Place

Question 1

What is the definition of place?

Answer 1

Place is the point where products are made available to customers.

Question 2

What is the channel of distribution?

Answer 2

The channel of distribution is the route through which a good or service is moved to the market.

Question 3

What are the three channels of distribution?

Answer 3

1. producer - wholesaler - retailer - consumer
2. producer - retailer - consumer
3. producer - consumer

Question 4

What are the advantages of a local retailer outlet?

Answer 4

• convenient for people around the area because it’s near housing estates
• can employ local people, to improve local economy
• good personal service and can build relationships

Question 5

What are the disadvantages of a local retailer outlet?

Answer 5

• less products to chose from

- products are expensive because they have to travel through many channels of distribution

Question 6

What are the advantages of a town centre retail outlet?

Answer 6

• high footfall
• more choice of products to chose from
• easy to get to - transport methords
• encourages competition and promotes businesses around it
• opportunity to negotiate price

Question 7

What are the disadvantages of a town centre retail outlet?

Answer 7

• rent can often be high
• parking can be expensive
• competition can be high

Question 8

What are the advantages of an out of town retail outlet?

Answer 8

• products will be quite cheap because they don’t have to travel through channels of distribution
• economies of scale available
• rent is much cheaper
• free parking

Question 9

What are the disadvantages of an out of town retail outlet?

Answer 9

• it isn’t near to any villages so it means that there might not be many passing customers
• people have to make special journeys to get there
• not convenient for people without cards
• often a “one-off” shop

Question 10

What are the advantages of the internet?

Answer 10

• easily accessible from most locations
• available 24/7
• reduces travel time and expense for customers
• flexibility allows images, colour, prices, delivery options to be altered almost instantaneously
• can attract income from advertising

Question 11

What are the disadvantages of the internet?

Answer 11

• greater competition
• charges for online payments can be high and can impact on your profit
• you can physically see the product
• delivery costs can be high
• requires expertise to build and keep working efficiently
• requires constant monitoring and updating
• security problems

Question 12

What are the advantages of department stores?

Answer 12

• large selling space where customers can browse lots of brands very easily
• lots of choice for customers
• personal shoppers available to add value to the experience
• high footfall
• opportunities for advertising

Question 13

What are the disadvantages of department stores?

Answer 13

• expensive to set up, run and maintain
• there will be high rents
• customers might have to travel some distance and parking is often difficult/expensive

Question 14

What are the functions of a producer?

Answer 14

• creates demand for the product
• researches and develops new product ideas
• manufactures the product
• works closely with suppliers
• works closely with wholesalers and retailers to ensure the right quality is made
• tries to set the price as high as possible

Question 15

What are the functions of a wholesaler?

Answer 15

• acts as a link between the manufacturers and the consumer of goods
• enables the producer to reduce his effects (and costs) which getting his product to market
• helps the producer market his product
• enables small retailers to assess the goods at places convenient and accessible to them
• by breaking bulk down, smaller retailers can have assess to smaller quanties of products to sell in their shops

Question 16

What are the functions of a retailer?

Answer 16

• sells the producer’s goods
• displays and promotes the goods in the shops/on websites
• gives the consumer after sale service and advice
• deals with faulty goods or other complaints
• enables consumers to buy goods of their choice in shops located nearby
• have more personal relationships with consumers