Place Flashcards
What is place
Where businesses sell their products and what methods are used to distribute the goods to the customer
Why is place important in marketing?
- Part of establishing a brand (can help create exclusivity)
- Many stores/locations mean easier consumption
What is distribution?
How all the goods get to the customer
What are the methods of distribution
- Using a wholesaler
- Manufacturer to retailer
- Direct selling (manufacturer to consumer)
What is a wholesaler distribution
Buying from manufacturer in bulk then separating it and selling it in smaller quantities so they don’t need to store lots of stock - acts as intermediary
What is manufacturer to retailer distribution
When all stock is bought directly by retailers (shops) from the manufacturer
What is manufacturer to consumer distribution
Selling directly from the manufacturer to the consumer through the internet, mail, etc.
What is e-commerce?
Conducting business on the internet
What is multichannel distribution?
The use of a variety of marketing channels to ensure efficient distribution
What effects which methods of distribution to use
- Control over price
- Control over promotion
- In-house distribution expertise
- Brand exposure
Why is it good to use intermediaries when selling goods
- Access to more specialists
- Wholesalers provide storage and bulk sales
- Efficiency as resources can be used elsewhere
Why is it good to have a short distribution channel though
- Cost is lower if the channel of distribution is shorter
- Faster delivery is a selling point
- Business must handle all activities themselves (transport, storage, sales, etc.)
What are some factors that can effect choice of place
Size of business
Business image
Market power
How established the company is
