Business Studies- Place

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  • Created by: mohasnain
  • Created on: 21-04-15 17:52
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  • Place
    • definition- place refers to where the product or service is sold
    • Distribution
      • the movement of goods and services from thje manufacturer to the end consumer
        • RETAILER-A SHOP
        • WHOLESALER-SELL GOODS IN LARGE QUANTITY
      • ZERO LEVEL CHANNEL
        • DIRECT- eg PLUMBER
        • Ads- no profit margins-wont sell at higher price
        • Disads-manufacturers only sell in bulk so consumers cant buy
      • ONE LEVEL CHANNEL
        • MODERN- eg greggs
        • Ads- someone else will sell  products for you, eg botos will sell cosmetics by different companies
        • Disads-manufacturer will have to pay the companies, eg MAC will have to pay BOOTS
      • TWO LEVEL CHANNEL
        • TRADITIONAL- LOCAL SHOPS
        • Disads-   have to pay mark up twice as the wholesalers an manufactures will want to make money
        • Ads- dont have to communicate with maufacturer. can find more business
      • factors
        • location
          • costs- insurance, rent, gas

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