The document on "Distribution (Place) Decisions" outlines the crucial role of place in marketing, encompassing both physical and virtual locations where products are available. It discusses the various distribution channels available to firms, including direct selling, retailing, wholesaling, and e...
Distribution (Place) decisions
- Place defines both the physical location where a product is available as well as the
distribution channel it has travelled through to get from the manufacturer to the customer
- Place can be a physical market where byers and seller meet face to face or a virtual location
e.g. over the internet
- Increasingly firms are adopting a multi channel approach to place
Distribution
- Place is the term given to distribution
- Distribution is the process of getting the firm’s product to the market
- Distribution channels are the routes to market that a product takes from producers to the
final customer
- There are a number of distribution channels available to firms:
- Short distribution channels are where the producer sells either directly to the customer or
through a retailer
- Long distribution channels are where there are more than one intermediary (middle
person) between the producer and the customer
Types of distribution Channels
- Producers can use direct selling where they sell directly to the final customers
- Often producers use retailers who sell products on to the general public
- Wholesalers buy large quantities of supplies from producers and sell them on in smaller
quantities. E.G a corner shop might go to a wholesaler to buy their products
- Increasingly, firms are using e-commerce benefiting from the power of the internet to sell
on their products
- Multi-channel distribution is when a firm chooses to use a combination of methods
Traditional (long) Modern (medium length) Direct (short)
1. Manufacturer 1. Manufacturer 1. Manufacturer
2. Wholesaler
3. Retailer 2. Retailer
4. Consumer 3. Consumer 2. Consumer
Manufacturer/Producer – Organisation that take raw material or components and process them
into finished or semi processed goods.
- Operate in the secondary sector of the economy such as housing or car production
Wholesalers – Buy large quantities of supplies from producers and sell them on in smaller quantities
- They act as an intermediary between manufacturers and retailers and consumers
Retailer – An organisation that sells good or services to the general public or end user
- Reatailers are at the end of the channel of distribution
- They can act as an intermediary between producers, wholesalers and the consumer
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller tamarawindham. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.02. You're not tied to anything after your purchase.
