Lesson 2.3.2

2.3.2 Place Quiz: NCFE Business & Enterprise, Unit 2

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

In partnership with Revision Ninja

Place is about how a product gets to the customer. This lesson compares direct selling with sale through retailers and wholesalers, looks at where premises should be sited, and weighs the benefits and drawbacks of e-commerce, including lower fixed costs, round-the-clock trading and higher returns.

Key points

  • Place covers the distribution channels and outlets that carry a product from the maker to the buyer.
  • Selling direct cuts out intermediaries, so the producer keeps the whole price but must handle marketing, packing and delivery.
  • A retailer takes a margin, so the manufacturer earns less per unit and loses control over how rival brands are shelved.
  • A wholesaler buys in bulk and breaks it into smaller lots for small shops, giving the producer fewer, larger orders.
  • Factories favour transport links, while services such as hairdressers need to be close to their customers.
  • Online trading has lower rent and staffing costs and can take orders at any hour from many buyers.
  • E-commerce suits digital goods but not in-person services, and it brings more returns because buyers cannot try items first.

Key terms

Place
The part of the marketing mix covering how and where a product reaches its customers.
Direct channel
Selling straight from producer to customer without any intermediary.
Retailer
A business that buys from makers or wholesalers and sells to the public.
Wholesaler
A business that buys in bulk and sells smaller quantities on to retailers.
E-commerce
Buying and selling goods and services over the internet.
Intermediary
A business standing between the producer and the final customer, taking a margin.

Host it live on the board and students join with a game code on their own devices, or revise alone with Free Play. The answers are revealed in the game.

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The 20 questions

  1. In the marketing mix, what does the Place element decide?

    • Distribution channels
    • Product design
    • Advertising methods
    • Selling price

  2. What is the main benefit when a manufacturer sells straight to shoppers online?

    • Fewer customer returns
    • Higher profit margin
    • Lower delivery costs
    • Zero website fees

  3. A maker sells crisps to a supermarket that sells to shoppers. What channel is this?

    • Direct channel
    • Through a wholesaler
    • Through a retailer
    • Business to business

  4. What is a major drawback for a manufacturer that sells through supermarkets?

    • Slower sales volume
    • Higher delivery costs
    • Lower unit revenue
    • More customer complaints

  5. A wholesaler buys crisps in bulk from the manufacturer. Who does it mainly sell those goods on to?

    • Other manufacturers
    • Home consumers
    • Their own suppliers
    • Small retailers

  6. Which factory location factor matters most to a heavy furniture maker?

    • Local population size
    • Passing footfall
    • Good transport links
    • Town centre presence

  7. Which type of business most needs premises close to where customers live?

    • A hair salon
    • A software developer
    • An online wholesaler
    • A car factory

  8. What is a key customer service advantage of selling via a website?

    • Offering face-to-face advice
    • Providing personal styling
    • Serving many at once
    • Giving physical product tours

  9. Which business is best suited to trading through e-commerce?

    • Custom tailoring
    • Luxury restaurant
    • Hairdressing salon
    • Downloadable video games

  10. What is a common drawback of e-commerce for both seller and shopper?

    • Higher return rates
    • Slower market reach
    • Higher wage costs
    • Limited opening hours

  11. In a direct channel of distribution, how do goods reach the buyer?

    • Using agents only
    • Via a wholesaler
    • Through a retailer
    • Producer to shopper

  12. Why might a maker choose to sell direct to the public?

    • Avoid delivery costs
    • Reduce marketing needs
    • Keep middleman profit
    • Eliminate customer service

  13. What is a disadvantage of a manufacturer selling goods through high-street retailers?

    • Exclusive brand loyalty
    • Guaranteed stock levels
    • Fixed selling prices
    • Rival brands displayed

  14. What is a benefit to a manufacturer of supplying stock through a wholesaler?

    • Zero transport costs
    • Higher profit margins
    • Fewer, larger orders
    • Direct consumer data

  15. What is a disadvantage for a manufacturer supplying goods to a wholesaler?

    • Higher marketing costs
    • Lower unit price
    • More customer invoices
    • Slower bulk delivery

  16. What is a real financial advantage of selling online rather than from a shop?

    • Lower fixed costs
    • Free marketing reach
    • Higher retail prices
    • Zero transport costs

  17. Why might a new business choose to trade online rather than rent a shop?

    • Higher profit margins
    • No delivery charges
    • Immediate local sales
    • Lower fixed costs

  18. What is a major operational drawback of running an online retail business?

    • No storage space
    • High return rates
    • Strict shop hours
    • Expensive electricity bills

  19. Which business is least likely to benefit from selling products through a website?

    • A local stone quarry
    • A digital software company
    • A designer clothing brand
    • A handmade jewellery maker

  20. Which service business cannot easily move operations online during lockdowns?

    • A software developer
    • A hair salon
    • An insurance broker
    • An online tutor

All NCFE Business & Enterprise quizzes