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level: Place [Marketing Mix]

Questions and Answers List

level questions: Place [Marketing Mix]

QuestionAnswer
What is Place?-Refers to where the Product is sold, and how it gets it over there
What are the Types of Distribution-Physical Distribution; Handling, Movement and Storage of Goods from the Producer to the Consumer via the Channels of Distribution -Digital Distribution; A download of the Goods or Services. No Physical Product is Moved
What is the Objective of DistributionMaking Products available in the Right Place at the Right time in the Right Amount
How is Distribution Influenced by?-How can the Business know that the Product reaches the Existing and Potential Customers -How and Where do Customers buy the Product most Preferable -How important are Stock, Availability, Price and Speed?
What is a Distribution Channel?-Moves the Product through the Stages starting from Production to Consumer
What could be in the Distribution Channel?-Producer gives the Goods and Services -Wholesaler buys the Product in Massive Quantities from the Producer. Then sells it to the Retailers in Smaller Stock -Retailers shop the Products that are gained from the Wholesaler. This can be done Physically or Online Each party in the Distribution Channel is called an Intermediary [Keep in mind, this is a Physical Distribution]
Advantages of using Intermediaries?-Gives access to large number of Customers for the Producer. [Wholesalers and Retailers] -Saves Costs for the Producers; saves them the Hassel of distributing directly to many different customers in different areas across the World [Potentially]
Disadvantages of using Intermediaries-Increased Price at each Stage due to them wanting a Profit. This makes the Product more Expensive. -Producer may lost Control of how and where the Product has gone off to. The Producer may not feel ok with how its being Displayed or Promoted.
Give ways of the Distribution Channels1. Produce--Wholesaler--Retailer--Consumer Produce sells to the Wholesaler, then gets sent to the Retailer, then to the Consumer -Advantages; Reduces the Producers Transport costs [Fewer journeys to the Wholesaler then to the Retailer] -Retailers can have Small Amounts from Wholesalers, making it more Controlled 2.Producer--Retailer--Consumer Producer sells to the Retailers then to the Consumer Retailers directly Trade with the Customers, Online or Physically. 3. Producer--Consumer This is Direct Marketing, where the Producer and Consumer deal Directly with Each other Some ways this can happen are: -Mail Order Business [Customers chose from Catalogues and Order Direct -Telesales; Products sold over the Phone -Online Selling via E-commerce and M-commerce [E-commerce is selling goods and services online, M-commerce is mobile devices used to shop, buy and sell Products.]
Advantages of Digital Distribution-Cost saving; nothing spent physically moving the Product around -New and wider Markets on the Internet -Very easy to do so [Buy, Browse] -Fast to download/buy
Dis-advantages of Digital Distribution-Type of good; some types may not be good for Digital Distribution -Pay specialist workers to operate Digital Platforms -Content could be copied and sold illegaly -Customers have to have Internet
What could affect the Choice of DistributionNature of Product. Is it; -Fragile, Perishable -Technical, Complex -Customised -Type of Product [Convenience, Shopping, Speciality] -Image for the Product The Market. Is it; -Geographically Spread -Extent and Nature of Competitions The Business -Size -Nature -Does it have an Established Distribution Network -Does it want Control over how its Distributed
What could a Poor Distribution Choice lead to?-Sales; If its not where Customers want it to be, they may buy off someone else, tanking your sales -Image; Marketing Mix needs to make sense with the Place. High Quality Items with a Hefty Price tag ain't going to do well in a Supermarket -Price; Intermediaries all want Profit. The more of them, the more expensive the Product will be