Distribution Channel - Place |
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The distribution channel (Place), element of the Marketing Mix, is directly linked to the logistic function; the distribution channel’s function being to deliver the correct product quantity, in the correct place and at the correct moment. The distribution channel corresponds to all the intermediaries between the end of product production and its consumption. Kotler defined the 4 following levels : 0 level: Producer - Consumer 1 level: Producer - Retailer - Consumer 2 levels: Producer - Wholesaler - Retailer - Consumer 3 levels: Producer - Wholesaler - Jobber - Retailer - Consumer
The distribution channel has to be chosen according to the service level expected by the customer. This service can be the lead time necessary to obtain the product, availability, delivery, installation, After Sales Service, payment terms, available ranges of products … It is also important to take into account each channel context in terms of image, cost, legal, balance of power between the participants and availability. The choice of a distribution channel will also depend on the capacity of the product to support the distribution cost of the considered circuit, and on the control level over the product distribution. In relation with this last point, we distinguish 3 types of distribution: intensive distribution: the product is stored in the majority of the resellers selective distribution: only certain resellers can commercialize the product exclusive distribution: only specialized and authorized resellers can sale the product. Generally, this distribution method comes along with the ban for the reseller to commercialize competitor’s products
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Spec Sheets 
