Place


Place relates to where the business sells its product to their customers. The business will choose how the product will get to their consumer. This is called their channel of distribution.


Channels of Distribution


1. Traditional Manufacturer -> Wholesaler -> Retailer -> Consumer


Soft drinks


Businesses like Coca-Cola might sell crates of soft drinks to wholesalers, such as Musgrave. The wholesaler sells them to shops in smaller quantities, where the consumer can buy a can.


2. Alternative Manufacturer -> Retailer -> Consumer


TVs


A business like Samsung could sell TVs to retailers, such as Currys, who then sell them to the consumer. This type of good may not go through a wholesaler as TVs are too bulky and not ordered in large quantities, so they can go directly to the retailer.


3. Direct Manufacturer -> Consumer


E-commerce sites


A business like Gym+Coffee could sell its hoodies straight to their customers through their own website and shops in Dublin and Cork. This channel does not use a retailer or wholesaler, so Gym+Coffee keeps more of the profit on every hoodie sold. TikTok stores and other social media stores are also direct routes to the consumer.


4. Agent/Platform Manufacturer -> Agent / Platform -> Consumer


Insurance Brokers, Just Eat


Businesses like Aviva Insurance could use brokers, such as Chill.ie, to sell its car insurance policies. Restaurants use food delivery apps like Deliveroo to take orders and deliver their food.


Wholesaler Consumer Manufacturer


Retailer


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STRAND 2 CHAPTER 21: The marketing mix


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