Business – 3.3 The marketing mix – Place (distribution) | e-Consult
3.3 The marketing mix – Place (distribution) (1 questions)
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Primary objectives of a distribution channel:
- Facilitate the efficient movement of goods from producer to consumer.
- Provide market coverage and accessibility for the target customers.
- Reduce transaction costs and time delays.
- Offer after‑sales services, information and support.
- Create a competitive advantage through better service levels.
Reasons for using multiple channels:
- To reach different market segments (e.g., retail, online, wholesale).
- To mitigate risk – if one channel under‑performs, others can sustain sales.
- To maximise market coverage and increase overall sales volume.
- To exploit the strengths of each channel, such as the personal service of a physical store and the convenience of e‑commerce.
- To respond to changing consumer buying habits and technological developments.