What is place?

Place is the point where products are made available to customers. A business has to decide on the most cost-effective way to make their products easily available to customers.

This involves selecting the best channel of distribution. Potential methods include using:

• Retailers. Persuading shops to stock products means customers can buy items locally. However, using a middle man means lower profit margins for the producer.
• Producers can opt to distribute using a wholesaler who buys in bulk and resells smaller quantities to retailers or consumers. This again means lower profit margins for the manufacturer.
• Telesales and mail order. Direct communication allows a business to get products to customers without using a high street retailer. This is an example of direct selling.
• Internet selling or e-commerce. Online selling is an increasingly popular method of distribution and allows small firms a low cost…