Marketing Mix: Place

Distribution
 Distribution in marketing is an element of the “place” category in the
four P's of marketing.

 Distribution is the process of making a product available for the

consumer or business user who needs it.

 Direct Distribution: Companies sell products and services directly to

customers through their own stores, websites or merchant
marketplaces.

 Indirect Distribution: Companies sell products and services to

customers through marketing channel.
 Distribution
 marketing channel or channel of distribution is a set of
interdependent organizations that eases the transfer of ownership as
products move from producer to business user or consumer.

 A distributor works with the manufacturer to promote and sell its

products to other supply chain entities, either wholesalers or
retailers.

 Wholesalers: buy and sell goods in bulk. Wholesalers can be a link in

the marketing distribution chain, selling their products to retail
stores.

 Retailer: a channel intermediary that sells directly to consumers.

Distribution Channel for Consumer
Products
 In the zero-level channel, the manufacturer sells directly to the
consumer.

 In the one-level channel, the manufacturer sells the product to

retailer who in turn sells it to consumer.

 In the two-level channel, the manufacturer sells its product in bulk

to a wholesaler, who sells the products to retailers where consumers
can purchase them.

 In the three-level channel, the manufacturer works with a distributor

who distributes the products within a specified geographic area and
connects with wholesalers or retailers.
Distribution Channel for Business
and Industrial Products
 Distribution Strategies
 Intensive distribution: involves selling products through a large
number of different channels. Product is made available in
abundance. (convenience product)

 Selective Distribution: Limited number of intermediaries are chosen

to distribute the product. (Shopping Products)

 Exclusive Distribution: The distribution of product is through a

single intermediary in a specific geographic area. (Specialty Products)