marketing mix + strategy Flashcards
distribution channel
the route a product takes from producer to consumer
intermediaries
businesses between the producer and the consumer in a distribution channel, e.g retailers
what are the different channels
- traditional physical channel
- Direct to retailer/be your own retailer + online
- producer - consumer
traditional physical channel (1 ad 1 dis)
Some producers sell their products to wholesalers who act as suppliers for smaller retailers. This channel pushes selling prices. But helps smaller firms achieve wide distribution.
direct to retailer/be your own retailer + online
Producers either ignore wholesalers and sell their products in bulk to major retailers.
being your own retailer means complete control over how their products are sold (a lot of costs).
Online retail involves selling your products on e-commerce sites e.g eBay and paying commission to sell products.
Direct online involves producers setting up their own websites and selling from there (producers keep full price).
producer - consumer
Selling product from a warehouse e.g Costco, means producers receive all profit without paying money towards retailers.
what are the two types of online distribution channels
- direct online: businesses own website
- online retail: e-commerce
CHANGES IN DISTRIBUTION REFLECT SOCIAL TRENDS
Online: online distribution allows smaller firms to reach a global audience. Also online direct distribution relies on the variation of products shown on the website + aesthetics/functionality.
From product to service: some services will never be distributed online, or in any other way other than the provider and customer meeting face to face. E.g haircuts or staying in a hotel.
why is place or distribution an important part of the marketing mix
if consumers cannot get access to the product, they will not be able to buy it.
