3.6 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

The definition of ‘channel of distribution’ is:

• the means of transport used between factory and retail shop

• the company involved in passing a product to the customer

• the road network between the factory and the retail shops.

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

• chocolate bars

• a cotton dress

• specialist racing cars.

One of the advantages of the channel of distribution from producer to consumer

• The price sold is low since it's a direct selling from seller to buyer

• a large delivery can be broken into a smaller quantity

• 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

• consumers find it hard to return faulty goods to the firm

• the producer has to hold high stocks of the finished goods

• the producer loses control over how the product is marketed

• the profit taken by the middle person helps to keep prices low

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 producer will have complete control over product sales.

• the agent will have knowledge of local market conditions

If a product, such as an ice cream, is purchased frequently it is likely to be:

• distributed using personal selling

• distributed through many retail outlets

• distributed from producer to wholesaler direct to consumers

• sold directly from the factory to consumers

Someone  who buys from the producer and breaks bulk is a

• Retailer

• Agent

• Wholesaler

• Consumer

Advantage of selling products through e-commerce (internet)

• You will be able to cover customer from various market (local and international)

• High transportation cost

• The competition between the e-commerce business would be very high