Marketing Mix-Place

Channels of distribution

The channel of distribution is the way in which the product gets from the manufacture to the consumer.

Finance

Companies may not have the money required to set up distribution directly to the consumer and would therefore be reliant on a wholesaler or retailers to distribute there products.

Image

Where a product is sold can influence how it is perceived. Premium products will only be sold at certain retailers that are able to maintain the quality image of the product.

Legal restrictions

Some products such as alcohol and medicines can only be sold through licensed premises.

Product

The type of product being sold will affect which channel of distribution is chosen.

Size

if a product has a large market such as popular brands of food or dink the company will meed to use wholesalers and retailers to ensure that demand of the product is met.

Direct selling

This is when the product goes directly from the manufactures to the consumer.

Mail order

This is when goods are ordered through a catalogue.

E-commerce

This involves the buying and selling of products over the internet.

Direct mail

This is when a company posts letters or advertising leaflets to consumers with details of their products.

Personal selling

This is when a sale person will come to your door or sell to you over the phone.

Wholesaler

The role of the wholesaler is to buy bulk orders from the manufacturer and divide them into smaller amounts to sell onto the retailer or consumer.

Costs

Manufacturer will lose some profit to the wholesaler.

Manufacturer loses control of how the product is sold and marketed.

The wholesaler may damage the reputation of the manufacture if the product is not sold correctly.

Benefits

Reduces transport costs for manufacturer as wholesalers buy products in bulk.

Wholesaler takes on the risk and cost of storing the stock.

Wholesaler can repackage and label product in smaller quantise meaning less work/costs for the manufacturer.

Retailer

A retailer sells goods to consumers often in smaller quantities than a wholesaler.

Costs

Manufacturer will lose some profit to the retailer.

Products in retailers are often displayed next to the competition.

Manufacturer loses control of how the product is sold and marketed.

Benefit

Convenience retailers are located close to customers.

The retailer displays and markets the goods for the manufacturer and offers after sales service.

Retailers can provide customers with information about the product.

Independent stores

Independent stores are small retail businesses set up by individuals or small groups of partners.