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
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