3.4g - Place

Question 1

What are the factors that dictate where a retailer locates?

Answer 1

• Convenience
• Accessibility
• Reputation
• Localisation
• Cost of access
• Coverage

Question 2

Where are the most appealing products placed in a store?

Answer 2

• At the front

- In the window

Question 3

Where are loss leader products placed in a store?

Answer 3

They are scattered around the store to encourage shoppers to wander around

Question 4

How can a business increase the number of outlets that sell their product?

Answer 4

• Promotional campaigns
• Providing point of sale displays
• Offering low prices to retailers (possibly a sole brand deal)

Question 5

What is the objective of distribution?

Answer 5

To make sure that products are available in the right place at the right time in the right quantities

Question 6

Distribution channel

Answer 6

The channel that a product takes from production to consumption

Question 7

What is each party in a distribution channel called?

Answer 7

An intermediary

Question 8

What are the different intermediaries in a distribution channel?

Answer 8

• Producers
• Wholesalers
• Retailers
• Customers

Question 9

What factors influence the choice of distribution channel?

Answer 9

• Size of retailer (bigger ones want to deal direct with producers)
• Type of product (perishable goods have fewer stages)
• Complexity of product (complex products may require more retailer-producer contact e.g. wedding dresses)
• Cost
• Technology

Question 10

What are the different types of distribution channel?

Answer 10

• Direct selling (0-level channel, manufacturer to consumer)
• Indirect selling (1-level channel, manufacturer to retailer to consumer)
• Indirect selling (2-level channel, manufacturer to wholesaler to retailer to consumer)