332
Chapter 26 Review
Remember This
n Place decisions answer questions about
(1) location of the business, (2) hours of
operation, (3) channels of distribution,
and (4) transportation.
n Businesses should be located in places
that are convenient for obtaining inputs
and sending outputs.
n A good retail site should be (1) easy to
get to, (2) visible to passing traffic, and
(3) safe.
n A channel of distribution is the route a
good takes from its original source to its
final customer.
n A wholesaler sells to other businesses; a
retailer sells to the final consumers.
n Intermediaries (1) facilitate exchanges,
(2) break bulk, and (3) perform many of
the Four P activities of marketing.
n Manufacturers use intermediaries
because the intermediaries perform the
tasks of distribution better and for less
cost than the manufacturer can.
n Channel management helps control the
movement of products from producer to
consumer.
n In a distribution channel, ownership
is transferred from the original owner
to the channel members to the final
customer.
Review Concepts
  1. What is the main goal of place decisions?
  2. Before making place decisions, what
should marketers know?
  3. What utilities do place decisions add to
a product?
  4. What is another term for location?
  5. What is the difference between a
wholesaler and a retailer?
  6. Draw a diagram that shows the most
common channel of distribution for
consumer goods.
  7. What type of channel of distribution is
most common for services?
  8. Why do manufacturers use
intermediaries?
  9. How does channel management help
control the movement of products from
producer to consumer?
10. What happens to ownership of products
as they move through a distribution
channel?
Think Critically
  1. Why is location such an important
decision for a business?
  2. Suppose a retailer has a Web site. What
kind of market coverage would the
Web site be?
  3. Imagine that you are sitting in a fast-
food restaurant enjoying a hamburger.
Describe the channels of distribution
for all the products on your hamburger
plate.
  4. Imagine that you want to start an export
business. Why would it be beneficial to
use a broker?
  5. Imagine that you are shopping for
groceries. How do intermediaries make
your shopping easier?