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The Marketing Mix : Place (methods of distribution (department stores,…
The Marketing Mix : Place
distribution channel
means by which a product is passed from the place of production to the customer
Distribution channels
direct
simple
suitable for products e.g. food
lower price
mail order/catalogue
impractical for most
can be very expensive
retailer only
large quantities sold
reduced distribution cost
no direct contact
price is often higher
wholesaler and retailers
save storage space
small retailers purchase from wholesailers
credit to retail customer
saves transport goods
advice given
more expensive
may not have full range of products
longer for fresh products to reach shops
consumer price is higher
additional intermediary
manufacturer may not know best way to sell
agents will aware of local conditions
producer has less control
methods of distribution
department stores
chain stores
discount stores
superstores
supermarkets
independent retailers
direct sales
mail order
internet/e-commerce
Selecting the distribution channel to use
what type of product is it?
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?