4P’s - Place

Place This refers to the range of mechanisms and channels of distribution which are used to ensure that the product is available to the consumer in a convenient way.

THE CHANNELS OF DISTRIBUTION MANUFACTURER WHOLESALER RETAILER CUSTOMER AGENT

Channel One MANUFACTURER WHOLESALER RETAILER CUSTOMER This is the traditional chain where the wholesaler is used to break bulk into smaller quantities It is used by retailers who cannot buy in large bulk such as small newsagents buying from a cash and carry

Channel Two MANUFACTURER RETAILER CUSTOMER ln this channel - large retailers buy in bulk direct from manufacturers. Savings are made by cutting out wholesalers profit.

Channel Three MANUFACTURER AGENT CUSTOMER With this channel, an agent replaces the traditional retailer with an agent who sells the product on behalf of the manufacturer examples include Avon Cosmetics and Forever living MANUFACTURER AGENT CUSTOMER

Channel Four MANUFACTURER CUSTOMER With this channel, no intermediaries are used and goods are sold directly to the consumer through catalogues, internet etc.

Factors that influence channel of distribution chosen Target Market- profile and location of target market. The product must be available in a convenient location Product Image – the retail outlet should reflect the product image – i.e. designer make up brands such as Mac exclusively sold in Ireland in Mac and Brown Thomas only, not Boots Ease of Delivery – how easy is it to deliver goods to the retailers location, unload products or trailor, park the truck etc Payment Arrangement – some retailers may look for cash on delivery, credit may be offered etc Cost – rent, rates, warehouse costs, costs of transport etc will influence the channel of distribution chosen