Business Paper 1 - Place (114)

Place

where businesses sell their products and what methods are used to distribute the goods to the customer

marketplace doesn’t have to be physical (e.g. shop), it can be online, over the phone or through mail order etc.

Distribution Channel

the path taken by a product as it goes from the producer to the final customer

these could include a wholesaler, retailer or direct selling

Different Distribution Channels

• producer - wholesaler - retailer - consumer

• producer —————— retailer - consumer

• producer —————————— consumer

• wholesaler buys large quantities from the producer and sells smaller quantities to retailers

• reduction in length of the distribution process cuts costs for large businesses and represents a good example of purchasing economies of scale

Multi-Channel Distribution

combination of distribution channels is used - e.g. a clothing brand can sell their products through their own store, their own website, other retailers and other online platforms