Place Policy

Question 1

Channels of distribution

Answer 1

1. Direct: producer - consumer
2. Retail: producer - retailer - consumer
3. Wholesale: producer - wholesaler - retailer - consumer

Question 2

Direct selling methods

Answer 2

• helps business build relationships with new customers
• business can test the appeal of their product or service immediately
• tells you which marketing approaches reach your target market
• provide customers with compelling content they can share with potential customers
• increase sales as manufacturers has vested interest in product and sells with passion and dedication

Question 3

Wholesaler

Answer 3

Buys from manufacturer and sells in bulk to retailer, like makro

Question 4

Retailer

Answer 4

Sells in smaller units to the consumer, example checkers

Question 5

Franchising

Answer 5

A marketing system whereby the franchiser sells the rights to a franchisee to sell its products under its trademark

Question 6

Informal sector

Answer 6

All economic activities that are not recorded and registered as part of the economy

Question 7

Characteristics of informal sector

Answer 7

• does not have any written rules or agreements
• exists merely on verbal understanding
• doesn’t have fixed wages or fixes hours of work
• in most cases the atmosphere is congested and unhygienic
• economic activities not recorded in the GDP
• also include illegal activities such as drug dealing