Marketing Mix – Place

Vocabulary flashcards covering key terms, distribution channels, and the pros and cons of retailers and e-commerce for Business Studies Content Area 2 (Marketing Mix – Place).

Place

The location where a business' products/services are made available to its customers.

Channels of distribution

The different ways of moving goods from producers to customers, including wholesalers, retailers and direct selling.

Wholesaler

A business that sells goods in large quantities to retailers at low prices. Major UK wholesalers include Booker Group and Bestway Wholesale.

Retailer

A business that places products into shops so that customers can buy them.

Advantage of a retailer

Products can be seen and touched by potential customers.

Disadvantage of a retailer

Unless the shop is owned by the producer, profit levels will be lower as the producer will need to pay the retailer to sell their products.

Direct selling

The producer sells their own products without the need for a physical shop. Much direct selling is done using e-commerce.

E-commerce

Selling direct to customers using a website. Customers like the convenience as it is a quick and easy way to buy products, though some worry products may not be as good as they look on the website.

Advantages of e-commerce

Attract customers from anywhere in the world, sell at any time of the day or night, receive payments immediately, and reduced costs compared to a physical shop.

Disadvantages of e-commerce

Can be hard for a business to get noticed online, employees may need new skills like website maintenance, and security software and processing returns may be expensive.