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
– 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
How to gain good distribution
- 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.