Business – 3.3 The marketing mix – Place (distribution) | e-Consult
3.3 The marketing mix – Place (distribution) (1 questions)
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Advantages of Digital Distribution:
- Instant delivery to the customer, reducing lead times.
- Lower marginal cost per unit after the initial set‑up.
- Ability to collect detailed customer data for targeted marketing.
Disadvantages of Digital Distribution:
- Dependence on reliable internet infrastructure and technology.
- Potential for digital piracy or unauthorized copying.
- Limited tactile experience for products that benefit from physical inspection.
Advantages of Physical Distribution:
- Provides a tangible product that can be examined before purchase.
- Supports impulse buying in brick‑and‑mortar stores.
- Enables personal service and immediate after‑sales support.
Disadvantages of Physical Distribution:
- Higher fixed and variable costs (warehousing, transport, staffing).
- Longer lead times and potential for stock‑outs.
- Geographical limitations restrict market reach.