What is place?

Place is the point where products are made available to customers. A business has to decide on the most cost-effective way to make their products easily available to customers.

This involves selecting the best channel of distribution. Potential methods include using:

Retailers, wholesalers, telesales, mail order and e-commerce are channels of distribution
  • Retailers. Persuading shops to stock products means customers can buy items locally. However, using a middle man means lower profit margins for the producer.
  • Producers can opt to distribute using a wholesaler who buys in bulk and resells smaller quantities to retailers or consumers. This again means lower profit margins for the manufacturer.
  • Telesales and mail order. Direct communication allows a business to get products to customers without using a high street retailer. This is an example of direct selling.
  • Internet selling or e-commerce. Online selling is an increasingly popular method of distribution and allows small firms a low cost method of marketing their products overseas. A business website can be both a method of distribution and promotion.

Developing new or improved channels of distribution can increase sales and allow a firm to grow.