4.5(d) - Place Flashcards
The seven Ps of the marketing mix
Channels of distribution
are the ways that a product gets from the manufacturer to the consumer, such as wholesalers, agents, retailers, e-commerce or vending machines.
Agents (or brokers)
are representatives and negotiators who help to sell a vendor’s products, such as real estate agents or insurance brokers
Intermediaries
are agents or other businesses (distributors) that act as a middle person in the distribution channel
Intermediation
is the process of using intermediaries in the distribution channel between the manufacturer and consumers of a product
Mail order
is a speciality channel of distribution that enables customers to order products via the postal system
Multi-channel distribution strategy
refers to the use of a range of channels to distribute a firm’s products
One-level distribution channel
has one intermediary, such as retailers, agents or distributors being used to sell a manufacturer’s products to consumers.
e.g Houses being sold through agents. It wouldn’t make sense to be sold through any other agents
Place (or distribution)
refers to the distribution of products, i.e. how products get from the producer to the consumer. It is the process of getting the right products to the right consumers at the right time and place in the most cost-effective way.
Retailers
are the sellers of products to consumers in outlets (or ‘shops’)
Speciality channels of distribution
Refer to any indirect way to distribute products that does not involve retailers to get products to consumers
Two-level distribution channel
uses two intermediaries, such as the use of wholesalers and retailers to get products to consumers
Wholesalers
are businesses that buy large quantities of a product from a manufacturer and then ‘break’ the bulk into smaller units for resale, mainly to retailers
Zero-level distribution channel (also known as direct distribution)
leaves out any intermediaries, i.e, the producer sells directly to the consumer
