Page 162 - BA1 Integrated Workbook STUDENT 2018
P. 162

Chapter 11





                           Place





                               Distribution involves getting the right products to the right people at
                               the right time.



                                                  Three forms of

                                                   distribution






                                               One level                        Two level
              Zero level
                                               The manufacturer                 Wholesalers become
                 Product is sold

              directly to the                       deals with retailers        involved and there

              customer, i.e. no                (intermediaries) who             are several
                                               sell the product on to

                                                                                intermediaries
              intermediaries.
                                               customers.                       between the
                                                                                manufacturer and the
                                                                                customers.

                            One and two level distribution involves two types of marketing:





                    Pull strategy – advertising creates consumer demand forcing retailers to stock
                     the product.


                    Push strategy – retailers are offered high margins and therefore stock the
                     product.


















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