Marketing Mix (Place)

Marketing Mix (Place)

NCFE Level 1/2 Award in Business and Enterprise

Place

This involves making goods or services available for those who want to buy them

Place is often overlooked, but it is a vital part of marketing as without it nothing would be sold!

For a business to sell its Products

It must use a “Channel of Distribution” other wise known as a "Supply Chain"

Multiple Choice

One disadvantage to a producer of using a wholesaler instead of dealing with a retailer is:

• the producer has many more firms to deal with
• the wholesaler’s profit will raise prices of the product
• the producer will have to make many more deliveries
• the producer will have to hold a higher level of stocks.

Multiple Choice

One disadvantage of the channel of distribution: Producer - Wholesaler - Retailer -Consumer is

• the profit taken by intermediaries helps to keep prices low
• the producer loses control over how the product is marketed
• the producer has to hold high stocks of the finished goods
• consumers find it hard to return faulty goods to the firm

Multiple Choice

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

Multiple Choice

One of the advantages of the channel of distribution shown in question 3 is that:

• a large delivery can be broken into a smaller quantity
• the absence of intermediaries helps to keep the price down
• the producer does not have the cost of holding stocks
• the consumer can see the products that are for sale.

Multiple Choice

The definition of ‘channel of distribution’ is:

• the means of transport used between factory and retail shop
• the firms involved in passing a product to the customer
• the way in which a product is transported around a factory
• the road network between the factory and the retail shops.

Location of Business

When choosing a site at which to locate a retail store, a business must consider:

*Customer Location

*Location of Raw Materials

*Availability of Staff

*Proximity to transport and infrastructure links

Multiple Choice

Where are restaurants most likely to locate?

• In areas that are most convenient for owners

• In areas that are most convenient for suppliers

• In an area that is most convenient for customers

Multiple Choice

What is a new shop in a city centre NOT likely to benefit from?

• Low rents

• An established infrastructure

• Availability of a specialist support services

Multiple Choice

What is the most likely reason for relocating a factory overseas?

• Reduce manufactoring costs

• Reduce transport costs

• To act ethically

Multiple Choice

Which of these is a challenge a business faces when setting up a business overseas?

• Greater control of your business activities overseas

• Cultural and language barriers

• Can provide a more personalised service to customers based locally

Multiple Choice

Which of these is NOT an advantage of an efficient transport network?

• It enables staff to get to work easily

• It allows supplies to be brought in from far afield

• Increased time getting finished products moved to market

Multiple Choice

What can location decisions have a big impact on?

• Costs

• Revenues

• Costs and Revenues

Multiple Choice

How is a business 'location' best described?

• The place where customers buy products

• The place where a business sites its operations

• The place where suppliers send components

Multiple Choice

What is the main important factor for a retail business? 

• Labour Costs 
• Cost of raw materials 
• Footfall 
• Rent

E-tailing

E-tailing can be described as transactions that are conducted over an electronic network

Advantages

•Businesses do not have to rent or own expensive retail space

•Customers can buy at any time of the day

•Businesses can access customers around the world

•Small businesses are able to complete with larger businesses without needing retail space

Open Ended

Examination Question One

SSS Ltd employs 35 skilled staff in the production department who all live within 5 miles of the factory unit. The directors are considering TWO sites for its new factory

SITE A

One mile away from the current factory, The rent is 10% higher than the rent of their current factory, It is 25% bigger than site B

SITE B

50 Miles away from teh current factory and owned by a local council, The council has offered it rent free for 2 years and then at the same rent that SSS Ltd would pay for Site A, The site is exactly the right size for SSS Ltd

Discuss which site SSS Ltds directors should choose (9)

Open Ended

Examination Question Two

50% of FCFAs customers order their chicken meals through e-commerce.

Identify and explain TWO advantages of FCFA of taking orders through e-commernece as well as through its shops (4)