Place Flashcards
(21 cards)
What does ‘place’ refer to in the 4 Ps of marketing?
‘Place’ refers to marketing channels, supply chains, and retailing, which are crucial for creating competitive advantage.
What is a marketing channel?
A marketing channel is the collective term for organizations involved in the journey from manufacturer to end consumer.
What is the primary reason for using marketing channels?
The primary reason is to reduce uncertainty and complexity in transactions.
What are the advantages of using intermediaries in marketing channels?
Intermediaries reduce risk, increase value, enable specialization, and automate processes.
What are the three main channel structures?
The three main channel structures are Direct, Indirect, and Multichannel.
What is the Direct channel structure?
Direct means selling directly to users with no intermediaries, allowing for more control and profit retention.
What is the Indirect channel structure?
Indirect uses one or more intermediaries to reach consumers, prevalent for fast-moving consumer goods (FMCGs).
What is the Multichannel structure?
Multichannel involves a mix of using intermediaries and selling directly, enhancing reach and customer insight.
What are the three elements to balance when designing distribution channels?
The three elements are Economics, Coverage, and Control.
What does channel intensity refer to?
Channel intensity refers to the number and dispersion of outlets available for consumers to buy a product.
What are the three levels of channel intensity?
The three levels are Exclusive, Selective, and Intensive.
What is disintermediation?
Disintermediation refers to a reduction in the number of intermediaries in a marketing channel.
What is reintermediation?
Reintermediation refers to the emergence of new types of intermediaries in response to changes in the market.
What are the four main activities of supply chain management?
The four main activities are Fulfilment, Transportation, Stock management, and Warehousing.
What is retailing?
Retailing includes all activities directly related to the sale of products and services for personal use.
What are the advantages of using retailers?
Retailers have expertise, scale, and take on risks associated with selling products.
What factors affect retail positioning?
Factors include store layout, design, arrangement, merchandising, and selection of brands.
What are the different types of retail outlets?
Types include supermarkets, superstores, discount stores, specialty stores, and convenience stores.
What challenges are retailers facing in recent years?
Retailers are struggling to compete with online offerings and are experiencing a decline in high street traffic.
What is ‘showrooming’?
‘Showrooming’ is when customers look at products in-store but buy them online for a cheaper price.
How are retailers improving customer experience?
Retailers are enhancing experiences by offering services like personal shopping assistants and integrating technology.
