Place!

Distribution channel: How a business gets its products to the end consumer (with or without the use of intermediaries.)

Direct sale: where no intermediaries are used.

Intermediaries: organisations involved in the distribution of goods and services on behalf of other businesses.

Place: the main factors

•Place is an important element of the marketing mix in a number of different ways:

– location of the retailer

– placement of the product within the point of sale

– availability of the product in as many different locations as possible

– the ways in which products are distributed

Location of the retailer

•The ‘right’ location involves several elements:

– convenience for consumers

– accessibility

– cost of access

– reputation of the area

– location relative to competition

Three distribution channels:

• Direct: Manufacturer -> Consumer
• Modern: Manufacturer -> Retailer -> Consumer
• Traditional: Manufacturer -> Wholesaler -> Retailer -> Consumer

• Good publicity of products with free samples to trade buyers.
• Advertise in a trade magazine e.g. the Grocer.
• Get salespeople to visit potential suppliers and offer favourable terms e.g. exclusive sale of the product for a period of time.

Placement within the point of sale

•About 70% of buying decisions are made in-store. Sales 

can be increased by the careful placing of products within 

the point-of-sale outlet. 

•Placement also applies to direct selling. Businesses use 

catalogues and internet sites to make them easy and 

attractive for shoppers to use.