Discuss why Place, or Distribution, can become the element of the marketing mix that causes the biggest headache to the manufacturer.
A Marketing Channel is a channel of distribution, or group of interrelated intermediaries which direct products to consumers Dibb & Simkin 1994
A channel of distribution comprises a set of institutions which perform all of the activities utilised to move a product and its title from production to consumption
Bucklin - Theory of Distribution Channel Structure (1966)
Organisations achieve marketing goals through the manipulation of the marketing mix; the seven P's
* Physical environment
In this assignment I am going to look at how and why companies select different methods of distribution channels. I will be looking at Place. Place is also known as channel, distribution, or intermediary. It is the mechanism through which goods and/or services are moved from the manufacturer/ service provider to the user or consumer.
Chooosing the right method is vital for the company.
Typical Distribution Channels: Table 1 www.bized.co.uk
In typical distribution channels, there is a manufacturer of the product, a wholesaler who acts as an intermediary to the manufacturer who then sells to retailers, who ultimately sell to the customer.
Some manufacturers may decide to go directly to the retailer or the consumer skipping a stage in the distribution channel.
* Direct channels
* Indirect channels (intermediaries)
Channels of distribution are basic to the marketing strategies of firms, and have been shown to be a key element in the marketing mix.
Looking at Table 1 you can see a diagram of how direct channelling works. No.1 on the table shows a direct link from the producer/manufacturer to the customer. It involves no inventory whatsoever. So costs are...