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Business Studies > Place > Flashcards

Flashcards in Place Deck (16):
1

What is the definition of place?

Place is the point where products are made available to customers.

2

What is the channel of distribution?

The channel of distribution is the route through which a good or service is moved to the market.

3

What are the three channels of distribution?

1. producer - wholesaler - retailer - consumer
2. producer - retailer - consumer
3. producer - consumer

4

What are the advantages of a local retailer outlet?

- convenient for people around the area because it's near housing estates
- can employ local people, to improve local economy
- good personal service and can build relationships

5

What are the disadvantages of a local retailer outlet?

- less products to chose from
- products are expensive because they have to travel through many channels of distribution

6

What are the advantages of a town centre retail outlet?

- high footfall
- more choice of products to chose from
- easy to get to - transport methords
- encourages competition and promotes businesses around it
- opportunity to negotiate price

7

What are the disadvantages of a town centre retail outlet?

- rent can often be high
- parking can be expensive
- competition can be high

8

What are the advantages of an out of town retail outlet?

- products will be quite cheap because they don't have to travel through channels of distribution
- economies of scale available
- rent is much cheaper
- free parking

9

What are the disadvantages of an out of town retail outlet?

- it isn't near to any villages so it means that there might not be many passing customers
- people have to make special journeys to get there
- not convenient for people without cards
- often a "one-off" shop

10

What are the advantages of the internet?

- easily accessible from most locations
- available 24/7
- reduces travel time and expense for customers
- flexibility allows images, colour, prices, delivery options to be altered almost instantaneously
- can attract income from advertising

11

What are the disadvantages of the internet?

- greater competition
- charges for online payments can be high and can impact on your profit
- you can physically see the product
- delivery costs can be high
- requires expertise to build and keep working efficiently
- requires constant monitoring and updating
- security problems

12

What are the advantages of department stores?

- large selling space where customers can browse lots of brands very easily
- lots of choice for customers
- personal shoppers available to add value to the experience
- high footfall
- opportunities for advertising

13

What are the disadvantages of department stores?

- expensive to set up, run and maintain
- there will be high rents
- customers might have to travel some distance and parking is often difficult/expensive

14

What are the functions of a producer?

- creates demand for the product
- researches and develops new product ideas
- manufactures the product
- works closely with suppliers
- works closely with wholesalers and retailers to ensure the right quality is made
- tries to set the price as high as possible

15

What are the functions of a wholesaler?

- acts as a link between the manufacturers and the consumer of goods
- enables the producer to reduce his effects (and costs) which getting his product to market
- helps the producer market his product
- enables small retailers to assess the goods at places convenient and accessible to them
- by breaking bulk down, smaller retailers can have assess to smaller quanties of products to sell in their shops

16

What are the functions of a retailer?

- sells the producer's goods
- displays and promotes the goods in the shops/on websites
- gives the consumer after sale service and advice
- deals with faulty goods or other complaints
- enables consumers to buy goods of their choice in shops located nearby
- have more personal relationships with consumers