Place This is the location of where the product or service can be found by the customer but it also refers to the distribution channel, i.e. how the product or service passes from the manufacturer to the customer. Most manufacturers do not sell their goods directly to the final users – they use marketing intermediaries to help them sell their products to consumers, e.g. Kelloggs Cornflakes is sold to us via intermediaries such as Tesco and Asda.
Distribution channels A distribution channel is made up of all the marketing intermediaries who are involved in getting the goods from the manufacturer to the ultimate consumer. The diagram below shows a typical distribution channel in the home market. A traditional distribution channel Manufacturer Wholesaler Retailer Consumer
Why use intermediaries? • Manufacturers may lack the specialist know-how of retailers. • Customers may live too far away to allow the manufacturer to reach them directly. • They allow the manufacturer to make better use of resources in other areas, e.g. research or product development. • Intermediaries help in the collection of market research.