Chapter 15: Marketing Mix Place

Place is an important part of the marketing mix because:

• consumers must be in the right place to buy the product
• the product must be ready for consumers in the right place
• advertising should be in the right place
• if the product is in place, it will not be successful

The definition of ‘channel of distribution’ is:

• the means of transport used between factory and retail shop
• the firms involved in passing a product to the customer
• the way in which a product is transported around a factory
• the road network between the factory and the retail shops.

Producer - Consumer is most likely to be used by a manufacturer of:

• chocolate bars
• DVD players
• mass produced cars
• specialist racing cars.

One of the advantages of the channel of distribution shown in question 3 is that:

• a large delivery can be broken into a smaller quantity
• the absence of intermediaries helps to keep the price down
• the producer does not have the cost of holding stocks
• the consumer can see the products that are for sale.

Products sold over the internet will use which of the following channels of distribution?

• Producer - Consumer
• Producer - Wholesaler - Retailer - Consumer
• Producer- Agent - Retailer - Consumer
• Producer - Retailer - Consumer

One disadvantage of the channel of distribution: Producer - Wholesaler - Retailer -Consumer is

• the profit taken by intermediaries helps to keep prices low
• the producer loses control over how the product is marketed
• the producer has to hold high stocks of the finished goods
• consumers find it hard to return faulty goods to the firm

One of the advantages of using agents for selling goods in foreign markets is that:

• the agent will not take a profit from the sale of goods
• the producer will have more direct contact with consumers
• the agent will have knowledge of local market conditions
• the producer will have complete control over product sales.

All of the following are part of the normal role of wholesalers except:

• breaking bulk quantities to smaller deliveries to retailers
• offering credit facilities to the retailers
• arranging delivery of the product to retailers
• putting goods on display for the consumers

One disadvantage to a producer of using a wholesaler instead of dealing with a retailer is:

• the producer has many more firms to deal with
• the wholesaler’s profit will raise prices of the product
• the producer will have to make many more deliveries
• the producer will have to hold a higher level of stocks.

A farmer grows vegetables & sells directly to consumers. The reason for this decision is:

• the products need to be explained to the consumers
• a high quality image will be needed as goods are expensive
• the products are perishable
• the products will be purchased infrequently.