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Place: methods of distribution
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Place is about getting products to customers. Today that means shops, websites, or both.
Retailers
Retailers are shops that sell to customers in person, such as supermarkets and department stores.
Customers can see and try products and take them home straight away. But shops have high costs such as rent and staff.
Customers can see and try products and take them home straight away. But shops have high costs such as rent and staff.
E-tailers
E-tailers sell online through e-commerce.
They are open 24 hours, reach customers anywhere and often have lower costs. But customers wait for delivery, cannot try products and may return more items.
They are open 24 hours, reach customers anywhere and often have lower costs. But customers wait for delivery, cannot try products and may return more items.
Choosing distribution
Many businesses use both (sometimes called 'click and collect' or multi-channel).
The choice depends on the product, the target customers and costs.
The choice depends on the product, the target customers and costs.
A furniture firm sells only online. Give one advantage and one disadvantage.
- Advantage: no shop rent; reaches the whole country.
- Disadvantage: customers cannot sit on the sofa before buying.
Answer: Lower costs; customers cannot try products.
Place: products reach customers through retailers (shops) or e-tailers (online). Many businesses use both. The choice depends on the product, customers and costs.
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