114 place

Question 1

what is place

Answer 1

place is all about where businesses sell their products and what methods are used to distribute the goods to the consumer- can be online and physical

Question 2

what is a distribution channel

Answer 2

the path/route taken by a product as it goes from the manufacturer/producer to the ultimate finial consumer -> these include : manufacturer to wholesaler , retailer and direct selling

Question 3

describe using a wholesaler (distribution channel)

Answer 3

manufacturer-> wholesaler -> retailer-> consumer
-manufacturer sells bulk to the wholesaler , wholesaler breaks the bulk so smaller quantities can be purchased by retailers
* most suitable for small business as they have no storage space (expensive) and not confident in selling large amounts of products- so buy in smaller chunks

Question 4

describe using a retailer (distribution channel 2)

Answer 4

manufacturer -> retailer -> consumer
-most suitable for large retail businesses eg.supermarkets can afford to bulk buy straight from the producer-doesn’t require using wholesalers. they can buy in bulk and store the products
-they’re able purchase products at competitive prices which enables them to price the products competitively in store, benefiting customers

Question 5

describe direct selling (distribution method 3)

Answer 5

manufacturer -> consumer
-selling products directly to consumers in a non-retail environment, sales can occur at home , work , online ext
* most suitable for e-commerce business eg.fashion business

Question 6

what is a multi distribution channel

Answer 6

involves using more than one distribution channel

Question 7

evaluate manufacturer to retailer

Answer 7

(+)-can help reduce unit costs as the profit margin of the wholesaler is overcome
-can help improve quality as products are delivered straight from the manufacture
(-) depends on efficiency of manufacturer to meet demand placed on them by retailer

Question 8

evaluate using a wholesaler

Answer 8

(+) benifts business as they can’t buy large bulk as they will have no where to store it , and it would be expensive to do so
(-) depends on the expense because there’s more steps in order to get it

Question 9

evaluate direct selling

Answer 9

(+) reduces costs as they don’t need to buy stores, so they can charge a higher price-maximising profit (can charge retail price), producer makes 100% of the profit
(-) could reduce target market if business decides to sell online- people may not like buying online