Question

State the components of place mix.

Answer 1

1. Channel of distribution: The route along which products flow from the producer to consumers. The channel of distribution may be direct or indirect. In direct channel there is no middleman or intermediary between the producer and consumers. Door-to-door selling, company owned retail stores, mail order selling, automatic vending machines and online selling are the main forms of direct distribution. In case of indirect channel, wholesales and retailers serve as the links between the producer and consumers.
2. Physical distribution: All the activities involved in handling and physical movement of products are collectively known as physical distribution. Storage, transportation, inventory, control and order processing are the main elements of physical distribution or marketing logistics.