Marketing Foundations 24108, 15/05/2019, Christian John
Marketing Foundations Tutorial 8: Distributions (Place)
Distribution Chain (Includes Video of Place (Product
distribution)
Follow-up discussions:
- What are some issues that Giant Eagle could face?
o For local items
o For international items
What is the advantage of using a distribution centre versus a warehouse?
- Not only are distribution centers a place of storage (which are simply
what warehouses are) not just for storage, but they also offer other
value-added services such as packaging and the just-in-time (JIT)
approach to inventory management
Textbook Discussion Questions
10.2.2 Using examples, explain the advantages of using a just-in-time (JIT)
approach to inventory management. (pg. 373)
JIT is a method of inventory management, which involves receiving goods
only as they are needed
Advantages of this method:
- Reduces time consumption (Thus increasing efficiency)
- Reduces costs
10.3.1 How does the distribution of physical products differ from the distribution
of services? Give examples in your answer. (pg. 375)
Physical products can be distributed to customers via online services
- An example of a physical product is clothing
In contrast, services must be established in a physical location. Customers
must come somewhere to enjoy the service; the service is produced and
consumed at the same time
Page 1
, Marketing Foundations 24108, 15/05/2019, Christian John
- An example of a service is going to a car shop to repair your car
10.4.2 Outline the major considerations in choosing a retail location. (pg. 385)
Considerations in choosing a retail location:
- The target market of the retail store
- The size of the retail location
- The costs
- Whether the retail store will be in a mall or outside location
- Whether the business wants to locate their retail store near their
competition or away from them (IGA, for example, might want to
stay away from successful competitors such as Coles or Woolworths
so they can maximise sales)
- Accessibility of locations: Is it easy to get to the location? (Consider If
the location is easily accessible via public transport and if there are
enough parking spots for vehicles)
- Whether the location is known for specific products/services; If
locations are known for specific products/services, this may incline
more people to go to your retail store
o Example: People say that ‘you go to Parramatta if you want a
car’
10.5.2 What is the difference between an agent and a broker? Give examples in
your answer. (pg. 388)
Agent:
- Agents work for one or more companies
- Example: A real estate agent can sell houses on behalf of
their company
Broker:
- Brokers work individually, providing services for buyers
Page 2
Marketing Foundations Tutorial 8: Distributions (Place)
Distribution Chain (Includes Video of Place (Product
distribution)
Follow-up discussions:
- What are some issues that Giant Eagle could face?
o For local items
o For international items
What is the advantage of using a distribution centre versus a warehouse?
- Not only are distribution centers a place of storage (which are simply
what warehouses are) not just for storage, but they also offer other
value-added services such as packaging and the just-in-time (JIT)
approach to inventory management
Textbook Discussion Questions
10.2.2 Using examples, explain the advantages of using a just-in-time (JIT)
approach to inventory management. (pg. 373)
JIT is a method of inventory management, which involves receiving goods
only as they are needed
Advantages of this method:
- Reduces time consumption (Thus increasing efficiency)
- Reduces costs
10.3.1 How does the distribution of physical products differ from the distribution
of services? Give examples in your answer. (pg. 375)
Physical products can be distributed to customers via online services
- An example of a physical product is clothing
In contrast, services must be established in a physical location. Customers
must come somewhere to enjoy the service; the service is produced and
consumed at the same time
Page 1
, Marketing Foundations 24108, 15/05/2019, Christian John
- An example of a service is going to a car shop to repair your car
10.4.2 Outline the major considerations in choosing a retail location. (pg. 385)
Considerations in choosing a retail location:
- The target market of the retail store
- The size of the retail location
- The costs
- Whether the retail store will be in a mall or outside location
- Whether the business wants to locate their retail store near their
competition or away from them (IGA, for example, might want to
stay away from successful competitors such as Coles or Woolworths
so they can maximise sales)
- Accessibility of locations: Is it easy to get to the location? (Consider If
the location is easily accessible via public transport and if there are
enough parking spots for vehicles)
- Whether the location is known for specific products/services; If
locations are known for specific products/services, this may incline
more people to go to your retail store
o Example: People say that ‘you go to Parramatta if you want a
car’
10.5.2 What is the difference between an agent and a broker? Give examples in
your answer. (pg. 388)
Agent:
- Agents work for one or more companies
- Example: A real estate agent can sell houses on behalf of
their company
Broker:
- Brokers work individually, providing services for buyers
Page 2
