Distribution

Distribution (or "Place") is the fourth traditional element of the [?] mix. The other three are Product, Price and [?].


The Nature of Distribution Channels

Most businesses use third parties or intermediaries to bring their products to market. They try to forge a "distribution channel" which can be defined as

"all the organisations through which a product must pass between its point of production and consumption"

Why does a [?] give the job of selling its products to intermediaries? After all, using intermediaries means giving up some control over how products are sold and who they are sold to.

The answer lies in efficiency of distribution costs. Intermediaries are specialists in selling. They have the contacts, experience and scale of operation which means that greater sales can be achieved than if the producing business tried run a [?] operation itself.