Place: Marketing Mix
- Created by: Hayley Barker
- Created on: 27-05-13 11:08
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- Place
- Channels of Distribution
- No intermediaries-producer- consumer (Bakery)
- - More difficult for consumers to shop around. - difficult to reach a large range of customers. - after sales service may not be as good.
- + Cheaper= no other companies involved. + Fast to get product from production line to consumer
- One Intermediariy= producer- retailer- consumer (Supermarket)
- + No wholesaler needed so it should be faster to get to the shops and should be cheaper as wholesalers do not need to make their profit. + Retailer can arrange a discount for buying large amounts from the producer. + Producer can get feedback from the customer
- - Retailer has to pay for transporting the goods from the producer. - Retailer has to have large premises to store all the goods.
- Two intermediaries= producer- wholesaler-Retailer- Consumer (Small Supermarket)
- + Retailer only needs to buy the amount they think they can sell. + Retailer will have a large choice of products to choose from. + low storage costs for retailer.
- - More expensive as a wholesaler needs to make a profit. - Can be slow as goods need to go through an extra channel.
- No intermediaries-producer- consumer (Bakery)
- Effects of Distribution Decisions
- COST: can be cheaper to sell a product direct to customer as each intermediaries will add on a profit price is greater.
- MARKET COVERAGE: To get wide coverage will need to used inetmediaries - reach all of potential audience alone.
- CONTROL: The more intermediaries used the less control a company has over the price/ way its sold/ displayed.
- Channels of Distribution
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