Here is some additional information to help you with your assignment work. This first part on Place is hopefully a reminder!
Marketing Mix - Place
What determines where a business should locate?
* There must be customers passing or easily attracted to the place. * There must be affordable business premises available for rent or to buy. * No competitors nearby.
* Permission must be granted. All restaurants and shops need permission to operate. * Staff must be able to work there.
* Good transport links.
* Availability of raw materials e.g. near a fishing port for selling fresh seafood * Larger stores and shops, or very busy places will have other consideration such as parking and other businesses nearby. * The distribution strategy must be known and the role of any intermediaries, for example wholesalers or agents, allowed for.
If a business is selling products, rather than services, it must locate and organise itself so that supplies of goods can reach it efficiently i.e. at the right time and at a low cost. What channel of distribution will they use?
Two types of channel of distribution methods are available. Indirect distribution involves distributing your product by the use of an intermediary for example a manufacturer selling to a wholesaler and then on to the retailer.. Direct distribution involves distributing direct from a manufacturer to the consumer For example Dell Computers providing directly to its target customers. The advantage of direct distribution is that it gives a manufacturer complete control over their product.
Above indirect distribution (left) and direct distribution (right). -------------------------------------------------
Is this too simple? How would you show a supermarket buying direct from a farm? Distribution Strategies
Depending on the type of product being distributed there are three common distribution strategies...