After the product, price, and advertising has been determined, the product/service needs to be available to the buyer where and when they want to buy. Consumers should be able to get to the product easily, and the product has to be in the right place (e.g. expensive chocolate shouldn’t be in a small supermarket) to sell well.
Businesses need to know how to get the merchandise to the buyer. Channel 1: The maker sells directly to the customer. Channel 2: Involves offering to suppliers. Common when the merchant is large or the merchandise is expensive. Channel 3: Involves the product going through wholesalers as well. Wholesalers break bulk, so that suppliers can purchase them in smaller amounts. This is common for perishable items such as foods.
Channel 4: Involve selling the product overseas through an agent, who markets them to wholesalers on behalf of the company. This can be because he/she has better knowledge of the neighborhood conditions. Department stores: Usually in the center of town that markets an array of goods from many makers. Chain stores: Several which includes the same name/characteristics. Discount stores: Offers an array of products, including branded products, at discount prices. All the products are similar Often.
Superstores: Large out-of-town stores. Supermarkets: Very large shops with all sorts of goods. Direct sales: Goods can be purchased directly to the consumer. Internet/e-commerce: Customers order via the internet by looking at the web site. The use of the internet to handle business transactions. Businesses could connect via email as well. Producers as well as suppliers may use the internet to market to customers.
Reduces storage costs for retailers and manufacturers. Fewer transactions are needed for the producers. Gives credit to small retailers. May deliver to small suppliers, reducing their transportation costs. Promotion carried out by wholesaler instead of producer. They give advice to retailers/producers on what is selling well. More expensive for small retailers.
May not have the full range of products to market. Takes much longer for perishable products to attain the dealer. Wholesaler may be far from small shops. Is it sold to other producers or customers? Maybe the product very technical? Will you need to explain how to use the merchandise? How often is the product purchased?
If it is purchased every day, it should be available in many retail outlets, otherwise people may not bother to buy it at all. How expensive is the merchandise? If it is having and expensive an image of being expensive, then it shall be sold in a restricted quantity of shops. How perishable is it? If it is very perishable, the clients should be reached by it quickly or be accessible in many outlet stores so it can be sold quickly. Channel 4 might be utilized for customers overseas. E-commerce would be viable anywhere apart from the countryside. Where do competition to sell their products?
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Usually companies will sell their product in retail stores where their rivals sell too so that they can compete directly for consumers. This is exactly what kind of vehicles are accustomed to transport the merchandise. They should be enough for the product to reach its destination in time fast. However, they need to also be cost efficient and safe. These factors a taken into account when deciding which approach to transportation is used.
Require no rail links. Can advertise on the side of lorries. Not affordable if lorries aren’t used often, may need to hire a specialist transport business instead. Cheaper and faster than road haulage Even. Helpful for long distances. Goods need to be transported to retail stores by road haulage by the end of the destination. Good for products too big/heavy to be carried by street/train far.