Distribution (place)

influences on distribution

• scope/scale

• nature of the product

• control over promotion and pricing

• expectation of customers

scope/scale

• product sold internationally may require distribution thru extensive network of wholesalers, agents and distribution companies.

• by contrast a local business may simply require one retail outlet

nature of the product

• some products are not suitable for certain channels.

• for example, it can be difficult and costly to ship plants, flowers and other delicate objections

control over promotion and pricing

• business may opt to use own website or retail chain if controlling these factors is important

Expectations of customers

• will customers expect to access the product via multi-channels or will one suffice.

channels of distribution

• many modern products use multiple channels like- direct, click and collect and in-store purchasing.

• each stage in the distribution network adds to the cost and / or adds value therefore increasing the price.

Value of digital marketing and e-commerce

• allows small businesses to target global market

• allows a business to gather customer information easily

• opportunity to personalisation and involving customers in design of products

• builds rs thru more personal service by tracking buying habits

• targeting specific segments is much easier - even on an individual basis.