The marketing mix — Place

Place = where and how customers buy the product. Even a brilliant product can flop if it's not in the right place at the right time. AQA expects you to know the main distribution channels and how e-commerce has reshaped them.

What does "place" cover?

• Physical location of stores or branches.
• Distribution channels — direct, retailer, wholesaler.
• Logistics — moving goods from factory to customer.
• E-commerce and m-commerce — selling online and via mobile.
• Click-and-collect, same-day delivery.

Distribution channels

1. Direct (producer → customer)

The producer sells directly without intermediaries.

Examples: farm shops, factory outlets, manufacturers' websites (Tesla.com), Apple Stores.

Advantages:

• Higher margin — no middleman cut.
• Direct customer relationship — data, feedback, loyalty.
• Brand control — staff trained, environment matched.

Disadvantages:

• Reach limited — own stores or website only.
• Cost of own stores / sales force.
• Logistics complexity — handle delivery yourself.

2. Single intermediary (producer → retailer → customer)

Most common.

Examples: cereals (Kellogg's → Tesco → customer); books (Penguin → Waterstones → customer).

Advantages:

• Wider distribution — retailers reach many customers.
• Retailer expertise — display, store experience.
• Less direct logistics — retailer handles last mile.

Disadvantages:

• Lower margin — retailer takes cut.
• Less direct customer data.
• Brand at retailer's mercy — display, pricing, presentation.

3. Two intermediaries (producer → wholesaler → retailer → customer)

Common for FMCG with thousands of small retailers.

Examples: drinks (Heineken → Booker wholesale → corner shop → customer).

Advantages:

• Reach — wholesalers serve many small retailers.
• Reduces logistics — fewer shipments to manage.

Disadvantages:

• Even lower margin — two cuts.
• Even less direct contact.
• Slow market response — message has to filter through.

4. Multichannel

Multiple channels at once — own shops, online, retailer, wholesaler.

Most modern brands use multichannel. Apple sells via Apple Stores, Apple.com, plus authorised resellers (John Lewis, Currys), plus mobile carriers.

E-commerce and m-commerce

E-commerce = selling online. M-commerce = selling via mobile app.

How e-commerce changes place

• 24/7 trading — customers buy any time.
• Global reach — small UK firm sells to Australia.
• Lower premises cost — no high-street rent.
• Customer data — every click captured.
• Returns and customer service costs higher — fashion ~30 % return rate.
• Distribution centres dominate — Amazon UK has 30+ fulfilment centres.

Mobile dominates

• 70 %+ of UK e-commerce now via mobile.
• Apps drive engagement (Greggs, Tesco, McDonald's).
• M-commerce includes BNPL (Klarna), digital wallets (Apple Pay), social commerce (Instagram Shop).

Click-and-collect

Customer orders online, collects in store or at a locker.

• Combines online convenience with in-store benefits.
• Reduces delivery cost.
• Drives in-store visits — customers buy extra items (Argos, M&S, Tesco).
• ~60 % of UK consumers used click-and-collect in 2024.

Distribution decisions

Factors:

• Type of product — perishable, bulky, valuable, branded?
• Customer expectations — fast delivery, in-store experience?
• Competition — where do rivals sell?
• Cost — own stores expensive; e-commerce cheaper.
• Brand image — luxury limits to selective channels.
• Geographic scope — local, national, global?

Logistics — getting goods there

• In-house — own fleet (Sainsbury's home delivery vans).
• Third-party logistics (3PL) — DHL, DPD, Yodel.
• Last mile — final delivery to home/store; most expensive part of supply chain.
• Returns logistics — increasingly important; Amazon, Asos lead.

Modern logistics uses real-time tracking, route optimisation, electric vehicles for sustainability.

Examiner tips

For 6+ mark questions on place, link the type of product and customer to the channel chosen. Discuss trade-offs (margin vs reach; control vs cost). Use named businesses with specific channel choices.