Unit 4.5d 7ps of marketing mix: place Flashcards
Agents (or brokers)
Agents (or brokers) are representatives and negotiators who help to sell a vendor’s products, such as real estate agents or insurance brokers.
Channels of distribution
Channels of distribution are the ways that a product gets from the manufacturer to the consumer, such as wholesalers, agents, retailers, e-commerce or vending machines.
the different channels of distribution
- wholesalers
- distributors and agents (brokers)
- ratailers
- speciality channels of distribution:
mail order
e-comerce
vending machines
types of retailers
- independant ratilers
- conviniecne stores
- multiple retailers
- supermarkets
-departments - hypermarkets
Intermediaries
Intermediaries are agents or other businesses (distributors) that act as a middle person in the distribution channel.
Intermediation
Intermediation is the process of using intermediaries in the distribution channel between the manufacturer and consumers of a product.
Mail order
Mail order is a speciality channel of distribution that enables customers to order products via the postal system.
A multi-channel distribution strategy
A multi-channel distribution strategy refers to the use of a range of channels to distribute a firm’s products.
A one-level distribution channel
A one-level distribution channel has one intermediary, such as retailers, agents or distributors being used to sell a manufacturer’s products to consumers.
Place (or distribution)
Place (or distribution) refers to the distribution of products, i.e., how products get from the producer to the consumer. It is the process of getting the right products to the right customers at the right time and place in the most cost-effective way
Retailers
Retailers are the sellers of products to consumers in outlets (or ‘shops’).
Speciality channel
Speciality channels of distribution refer to any indirect way to distribute products that does not involve retailers, such as e-commerce, vending machines and mail order.
A two-level distribution channel
A two-level distribution channel uses two intermediaries, such as the use of wholesalers and retailers to get products to
consumers.
Wholesalers
Wholesalers are businesses that buy large quantities of a product from a manufacturer and then ‘break’ the bulk into smaller units for resale, mainly to retailers.
A zero-level distribution channel
A zero-level distribution channel (also known as direct distribution) leaves out any intermediaries, i.e., the producer sells directly to the consumer.
