the marketing mix: place (methods of distribution (department stores,…
the marketing mix: place
very simple (manufacturers directly to the customer)
suitable for certain agricultural products
lower price if sold directly to customers
can be sold by mail order catalogue or via the internet
usually impractical (consumers probably don't live near factories)
may not be suitable for products which cannot be sent easily by post
may be very expensive to sent the products by post (not cost effective)
producer sells large quantities to retailers
reduced distribution costs compared to distribution channel 1
no direct contact with customers
wholesalers saves storage space for small retailer and reduces storage costs
small retailers can purchase products in small quantities from wholesaler (relatively short 'shelf life')
may give credit to the customers (take their products straight away and pay a later date)
wholesaler may deliver to the small retailer thus saving on transport costs
wholesalers can give advice to small retailers
may be more expensive for the small shop to buy from a wholesaler than if they bought straight from the manufacturer
wholesaler may not have the full range of products to sell
takes longer for fresh produce to reach the shops and so it may not be as good quality
wholesaler may be long way from the small shops
manufacturer may not know the best way to sell the product in other markets
agents will be aware of local conditions and will be in the best position to select the most effective places in which to sell
less control over the way the product is sold to customers
methods of distribution
threats to business
setting up/updating website costs
no direct consumer contact
competition from other websites
opportunities to business
able to access many consumers
shop might not be needed
buyer to buy is easier
selecting the distribution channel to use
what type of product it is?
is the product very technical?
how often is the product purchased?
how expensive is the product?
how perishable is the product?
where are the customers located?
where do the competitors sell their products?