Place, distribution, e-commerce and m-commerce

What does place mean in the marketing mix?

How and where a business makes its products available to customers.

What is a channel of distribution?

The route a product takes from the producer to the final customer.

What is direct distribution?

When a business sells directly to customers without using an intermediary.

What is a retailer?

A business that sells products directly to final consumers.

What is one advantage of selling through retailers?

Retailers may already have shops, customers and distribution systems, allowing a producer to reach more people.

What is one disadvantage of selling through retailers?

The producer may have to share the profit with the retailer and have less control over how the product is presented.

What is a wholesaler?

A business that buys products in bulk from producers and sells smaller quantities to retailers or other businesses.

What is one advantage of using wholesalers?

They can handle storage and distribution, reducing the producer’s need to supply many retailers individually.

What is one disadvantage of using wholesalers?

The producer earns less per unit because the wholesaler takes a margin.

What is telesales?

Selling products or services to customers over the telephone.

What is one advantage of telesales?

Sales staff can speak directly to potential customers and explain a product or answer questions.

What is one disadvantage of telesales?

Customers may find unsolicited calls intrusive and may refuse to engage.

What is e-commerce?

Buying and selling goods or services through the internet, such as through a website.

What is m-commerce?

Buying and selling goods or services through mobile devices, such as smartphones and tablets.

How can e-commerce extend a business’s reach?

Customers can access its online store from different locations, potentially including international markets.

How can m-commerce benefit a business?

Customers can browse and buy through mobile devices wherever they have internet access.

What is one advantage of e-commerce?

A business may reach more customers without needing a physical shop in every location.

What is one disadvantage of e-commerce?

The business may face website costs, delivery challenges, cybersecurity risks and strong online competition.

What is one advantage of m-commerce?

It makes purchasing convenient for customers who prefer to shop using smartphones.

What is one disadvantage of m-commerce?

A poorly designed mobile website or checkout process may discourage customers from completing purchases.

How can online selling reduce business costs?

It may reduce the need for expensive retail premises, although website, delivery and technology costs still apply.

How can online selling help a business enter international markets?

Customers in other countries may be able to view and order products without visiting a physical store.

What challenges can international e-commerce create?

The business may need to manage shipping costs, customs requirements, different currencies, returns and overseas customer service.

Why might a business use both physical shops and e-commerce?

It can serve customers who prefer in-person shopping as well as those who value the convenience of buying online.

What factors influence the choice of distribution channel?

Product type, target market, cost, how quickly customers need the product, business resources and the amount of control required.

Why might a business sell directly to customers online?

It can control the shopping experience, collect customer feedback and avoid sharing some profits with intermediaries.

Why might a producer use a wholesaler rather than sell directly to every retailer?

A wholesaler can buy in bulk and manage distribution, saving the producer time and resources.