One of the "Four P's" of the marketing mix is - this refers to refers to i.e. the process of moving products from the manufacturer to eventual selling points.
Some manufactures supply goods to consumers.but most use such as retailers (shops) and wholesalers (buy from producers; sell to retailers).
Distribution is important. Excellent products with the right features, price and promotion can still fail. The business must also
- Persuade sufficient to stock their products ie secure extensive distribution
- Ensure outlets display, sell and provide appropriate support (looking after the customer once the sale has been made)
- Ensure customers can buy the product easily and at a convenient
Firms must decide on the best distribution system. For example, they must:
- Choose the best outlet for reaching target
- Persuade outlets to stock their products
- Decide on the best method of physically moving products to retail outlets
A is the route a product uses to get from producer to final consumer or how title ownership passes from producer to consumer
A is an intermediary in the channel of distribution that buys from producers and sells to retailers or customers
is where the business sells straight to customers with no intermediaries involved (e.g. Dell computers)
Some retailers are too small to buy direct from a producer - so they use a wholesaler. The wholesaler (i.e. buys large and sells small quantities) for retailers. Some markets are geographically dispersed and difficult to reach. By selling to the wholesaler the producer avoids the cost of storage, shifts some of the burden of transport costs and passes on the risk of ownership.