2.6 The Marketing Mix: Place

What is 'Place'?

Place refers to how and where a product gets from the producer to the consumer. It involves decisions about distribution channels, storage, transportation, and location so the product is available at the right time and location for the target market.

Distribution Channels

A distribution channel is the path a product takes to reach the customer. Direct distribution sells straight from producer to consumer (e.g., a farmer's market stand). Indirect distribution uses intermediaries like wholesalers and retailers, adding steps but often expanding reach and convenience.

Channel Intensity

Businesses choose distribution intensity based on their product and goals. Intensive distribution puts products in as many outlets as possible (e.g., snacks). Selective distribution uses a limited number of outlets (e.g., electronics). Exclusive distribution uses only one or few outlets, often for luxury or specialty goods.

Key terms

Place (marketing mix)

The element of the marketing mix focused on how and where a product is distributed to consumers.

Distribution channel

The path a product takes from producer to consumer, direct or through intermediaries.

Direct distribution

Selling a product straight from the producer to the consumer with no intermediaries.

Intensive distribution

A strategy of placing a product in as many outlets as possible to maximize availability.

Exclusive distribution

A strategy limiting product sales to one or very few outlets, often for luxury goods.

Try an AP-style question

A direct distribution channel means…

1. using wholesalers and retailers
2. selling straight to consumers
3. exporting through brokers
4. selling only through agents