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business 1.3 - Coggle Diagram

- - - - Convenience for customers
      - Often UK-wide reach to customers
      - Retailer chooses the final price
      - Retailer handles the financial transaction
      - Retailer holds the stock
      - After-sales support (e.g. returns)
    - - Wholesalers “break bulk”
      - Buy in large quantities from producers
      - Break into smaller quantities to sell to retailers
      - Advantages
      - Reduce the producer’s transport costs (fewer journeys to the wholesaler rather than many journeys to retailers)
      - Retailers can order in smaller amounts from wholesalers
      - Wholesaler makes money by buying at a lower price from the producer and adding a profit margin onto the price paid by the retailer
    - - Distribute (sell on) products and serve as a local sales point
      - Usually specialise in a particular industry
      - Examples – building supplies, electrical components, industrial clothing
      - Offer products from many producers = greater choice
      - Different from agents in that a distributor holds stock
    - - Specialist type of distributor
      - Does not hold stock
      - Tend to operate in tertiary sector (services)
      - Travel
      - Insurance
      - Publishing
      - Earn commission based on sales achieved
  - - - Geography- customers may live too far away to be reached directly or spread widely
      - Consolidation of small orders into large ones
      - Better use of resources elsewhere
      - Lack of retailing expertise
      - Segmentation - different segments of the markets can be best reached by different distribution channels
- - - - Wide coverage
      - Control of message
      - Repetition means that the message can be communicated effectively
      - Effective for building brand awareness and loyalty
    - - Often expensive
      - Impersonal
      - One way communication
      - Lacks flexibility
      - Limited ability to close a sale
  - - - High customer attention
      - Message is customised
      - Interactivity
      - Persuasive impact
      - Potential for development of relationship
      - Adaptable
      - Opportunity to close the sale
    - - High cost
      - Labour intensive
      - Expensive
      - Can only reach a limited number of customers
  - - - Effective at achieving a quick boost to sales
      - Encourages customers to trial a product or switch brands
    - - Sales effect may only be short-term
      - Customers may come to expect or anticipate further promotions
      - May damage brand image
  - - - To achieve favourable publicity about the business
      - To build the image and reputation of the business and its products, particularly amongst customers
      - To communicate effectively with customers and other stakeholders
    - - Promoting new products
      - Enhancing public awareness
      - Projecting a business image
      - Promote social responsibility
      - Projecting business as a good employer
      - Obtain favourable product reviews / recommendations
- - - - actual product, quality, features, packaging, design, brand name
        
        presale, augmented support, warrenty, aftersale service