Marketing Mix

Place and Distribution Strategies

Introduction

This refers to how an organisation will distribute their product or service to the end user. The organisation must distribute the product to the user at the right place at the right time. Efficient and effective distribution is important if the organisation is to meet its overall marketing objectives. If an organisation underestimates demand profitability will be affected.


Marketing Mix Place Strategies

Indirect Distribution

Indirect distribution involves distributing your product by the use of an intermediary for example a manufacturer selling to a wholesaler and then on to the retailer.

Direct Distribution

Direct distribution involves distributing direct from the manufacturer to the consumer For example Dell Computers providing directly to its target customers. The advantage of direct distribution is that it gives a manufacturer complete control over their product

Intermediaries Defined

Manufacturer: Person, group or firm that makes the product.

Wholesaler: The party that buys large quantities of a product from manufacturers and sells it to retailers. Wholesalers sell goods to other businesses, they do not sell directly to consumers.

Retailers: The organisation that sells products directly to consumers and end users. As they are selling to consumers for personal use, the goods are usually sold in small quantities.

Distribution Strategies

The three most common distribution strategies are discussed below

If a manufacturer decides to adopt an exclusive or selective distribution strategy they should select reputable intermediaries, experienced in distributing similar products and an intermediary known to the target audience.

Click To View LearnMarketing's YouTube Video About Marketing Mix:Place





 

Studying Business Management visit www.learnmanagement2.com