Place in the Marketing Mix Flashcards
Place
Where consumers expect to get the goods and services they want, at the right location, when they want them and in the right amounts.
Distribution channels
Channels or routes trhough which a product passes from the manufacturer to the consumer.
Types of distribution channels
Manufacturer → Consumer
Manufacturer → Retailer → Consumer
Manufacturer → Wholesaler → Retailer → Consumer
Agent
An independent company appointed to handle sales and distribution within a specified area.
Factors affecting the channel of distribution
Cost
Control
Distribution
Legal factors
Cost affecting the channel of distribution
The longer the supply chain the greater the final cost may be to the customer.
Distribution affecting the channel of distribution
Manufacturers may not have the resources to reach large numbers of consumers without an intermediary.
Control affecting the channel of distribution
Some manufacturers want to control the distribution channels they use carefully.
Legal factors affecting the channel of distribution
The law may affect how a product is distributed.
Multi-channel distribution
Offering customers a choice of ways to buy products.