| What is Place? | -Refers to where the Product is sold, and how it gets it over there |
| What are the Types of Distribution | -Physical Distribution; Handling, Movement and Storage of Goods from the Producer to the Consumer via the Channels of Distribution
-Digital Distribution; A download of the Goods or Services. No Physical Product is Moved |
| What is the Objective of Distribution | Making Products available in the Right Place at the Right time in the Right Amount |
| How is Distribution Influenced by? | -How can the Business know that the Product reaches the Existing and Potential Customers
-How and Where do Customers buy the Product most Preferable
-How important are Stock, Availability, Price and Speed? |
| What is a Distribution Channel? | -Moves the Product through the Stages starting from Production to Consumer |
| What could be in the Distribution Channel? | -Producer gives the Goods and Services
-Wholesaler buys the Product in Massive Quantities from the Producer. Then sells it to the Retailers in Smaller Stock
-Retailers shop the Products that are gained from the Wholesaler. This can be done Physically or Online
Each party in the Distribution Channel is called an Intermediary
[Keep in mind, this is a Physical Distribution] |
| Advantages of using Intermediaries? | -Gives access to large number of Customers for the Producer. [Wholesalers and Retailers]
-Saves Costs for the Producers; saves them the Hassel of distributing directly to many different customers in different areas across the World [Potentially] |
| Disadvantages of using Intermediaries | -Increased Price at each Stage due to them wanting a Profit. This makes the Product more Expensive.
-Producer may lost Control of how and where the Product has gone off to. The Producer may not feel ok with how its being Displayed or Promoted. |
| Give ways of the Distribution Channels | 1.
Produce--Wholesaler--Retailer--Consumer
Produce sells to the Wholesaler, then gets sent to the Retailer, then to the Consumer
-Advantages; Reduces the Producers Transport costs [Fewer journeys to the Wholesaler then to the Retailer]
-Retailers can have Small Amounts from Wholesalers, making it more Controlled
2.Producer--Retailer--Consumer
Producer sells to the Retailers then to the Consumer
Retailers directly Trade with the Customers, Online or Physically.
3.
Producer--Consumer
This is Direct Marketing, where the Producer and Consumer deal Directly with Each other
Some ways this can happen are:
-Mail Order Business [Customers chose from Catalogues and Order Direct
-Telesales; Products sold over the Phone
-Online Selling via E-commerce and M-commerce [E-commerce is selling goods and services online, M-commerce is mobile devices used to shop, buy and sell Products.] |
| Advantages of Digital Distribution | -Cost saving; nothing spent physically moving the Product around
-New and wider Markets on the Internet
-Very easy to do so [Buy, Browse]
-Fast to download/buy |
| Dis-advantages of Digital Distribution | -Type of good; some types may not be good for Digital Distribution
-Pay specialist workers to operate Digital Platforms
-Content could be copied and sold illegaly
-Customers have to have Internet |
| What could affect the Choice of Distribution | Nature of Product. Is it;
-Fragile, Perishable
-Technical, Complex
-Customised
-Type of Product [Convenience, Shopping, Speciality]
-Image for the Product
The Market. Is it;
-Geographically Spread
-Extent and Nature of Competitions
The Business
-Size
-Nature
-Does it have an Established Distribution Network
-Does it want Control over how its Distributed |
| What could a Poor Distribution Choice lead to? | -Sales; If its not where Customers want it to be, they may buy off someone else, tanking your sales
-Image; Marketing Mix needs to make sense with the Place. High Quality Items with a Hefty Price tag ain't going to do well in a Supermarket
-Price; Intermediaries all want Profit. The more of them, the more expensive the Product will be |
