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Place - Coggle Diagram
Place
Channel of Distribution Options
Alternative - manufacturer → retailer → consumer
Direct - manufacturer → consumer
Traditional - manufacturer → wholesaler → retailer → consumer
Agent - manufacturer → agent → consumer
Benefits of a Small Business Using Direct Channels
potential global reach
24/7 convenience for customers
low overheads
higher rates of profit
Challenges of a Small Business Using Direct Channels
increased cost to customer
in-store competitors
hard to become known
loss of expertise
Benefits of Small Business Using Large Retailers
access to research
larger volume of sales
retailers' advertising campaign
in-store exposure
Challenges of Small Business Using Large Retailers
lack of negotiating power
lots of competition
own-brand introductions
Factors to Consider When Choosing Channel of Distribution
market size
online presence
type of good
technological developments
profit margin