1. Place

2. Channels of distribution
The route a product will follow to get from manufacturer to customer
The method chosen must allow products to get to the customer as efficiently as possible

3. Factors which determine method chosen
The actual product eg fresh flowers may need to be sold directly to preserve freshness
The image and exclusivity the manufacturer wants the product to have
Availability of finance
Reputation and reliability of wholesaler and/or retailer
Legal restrictions
Logistics – manufacturers ability to transport and store the product

4. The wholesaler
A wholesaler buys large quantities of items from manufacturers and then sells them on to retailers, or directly to the customer, in smaller quantities.
Many larger retailers do not use a wholesaler as part of their distribution channel because they have their own warehouse and transport systems.

5. Costs and benefits of using a wholesaler
Manufacturer does not have to worry about selling excess stock if there are changes in consumer tastes eg fashion
Manufacturer loses control over what happens to the product after it is sold on
Risk of not selling the product to the retailer or customer is removed
Less profit for the manufacturer as they do not sell directly to the customer
The wholesaler may promote the manufactured product resulting in reduced costs for the manufacturer
Retailers cannot obtain loyalty or discount benefits which they may have been able to gain from the manufacturer
Distribution and storage costs are reduced as products are sold in bulk
Retailers can buy smaller quantities from the wholesaler reducing storage costs

6. RETAILER
A Retailer distributes products to the customer on behalf of the manufacturer. Retailers generally stock a range of products from a number of manufacturers/ retailers. The retailer will decide on the quantity to order, price to be charged and how to display the products. Large retailers can take advantage of economies of scale (bulk buying discounts).
The Manufacturer will decide which retailer to use based on where the customers are and what extra services eg credit and delivery terms, they offer the customer. Some manufacturers will decide not to use a particular retailer because their products will face competition in store.

7. Types of retailers
The changing business environment influences the popularity and growth of different retailers. Changes in retailing trends:
Supermarkets: Mainly supply food and drink but have branched out into selling eg homeware, clothes and electrical items. Large supermarkets have put many smaller business out of business in some towns/cities
Discount Retailer: provide non-branded items at a cheap price. These stores have grown in popularity due to the economic climate.

8. Types of retailers
E-tailer – shopping online and having products delivered to you eg Amazon. This type of retailer often has lower overhead costs because they do not have to worry about having stores on the high street.
Convenience Retailer – often referred to as the “corner shop”. This type of retailer is normally a small shop with a limited amount of products. Usually situated in busy residential areas and are normally more expensive than supermarkets.

9. Direct Selling
Marketing and selling straight to the customer from a supplier, away from a fixed location (ie cutting out the middle man).
Methods:
Internet selling
Personal sellling
Direct mail
Mail order
Shopping channels
Specialist magazines

10. Internet Selling (e-tailing/e-commerce)
Internet selling/e-tailing = involves selling products through an internet website. The website can also be used to advertise products.
S-commerce = use of social media

11. Internet Selling (e-tailing/e-commerce)
A supplier can:
Reach a wider market/global market
Save additional costs of opening a shop
Keep in touch with customers
Earn more profit from a growing market
Provide people with more information by
Build a stronger reputation and customer loyalty
Carry out market research

12. A customer can: Save money – many products are cheaper
Shop from the comfort of their own home
Save time – no parking problems, etc
Get goods delivered directly to their door
Obtain goods that are not stocked in shops
See goods before they buy – eg video clips, jpeg images
Check stock levels instantly and reserve products
Compare prices of products from a variety of suppliers

13. Drawbacks of using the Internet
Technical issues eg: computer breakdown, power cuts and transmission interruption
Time delay between ordering and receiving products
Items may be lost or damaged in transit
Lack of personal contact
Security risks eg credit and debit card fraud
Customer unable to handle products before ordering

14. Personal Selling
Involves a trained sales staff selling products directly to the customer
Allows demonstration or explanation
BUT
Customers might feel pressurised into buying the product

15. Direct Mail Leaflets sent directly to households
Targets a specific segment
Reaches wide geographical areas
BUT
Customers may find volume of junk mail annoying

16. Mail Order Buying through a catalogue Offers credit facilities
Can be exclusive (only way to buy)
Saves cost of retail premises
BUT
Involves high advertising costs
Incurs high levels of bad debts
Lack of personal service
Numerous goods returned

17. Shopping Channels Expert description and demonstration of product
Most offer automated ordering
Possible membership benefits eg discount
BUT
Time wasting
Often have to pay for return postage

18. Specialist Magazines
Describes/sells specialist products to enthusiasts
Order by phone or post
Target market – common interest
BUT
Limited market