Marketing (place) Flashcards
Define place
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
What is distribution
The process of getting the firms product to the market, the routes to a market that a product takes from producers to the final cosumer
What are short distribution channels
Where the producer sells either directly to the consumer or through a retailer
What are long distribution channels
Where there are more than one intermediary between the producer and consumer
What are wholesalers
Those who buy large quantities of supplies from producers and sell them on in smaller quantities
What are multi channel distribution systems
Where a firm chooses to use of a combination of methods
Who is involved in a traditional (long) distribution channel
Manufacturer, wholesaler, retailer, consumer
Who is involved in a modern (medium) distribution channel
Manufacturer, retailer, consumer
Who is involved in a direct (short) distribution channel
Manufacturer, consumer
How does the type of product effect distribution decisions
The characteristics have to be considered, coca cola ship syrup globally not the finished good
How does the market effect distribution decisions
Its crucial that targeted customers can access the product, are they targeting locally, nationally or globally ?
How does quantity and frequency effect distribution decisions
If only a few low cost items are being delivered it would not be cost effective to send them hundreds of miles, if there are regular deliveries its effective to invest in a delivery system
How does geographical location effect distribution decisions
How far the market is from the firm will determine the type of channel used
How does cost effect distribution decisions
They must choose a cost effective method or risk loosing profit
How does degree of control effect distribution decisions
Businesses may want to protect their brand by limiting the spread of their products and keeping tight control of where its sold and at what price
