Place

Question 1

What is place?

Answer 1

Methods used to deliver goods to the right place at the right time.

Question 2

What are channels of distribution?

Answer 2

Methods used to get goods from producer to consumer.

Question 3

What is a wholesaler? E.g. Costco

Answer 3

• job is to ‘break bulk’.
• sell in smaller volume than they bought.

Question 4

What is a retailer? E.g. Tesco

Answer 4

Selling final product to consumer.

Question 5

What are agents? E.g. travel agent

Answer 5

• job is to negotiate between buyer/ sellers.
• usually payed on commission basis.

Question 6

What are reasons for change in distribution channels?

Answer 6

• size of business e.g. bigger means more power over producer.
• location change e.g. closer to main roads as its easier.
• type of products sold.
• increased online shopping, straight to consumer.

Question 7

What are the factors that affect physical distribution?

Answer 7

• price business is prepared to pay for fresh over freshness.
• bulkiness of product.
• need for freshness.
• price of product, cheaper product means cheaper distribution channel.