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  1. 1-1-the-nature-and-purpose-of-business
    3 主题
  2. 1-2-forms-of-business
    5 主题
  3. 1-3-the-external-environment
    5 主题
  4. 2-1-management-and-leadership
    3 主题
  5. 2-2-management-decision-making
    4 主题
  6. 2-3-the-role-and-importance-of-stakeholders
    3 主题
  7. 3-1-marketing-objectives
    1 主题
  8. 3-2-understanding-markets-and-customers
    5 主题
  9. 3-3-making-marketing-decisions
    2 主题
  10. 3-4-the-marketing-mix
    7 主题
  11. 4-1-operational-objectives
    2 主题
  12. 4-2-operational-performance
    1 主题
  13. 4-3-efficiency-and-productivity
    3 主题
  14. 4-4-quality
    1 主题
  15. 4-5-inventory-and-supply-chain-management
    3 主题
  16. 5-1-financial-objectives
    2 主题
  17. 5-2-financial-performance
    6 主题
  18. 5-3-sources-of-finance
    3 主题
  19. 5-4-cash-flow-and-profit
    1 主题
  20. 6-1-human-resource-objectives
    1 主题
  21. 6-2-human-resource-performance
    1 主题
  22. 6-3-organisational-design
    3 主题
  23. 6-4-human-resource-planning
    4 主题
  24. 6-5-motivation
    4 主题
  25. 6-6-improving-employer-employee-relations
    2 主题
  26. 7-1-mission-objectives-and-strategy
    4 主题
  27. 7-2-assessing-the-internal-position-of-a-business
    10 主题
  28. 7-3-changes-in-the-external-environment
    7 主题
  29. 7-4-the-competitive-environment
    1 主题
  30. 7-5-investment-appraisal
    2 主题
  31. 8-1-strategic-direction
    1 主题
  32. 8-2-strategic-positioning
    2 主题
  33. 9-1-changes-in-scale
    4 主题
  34. 9-2-innovation
    2 主题
  35. 9-3-globalisation-and-internationalisation
    4 主题
  36. 9-4-digital-technology
    1 主题
  37. 10-1-managing-change
    3 主题
  38. 10-2-organisational-culture
    2 主题
  39. 10-3-implementing-strategy
    2 主题
  40. 10-4-strategic-failure
    2 主题
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Influences on place decisions

  • Place in the marketing mix refers to where customers purchase a business’s products and the distribution channels used to move the product from producer to consumer

  • In a competitive environment, location and distribution decisions can give a company a competitive advantage

    • Businesses could locate themselves in areas with high foot traffic to achieve high sales volumes

    • They may use innovative online channels to reach customers who prefer to shop online

  • Changing consumer needs can impact the way businesses distribute their products

    • E-commerce makes it easier for consumers to shop online and have products delivered to their doorstep

      • Many businesses have therefore invested in their online presence, offering convenience and fast delivery to meet customer needs

Factors affecting place decisions

Factor

Explanation

Example

Cost of different distribution strategies

  • Every distribution stage (wholesaler, retailer, delivery firm) takes a share of the selling price

  • Firms compare this cost against the number of customers that can be reached

  • Dell shifted to selling laptops directly online to cut out retailers’ margins and lower final prices

Nature of the product

  • Bulky, fragile or perishable items need shorter, safer routes to the end consumer

  • High-value or highly technical goods may need trained staff to explain them

  • Fresh flowers travel quickly by air freight to florists

  • Apple sells in its own stores so staff can demonstrate devices

Degree of coverage required

  • Should the product be everywhere (intensive), in selected key outlets (selective) or in just a few prestige stores (exclusive)?

  • The choice depends on a product’s brand image and sales objectives

  • Coca‑Cola aims for a global, “every fridge” reach

  • Rolex restricts sales to a limited number of jewellers worldwide

Control over price and promotion at the point of sale

  • Using intermediaries means less say in how products are displayed or discounted

  • Firms wanting tight control create their own stores or websites

  • Nike opened flagship “House of Innovation” stores and its own app to control prices and the image of the brand

Customer expectations

  • Buyers have set habits and expectations about where to find a product and the speed of delivery

  • Ignoring these habits risks losing sales

  • Gamers expect new releases on Steam for instant download

  • Weekly grocery shoppers look for fresh food in local supermarkets, not mail order

