Marketing Mix - Place

Question 1

How does a business decide where to sell

Answer 1

A business needs to get the product in front of its customers - the business has 3 place objectives

1) to get its product to as many customers as possible
2) to get the most cost effective way to get its product to its customers
3) to get the product to be easily available to its customers

Question 2

What is a retailer

Answer 2

A retailer sells good direct you to the consumer
The owner of the retail shop may have bought the goods from a wholesaler manufacturer to sell on to the consumer
The retailer will mark up the price of the goods, so they will be more than they paid for them to make a profit

Question 3

Advantages of being a retailer

Answer 3

Going shopping is an enjoyable experience that customers can do with their friends or family
Trying on clothes helps when buying
Customers can have the product soon as they have bought it - instant satisfaction
Retailers win when a customers needs to see, touch, try or test a product first

Question 4

Disadvantages of being a retailer

Answer 4

Retailers are only open during the day and customers may be too busy with work or family
Customers may have to wait in a queue or carry heavy bags of shopping
Customers may find it embarrassing to buy some personal items
May charge higher prices than etailers

Question 5

What are wholesalers

Answer 5

Is the company is targeting business customers who prefer to deal with large suppliers, Selling directly to them may not be a realistic option
Instead, the business might aim to supply wholesalers who have existing relationship with these businesses
Wholesalers may also be called cash and carry

Question 6

What are telesales

Answer 6

Telesales is also called telemarketing
It involves talking to potential and existing customers over the phone
It can be used to:
Promote a new product 
Stay in touch with customers
Generate leads

Question 7

What is e-commerce

Answer 7

A business may decide to trade online
Customers can browse the website from anywhere in the world and can make purchase when they want
The website will then process the transaction and the customers can pay through credit card or debit card or through online payment systems

Question 8

E-commerce and international markets

Answer 8

E-commerce means that a business can get access to international markets

Question 9

Advantages of e-commerce

Answer 9

Access to the global marketplace
Business can make cost savings on expensive showrooms or shops
No business rents to pay, no heating bills or rent, reduces costs and increases profit margins
Businesses are open 24/7
Last need for staff, another cost reduction

Question 10

Disadvantages of e-commerce

Answer 10

Being part of the global market means the business is in competition with lots of others
Designing and keeping a website up today is market is expensive and may require an IT specialist
Packing and distribution of products can be very costly and involves long distances

Question 11

What is M commerce

Answer 11

Mobile commerce is a type of e-commerce conducted through mobile devices

Question 12

M-commerce

Answer 12

The four main mobile marketing tools used are:
Mobile web sites
Mobile applications
Mobile advertising
Text

Question 13

M-commerce and international markets

Answer 13

If the business is already selling abroad, or is planning to export, it is essential that the optimise the M-commerce website so that it is visible to potential mobile customer globally

Question 14

Advantages of M commerce

Answer 14

M-commerce is time efficient, available to new customers and convenient

Question 15

Disadvantages of M-commerce

Answer 15

Smaller screen
Security
Mobile friendly