AS Marketing - Place :explode: (Chanel strategy : (Where should product be…
AS Marketing - Place :explode:
Important distribution channels as :
Manufacturers need outlets for their products
Retailers will sell producers goods with a mark-up
Consumers need easy access to products
Chain of intermediaries a product passes through from producer to final consumer
Chanel strategy :
Where should product be available?
Should internet be the main channel?
How long should the channel be?
How much control does business need/want?
Should product be sold through retailers?
Does channel support other components?
Should products be sold directly to consumers?
Channels of distribution
One intermediary channel
Two intermediary channels
Direct selling - no intermediary
Factors influencing choice of distribution :
Level of service expected
Technical complexity of product
Geographic dispersion of target market
Unit value of product
Industrial products sold directly
Number of potential customers
Recent trends :
Variety of channels used
Increasing integration of services
Large supermarkets act as wholesalers
Increased internet usage
Viral marketing campaigns + E-commerce