Impact of technology on distribution

  • E‑commerce, mobile apps and real‑time tracking allow direct‑to‑consumer sales and faster delivery options

  • Technology can reduce the need for intermediaries

  • Amazon Prime uses advanced logistics and data to offer next‑day (often same‑day) delivery

  • Netflix relies on streaming technology to bypass DVDs and physical stores

Distribution channels

  • Distribution channels refer to the intermediaries through which products move from the business to the end customer 

Different distribution channels

A diagram showing the three different types of distribution channels businesses can use to move products from the manufacturer to the end consumer: four-stage distribution, three-stage distribution and two-stage distribution.
There are three different types of distribution channels businesses can use to move products from the manufacturer to the end consumer

Explanation of the distribution channels

Channel

Explanation

Example

Four-stage

  • Producer → Wholesaler → Retailer → Consumer

  • This channel is commonly used by smaller retail businesses that lack space or sufficient cash flow to hold large amounts of inventory

  • Advantage: Small shops can buy little and often from the wholesaler, so they do not need big, costly storage space

  • Disadvantage: Two extra markups (wholesaler and retailer) push the selling price up for customers

  • The Coca-Cola Company produces soft drinks, which are sold in bulk to a wholesaler

  • The wholesaler sells smaller quantities to a convenience store

  • The convenience store then sells individual soft drinks to the customer

Three-stage

  • Producer → Retailer → Consumer

  • This channel is often used for products with high demand or where the cost of distribution is high

  • This method is also common where customers require support or advice in selecting the product

  • Advantage: Retail staff can give advice and after‑sales help, which suits complex goods such as laptops

  • Disadvantage: Inventory sits in the retailer’s warehouse or shop, tying up cash until each item is sold

  • Toshiba produces laptops and sells them directly to electronics retailers

  • Currys employs knowledgeable sales staff who sell Toshiba laptops to end customers
     

Two-stage

  • Producer → Consumer

  • This channel is commonly used for products that are sold online or through direct sales channels

  • Advantage: No intermediaries mean lower costs, so the firm can offer low online prices or keep more profit

  • Disadvantage: The producer must handle delivery, returns and customer service itself, which can be expensive and time-consuming

  • GermanWings sells its service (airline passenger tickets) directly to the end customer on its website

The growth of multichannel distribution

  • Multi‑channel distribution means making a product available to customers through two or more different channels at the same time

    • For example, physical stores, a branded website, online marketplaces and mobile apps

Reasons for the growth of multichannel distribution

  1. The rise of e‑commerce and smartphones

    • Shoppers now expect to browse and buy anywhere, anytime

    • E.g. Zara allows customers to order via app, website or in store

  2. Click and collect popularity

    • Combining online ordering with store pickup saves delivery fees and brings footfall into shops

    • E.g. Argos reports most web orders are collected in‑store within hours

  3. Need for seamless customer experience

    • Firms link channels so baskets, loyalty points and returns work everywhere

    • E.g. John Lewis & Partners integrates its website, app and department stores under one account

  4. Competitive pressure

    • Rivals offering more choice encourage others to follow

    • E.g. grocery chains such as Sainsbury’s added rapid‑delivery apps after Deliveroo gained market share

  5. Falling technology costs

    • Cloud platforms and third‑party fulfilment companies such as Evri make it affordable even for smaller brands

    • E.g. soft drinks manufacturer Innocent sells direct via Shopify as well as in supermarkets and other retailers

Advantages and disadvantages of multichannel distribution

Aspect

Advantages

Disadvantages

Customer reach

  • Accesses shoppers who prefer different channels, increasing potential sales volume

  • Requires extra marketing to ensure all channels attract enough customers to make them worthwhile

Convenience and loyalty

  • Customers enjoy a choice of delivery, pickup and returns, increasing satisfaction and repeat purchases

  • Slow service on any distribution channel can hurt the whole brand

Resilience

  • If one channel (e.g. high street stores) is disrupted, others (e‑commerce) keep revenue flowing

  • Inventory management is more complex

  • Available inventory must be visible and accurate across all outlets

Data collection

  • Multiple ways to interact with customers generate significant insights into customers’ buying behaviour

  • Greater data‑handling costs and the need for robust digital security systems

Revenue opportunities

  • Creates the ability to upsell (add accessories online) or cross‑sell (store staff recommend linked items) across distribution channels

  • Risk of channel conflict — online prices or promotions may not be matched in store, confusing customers