Distribution Decisions (PLACE):

The third element of the marketing mix is distribution. This refers mainly to the movement of goods and services from producer to the consumer through a given channel of distribution.

A channel of distribution has been defined as a chain of market intermediaries or middlemen used by a producer or a marketer to make products and services when and where consumers or users want them. It is therefore a route followed by a product as it moves from the producer to the user.

Examples of Channels

          P - C                            Zero level

          P - R - C                       One level

          P - W - R - C                Two level

          P - A - R - C                 Two level

          P - A - W - R - C                       Three level

 P = Producer, A = Agent, W = Wholesaler, R = Retailer, and C = Consumer