The Role of Place in the Marketing Mix
- Place in the marketing mix refers to where customers purchase a businesses products and the distribution channels used to move the product from producer to consumer
- In a competitive environment, location and distribution decisions can give a company a competitive advantage
- Businesses could locate themselves in areas with high foot traffic to achieve high sales volumes
- They may use innovative online channels to reach customers who prefer to shop online
- Changing consumer needs can impact the way businesses distribute their products
- E-commerce makes it easier for consumers to shop online and have products delivered to their doorstep
- Many businesses have therefore invested in their online presence, offering convenience and fast delivery to meet customer needs
- E-commerce makes it easier for consumers to shop online and have products delivered to their doorstep
Types of Distribution Channels
- Distribution channels refer to the intermediaries through which products move from the business to the end customer
Diagram of the Different Distribution Channels
There are three different types of distribution channels businesses can use to move products from the manufacturer to the end consumer
Explanation of the Different Distribution Channels
Channel |
Explanation |
Example |
Four Stage |
|
|
Three Stage |
|
|
Two Stage |
|
|
E-Commerce
- Distribution channels have been impacted by social trends such as the growth of e-commerce and the shift from product-based businesses to service-based businesses
- Businesses have adjusted their distribution strategies to better meet the needs of customers and stay competitive
The Growth of E-commerce
Explanation |
Example |
|
|