Place

• Channels of Distribution - the different methods of getting the product from the producer to the consumer. The method of distribution depends on the type of product.
• 1. Manufacturer ------------------------------> Consumer
  2. Manufacturer ------------------> Retailer ---> Consumer
  3. Manufacturer ---> Wholesaler ---> Retailer ---> Consumer
  4. Manufacturer -----------> Agent -----------> Consumer

  The method used depends on the type of product. If the goods are perishable, a short channel is needed. If the goods aren't perishable, a longer channel can be more appropriate.
• Distribution channel used depends on:

  • Product type - if goods are perishable, ex) milk, bread, then a short channel is needed. For non-perishable goods, a longer channel is needed.
  • Availability of Technology - if consumers have access to technology, a shorter channel from producer directly to consumer can be used.
  • Cost - when there are more middlemen in the distribution channel, ex) agent, retailer, then a cut is taken for themselves, leading to a higher price for consumer.