3.3.3 Place Flashcards Preview

IGCSE Business Studies > 3.3.3 Place > Flashcards

Flashcards in 3.3.3 Place Deck (5)
Loading flashcards...
1
Q

What is a ‘channel of distribution’?

A

a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer

2
Q

Name the advantages + disadvantages of ‘Producer → Consumer’

A

ads:

  • All of profit is earned by producer
  • Producer controls all parts of the marketing mix
  • Quickest method of getting product to the consumer

disads:

  • Consumers are not always able to see or try product before they buy it
  • Delivery costs may be high if there are customers over a wide area
  • All storage costs must be paid for by producer
  • All promotional activities must be carried out and financed by producer
3
Q

Name the advantages + disadvantages of ‘Producer → Retailer → Consumer’

A

ads:
- Consumers can see and try product before buying it
- Cost of holding inventories of product Is paid by retailer
- Retailer will pay for advertising + other promotional activities
- Retailers are more conveniently located for consumers

disads:

  • Retailer takes some of the profit away from the producer
  • Producers lose some control of marketing mix
  • Producer must pay for delivery costs to retailers
  • Retailers usually sell competitors’ products as well
4
Q

Name the advantages + disadvantages of ‘Producer → Wholesaler → retailer → Consumer’

A

ads:

  • Wholesaler buys in bulk from the producer
  • Wholesalers will advertise and promote the product to retailers
  • Wholesalers pay for transport costs + storage costs

disads:

  • Another middleman so more profit is taken away from the producer
  • Producer loses even more control of the marketing mix
5
Q

Name the advantages + disadvantages of ‘Producer → Agent → Wholesaler → Retailer → Consumer’

A

ads:
- The agent has specialist knowledge of the market

disads:
- Another middleman is added so even more profit is taken away from the producer