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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 Ps Place Product Pricing Promotion Process Physical environment People 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 andor 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 wwwbizedcouk 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 Channels 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 Direct channels Looking at Table 1 you can see a diagram of how direct channelling works No1 on the table shows a direct link from the producermanufacturer to the customer It involves no inventory whatsoever So costs are kept to a minimum An example of a company that uses this technique
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