Marketing Mix: Place Flashcards
What is a channel of distribution?
A channel of distribution is the route a product takes from the producer to the consumer.
What is the vital aspect of the marketing mix: place?
The product needs to get to the consumer.
What are the three intermediaries?
Retailers, wholesales and agents.
Define retailers
Retailers are shops such as Topshop or boots who sell directly to consumers, at the final stage of the distribution channel.
What are wholesales?
Wholesales are companies that buy goods from manufacturers in bulk and sell them in smaller quantities to retailers. They make distribution easier - manufacturers won’t have to make separate deliveries.
What are agents?
Agents act on behalf of manufacturers, they get commission on what they sell through parties etc - avon ladies.
What is direct selling?
Manufacturers -> consumer, accountants and hairdressers etc sell their services directly to the consumer. Internet has made this easier.
Give three examples of direct selling
Door to door, shopping channels, mail order catalogues.
What is indirect selling?
The manufacturer doesn’t interact with the consumer.
1) manufacturer -> retailer -> consumer
-large supermarkets buy in bulk direct from the manufacturer.
2) manufacturer -> wholesaler -> retailer -> consumer.
Traditional distribution channel for fast moving consumer goods.
What is direct selling through an agent?
An agent is like a sales representative, however they are not employed by the company. They receive commission on the goods they sell instead of a salary.
Do retailers only use one channel of distribution?
No they often use several channels of distribution.
What is called when supermarkets and fashion retailers have high street as well as internet stores?
Multi-channel strategy.
