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4.5 The four Ps - product, price, promotion and place ('Place'…

- - - - Should the product be sold directly to consumers?
      - Should the product be sold through retailers?
      - How long should the channel be (how many intermediaries)?
      - Where should the product be made available?
      - Should electronic methods of distribution be used?
      - How much will it cost to keep the stock of products on store shelves & in channel warehouse?
      - How much control does the business want to have over the marketing mix?
      - How will the distribution channel selected support the other components of the marketing mix?
    - - Industrial products tend to be sold more directly with fewer intermediaries than consumer goods
      - Geogpahical dispersion of the target market - if target market is large & widely spread, using intermediaries is more likely
      - The level of service expected by consumers
      - Technical complexity of the product e.g. business computers are sold directly as they require a great deal of technical sales staff know-how & a supporting service team
      - Unit value of the product - it may be worth employing sales staff to sell directly to customers if the unit cost is high
      - Number of potential customers - if the number of potential customers is few, as with commercial aircraft, direct selling might be used, but Nike or Reebok with their millions of customers for sports shoes worldwide would use intermediate channels to distribute their products