The Place
Specification:
2.4 Using the Marketing Mix – Place • channels of distribution to enable growth • selecting channels of distribution |
Candidates should be familiar with the different channels of distribution used by businesses to gain access to potential customers. These include: retailers, wholesalers, telesales, mail order and
internet selling. Candidates should be able to recognise the appropriateness of each distribution method for a given scenario. |
Place - Distribution Channels
Learning Objectives:
- To understand the different channels used by businesses to distribute their goods (D-E)
- To analyse the different distribution channels available to a growing business (B-C)
- To evaluate the most effective distribution channel for a given business (A*-A)
- To understand the different channels used by businesses to distribute their goods (D-E)
- To analyse the different distribution channels available to a growing business (B-C)
- To evaluate the most effective distribution channel for a given business (A*-A)
Starter Activity: How does a Cadbury's Dairy Milk end up at your house? Draw a diagram.
The distribution channel (or chain of distribution) describes how the ownership of the product passes from the producer to the final customer.
place_worksheet.pub | |
File Size: | 739 kb |
File Type: | pub |
Wholesalers and retailers are intermediaries in the distribution channel. They are organisations that provide a service and help get the products from the producer to the customer.
Levels of Distribution
Zero level - No intermediary
One level - Produce to retailer
Two level - Producer to wholesaler to retailer
One level - Produce to retailer
Two level - Producer to wholesaler to retailer
Selecting the Right Distribution Channel
Costs - What are the costs associated with distributing using intermediaries?
Lack of Control - Will using an intermediary affect the way the product is perceived and will this be an issue to the producer?
Product - Are your products convenience products (milk) or specialty items (sports cars)? This can affect where you distribute your product.
If distribution is not right, then this could affect sales, image and your costs.
The growth of the internet had made it much easier for businesses to reach their customers directly. Using a retailer however, allows advice to be received but it is more expensive.
The growth of the internet had made it much easier for businesses to reach their customers directly. Using a retailer however, allows advice to be received but it is more expensive.
place_9_marker.doc | |
File Size: | 145 kb |
File Type: | doc |
Plenary: Why do you think in the future we will see more direct zero-level distribution channels?
S+C: Is place the most important aspect of the marketing mix? (9 marks)
S+C: Is place the most important aspect of the marketing mix? (9 marks)