Question 2

Channels of distribution

Answer 2

• This is the method by which the good travels from the producer to the consumer

Question 3

Wholesaler

Answer 3

• Wholesaler buys the goods from the manufacturer
• breaks the goods down from bulk into smaller chunks
• Sells it onto smaller businesses who can’t afford to buy in huge quantities e.g corner shop
• they move goods around the country using their own network reducing costs and valuable time for other businesses
• They offer choice to the retailer

Question 4

Retailers

Answer 4

• They are at the bottom of the distribution chain
• Selling the final product to the consumer
• Usually smaller shops in local environments
• We all use retailers for our shopping

Question 5

Agents

Answer 5

• There role is to negotiate between buyers and sellers
• Agents will sell many different products on behalf of the producer
• They are used in the travel sector – holidays from a travel agent
• Usually paid on a commission basis
• When trying to break into a market businesses may use agents to help establish the good
• they usually have better knowledge of the market/local legislation

Question 6

Changes in distribution

Answer 6

• originally most retailers went through a wholesaler to buy their goods
• As retailers have grown the chain has changed more and more
• The big retailers supermarkets now go directly to manufacturers
• This reduces costs as they are able to buy in bulk
• Online and mail order has meant some sell directly to the consumer

Question 7

Reasons for changes in distribution channels

Answer 7

• due to need changing the distribution methods have had to change
• 24 hour shopping means goods are needed on the shelves so businesses cannot wait for goods to arrive
• Businesses have moved to retail parks distribution becomes easier
• Businesses sell a huge range of goods now

Question 8

Online and digital distribution

Answer 8

• Online shopping has made shopping more convenient
• Deliveries and then made directly to the customer
• courier companies have grown due to this
  -online changes is the biggest change in retail
• Some products are delivered directly via the Internet
  E.g.
• Electronic readers like kindle
• school books online
• BBC News online
• Downloading of music
• Watching TV online
• Ticket all electronic
• Signing documents electronic

Question 9

Physical distribution

Answer 9

• this is the actual movement of goods
• Road transport is still the main method
• Air transport is also increasingly being used due to environmental concerns.
• many fruits, veg and flowers are freighted into the UK

Question 10

Physical distribution depends on?

Answer 10

• The need for freshness for perishable goods
• Price prepare to pay by consumer
• The bulkiness of the product
• regularities of the deliveries
• Price of the product
• Nature of the consumer
• The method of production
• Costs of capital equipment

Question 11

Service marketing

Answer 11

• Morton more services are being distributed digitally
• Airlines theatre transport companies using Internet distribute their services
• Someone will choose not to use online therefore High Street presence still needed