3.4g Place Flashcards
Factors that dictate where a retailer locates
- Convenience
- Accessibility
- Cost of access
- Reputation
- Localisation
Where are the most appealing products placed?
At the front/in the window
Where are similar products placed in relation to one another?
Alongside eachother
Where are popular products placed?
At eye level or on mannequins
Where are loss leaders placed?
Around the store to encourage shoppers to wander around
Number of outlets that sell your product can be increased by
- Promotional campaigns
- Providing point of sale displays
- Offering low prices to retailers - possibly in sole brand deal
Distribution channel definition
Path that a product takes from production to consumption
What is each party in a distribution channel called?
An intermediary
Intermediaries in the distribution channels
- Producers
- Wholesalers
- Retailers
- Customers
Factors influencing choice of channels
- Size of retailer
- Type of product
- Complexity of product
- Cost
Ways technology can improve process:
- Queue management technology is used by airports to direct customers to shorter queues
- E-tailers offer option to pay through PayPal so customers can use address and payment details already linked to their account
Different types of channels:
- Direct selling (0-level channel) - manufacturer to consumer
- Indirect selling (1-level channel) manufacturer to retailer to consumer
- Direct selling through an agent (1-level channel) - manufacturer to agent to consumer
- Indirect selling (2-level channel) manufacturer to wholesaler to retailer to consumer
What is the physical environment?
The layout and design of the premises
What is process?
How the product is provided to the customer
