Place (Distribution) (AQA GCSE Business): Flashcards
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Practise the cards
15 cards from this deck
Place in marketing
Place in marketing
How businesses get products from producer to customer
Distribution objective
Distribution objective
Right place, right time, right quantities
Distribution channel
Distribution channel
Organisations product passes through from producer to customer
Why intermediaries are used
Why intermediaries are used
Specialists in selling with contacts, experience & scale
Channel 1 structure
Channel 1 structure
Long: Producer → Wholesaler → Retailer → Consumer
Channel 2 structure
Channel 2 structure
Short: Producer → Retailer → Consumer
Channel 3 (direct marketing)
Channel 3 (direct marketing)
Producer → Consumer (no intermediaries)
Retailers' typical profit margin
Retailers' typical profit margin
40-50% of final consumer price
Wholesalers 'break the bulk'
Wholesalers 'break the bulk'
Split large deliveries into smaller quantities for retailers
How agents are paid
How agents are paid
Commission - percentage of sales revenue
Direct marketing definition
Direct marketing definition
Selling to consumers directly without intermediaries
Longer channels and control
Longer channels and control
Longer channels mean less control
E-commerce
E-commerce
Buying and selling through the internet
M-commerce
M-commerce
Buying using wireless mobile devices like smartphones
E-commerce business advantage
E-commerce business advantage
24/7 sales, reduced premises costs, expanded market reach