A retailer is a business that sells products to the final consumer, usually in small quantities. Supermarkets, high street shops and online stores are retailers.

What is a wholesaler?

A wholesaler buys goods in bulk from manufacturers and sells them in smaller quantities to retailers. A cash-and-carry that supplies corner shops is a wholesaler.

Why might a small corner shop buy from a wholesaler rather than direct from manufacturers?

A corner shop cannot buy the huge quantities that manufacturers sell. A wholesaler offers a wide range of brands in small amounts from one place.

What is a drawback for a producer of selling through wholesalers and retailers?

Every wholesaler or retailer in the chain takes a share of the profit. The producer also loses some control over how its product is sold.

AQA GCSE Business 8132

Business in the Real World

Topic overview What a business is and why people start one Goods, services, needs, wants and factors of production Business sectors, entrepreneurs and a changing business environment Sole traders, partnerships, limited companies and not-for-profit organisations Business aims and objectives Why business objectives differ and change Stakeholders and their influence on businesses Factors affecting business location Business planning and basic financial terms Expanding a business and economies of scale

Influences on Business

Topic overview E-commerce and digital communication Ethics, the environment and sustainability Interest rates, employment and consumer spending Globalisation and exchange rates Employment, health and safety and consumer law Competition, risk and uncertainty

Business Operations

Topic overview Job, flow and lean production Managing stock: just in time and just in case Suppliers, procurement, logistics and supply chains Quality control, quality assurance and TQM Customer service and the sales process

Human Resources

Topic overview Organisational structures, span of control and delegation Recruitment, selection and contracts of employment Financial and non-financial methods of motivation Induction, on-the-job and off-the-job training

Marketing

Topic overview Identifying and satisfying customer needs Market segmentation Purpose of market research and primary and secondary research Market research methods and interpreting findings Pricing methods and factors affecting price New products, USP, brand image and the Boston Matrix Product life cycle and extension strategies Promotional methods and the promotional mix Channels of distribution, e-commerce and m-commerce The integrated marketing mix

Finance

Topic overview Sources of finance Cash flow and cash flow forecasts Financial calculations and average rate of return Break-even charts and margin of safety Income statements and statements of financial position Profit margins and judging financial performance

Marketing

Channels of distribution, e-commerce and m-commerce

3 things to know
Paper 2

Overview

Place in the marketing mix, channels of distribution, retailers and wholesalers, telesales, selling online and by mobile, reaching buyers abroad, and the right channel for a farm or a chocolate maker.

What you need to know

Answer each one before you reveal it.

Your recallNot started

Key term

What does place mean in the marketing mix?

Key term

What is a channel of distribution?

Key term

What is a retailer?

Questions from this subtopic

Each one with the model answer underneath.

1
What does place mean in the marketing mix?
Model answer
Place is how and where a product reaches its customers. Place covers the channels of distribution a business uses.
2
What is a channel of distribution?
Model answer
A channel of distribution is the route a product takes from the producer to the final customer. A channel may go direct or through wholesalers and retailers.
3
What is a retailer?
Model answer
A retailer is a business that sells products to the final consumer, usually in small quantities. Supermarkets, high street shops and online stores are retailers.
4
What is a wholesaler?
Model answer
A wholesaler buys goods in bulk from manufacturers and sells them in smaller quantities to retailers. A cash-and-carry that supplies corner shops is a wholesaler.
5
Why might a small corner shop buy from a wholesaler rather than direct from manufacturers?
Model answer
A corner shop cannot buy the huge quantities that manufacturers sell. A wholesaler offers a wide range of brands in small amounts from one place.
6
What is a drawback for a producer of selling through wholesalers and retailers?
Model answer
Every wholesaler or retailer in the chain takes a share of the profit. The producer also loses some control over how its product is sold.

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Business in the Real World

Influences on Business

Business Operations

Human Resources

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The pays a fee and a share of revenue.

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