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Place Statregies - Coggle Diagram
Place Statregies
Marketing channels for consumer products
Direct Channel
Producer -> Customers
Retailer Channel
Producer -> Retailer -> Consumers
Wholesaler Channel
Producer -> Wholesalers -> Retailers -> Consumers
Agent/Broker Channel
Producer -> Agent/Broker -> Wholesalers -> Retailers -> Consumers
Levels of Distribution Intensity
Intensive
Maximum market coverage
Having your product available in every outlet where your target consumers might want to buy it
Mass-market approach
: Coca Cola, Cadbury, Panadol, Smiths chips
Selective
Utilise selected intermediaries who meet a certain criteria
Achieved by screening dealers to eliminate all but a few dealers in any single area
The consumer must actively seek out the product
Nike, Converse, Beats headphones, Fender guitars
Exclusive
Work with a single intermediary for products that require specifically resources or positioning
Used for speciality goods
Can convey exclusivity or high luxury
Gucci, Rolex, Tesla, boutique outlets, sole traders who sell their own handmade goods
Factors affecting channel choice
Market factors
Who are the potential customers?
What/where/when/
how do they buy?
Product factors
Standardised vs customised
Product’s life cycle
Delicacy: fragile, perishable
Producer factors
Direct distribution and control
Channel and channel members
Channel
The path a product takes to move from manufacturer/producer to the final consumer
Transfer is facilitated by independent organisations
Channel members
All parties in the channel who negotiate with one another, buy and sell products, and facilitates the change of ownership between buyer and seller in the course of moving the product from the manufactures into the hands of the final consumer