Place

Place refers to physical location and channels of distribution

Channels of distribution

How a product gets from the producer to the consumer

There are four main channels of distribution:

• 1. Producer – consumer – this is generally used for small businesses e.g. farm shop
• 2. Producer – Wholesaler – Consumer – Here the wholesaler acts as an intermediary for the producer and is able to carry a number of different producers products e.g. furniture
• 3. Producer – Wholesaler – Retailer – Consumer- This is common for clothes
• 4. Producer – Retailer – Consumer – this is often used for electrical products

Each link in the chain of distribution adds costs onto the final product and makes it more expensive for the end consumer. Wholesalers and retailers can provide important functions for producers especially as they grow larger. By using wholesalers and retailers businesses can loose control over the promotion of their products

Location

Businesses need to consider a number of factors when considering their location including:

• Historical factors
• Cost of premises
• Space and land
• Transport links
• Proximity to suppliers / customers.