The Marketing Mix - Place

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  • Created by: Holly1999
  • Created on: 25-11-13 15:36

The Channels Of Distribution

The channels of distribution is how the product gets from the manufacturer to the consumer.

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Manufacturer-Wholesaler-Retailer-Consumer

This traditional route is still commonly used in the food and drink industry. The advantages for the manufacturer are that they get bulk orders and the wholesaler takes on the cost of storage and the risk of not selling the products. Retailers benefit because they reduce the risk by buying in smaller quantities, and the have a wider choice of products. Goods can take a long time to get from the manufacturer to the consumer.

This is an indirect channel.

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Manufacturer-Wholesaler-Consumer

The consumer buys the product from a cash and carry warehouse. This channel is good for manufacturers because the get bulk orders and the wholeslaer takes on the risk of not selling the products and the cost of storing them. The consumer pays lower prices but customer service may be poor.

This is an indirect channel.

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Manufacturer-Retailer-Consumer

This channel is becoming increasingly common in the clothing industry. It's faster than dealing with retailers through wholesalers and the manufacturer gets better consumer feedback about the products. However, it's harder for smaller retailers to avoid having to hold a lot of stock.

This is an indirect channel.

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Manufacturer-Consumer

This channel is now very popular - examples include factory shops, mail order, telesales and internet selling. It's the fastest channel and often cheapest for the consumer. But it can be difficult for consumers to shop around, and customer service may be poor.

This is a direct channel.

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