Flashcards in Place Deck (16):
What is the definition of place?
Place is the point where products are made available to customers.
What is the channel of distribution?
The channel of distribution is the route through which a good or service is moved to the market.
What are the three channels of distribution?
1. producer - wholesaler - retailer - consumer
2. producer - retailer - consumer
3. producer - consumer
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
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
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
What are the disadvantages of a town centre retail outlet?
- rent can often be high
- parking can be expensive
- competition can be high
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
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
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
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
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
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
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
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