AQA · GCSE · Business
Course version: 8132 · Version from Sept 2017
Price, product, promotion and place (4Ps): Place (the different channels…
Full specification wording
The elements of the marketing mix: price, product, promotion and place (4Ps): Place (the different channels of distribution used by businesses):
Place in the marketing mix refers to how a product reaches the customer, using different channels of distribution.
Checked against the AQA 8132 specification (opens in a new tab) on .
- Point 68 of 80
- 4 key terms
Study notes
From the checked teaching notes for this specification point.
The idea
Place in the marketing mix refers to how a product reaches the customer, using different channels of distribution. A channel is the route from producer to consumer. Common channels include selling directly to customers through a physical shop or online store, using retailers or wholesalers, or using agents and distributors. A direct channel gives the business more control over price and customer experience but requires investment. An indirect channel, such as selling through a supermarket, reaches more customers quickly but reduces the producer's control and margin. For example, a small clothing brand might sell directly through its website and also through a department store. The choice depends on the product, target market, cost and desired level of control.
What earns the marks
- Defines place as the channel of distribution used to get the product to the customer.
- Identifies at least two channels of distribution, such as direct selling, retail, wholesale or online marketplaces.
- Explains how a chosen channel affects the business, for example direct online selling may increase margin but requires delivery and website costs.
- Compares direct and indirect channels in terms of control, cost, reach and customer experience.
- Recommends a suitable channel for a given business context and justifies the choice using the product and target market.
Common mistakes and how to put them right
Confusing place with the physical location of the business only.
Put it right: Place includes all channels of distribution, including online and intermediaries.
Assuming more intermediaries always mean lower prices for customers.
Put it right: Each intermediary adds costs, which may increase the final price.
Ignoring the impact of channel choice on control and brand image.
Put it right: Indirect channels can reduce the producer's control over how the product is presented and priced.
Exam tips
- Name the specific channel you are discussing, such as direct online sales or selling through a wholesaler, rather than saying 'place' generally.
- Use a comparison of two channels to show understanding of trade-offs between reach, cost and control.
- Apply the channel choice to the product and target customer to justify your recommendation.
Try the lesson
The start of the The elements of the marketing mix: price, product, promotion and place (4Ps): Place (the different channels of distribution used by businesses): lesson, made from checked teaching notes for this specification point.
Have a go first
In the marketing mix, what does 'place' refer to?
Listen
Place in the marketing mix refers to how a product reaches the customer, using different channels of distribution. A channel is the route from producer to consumer. Common channels include selling directly to customers through a physical shop or online store, using retailers or wholesalers, or using agents and distributors. A direct channel gives the business more control over price and customer experience but requires investment. An indirect channel, such as selling through a supermarket, reaches more customers quickly but reduces the producer's control and margin. For example, a small clothing brand might sell directly through its website and also through a department store. The choice depends on the product, target market, cost and desired level of control. A strong answer earns marks for these points. Defines place as the channel of distribution used to get the product to the customer. Identifies at least two channels of distribution, such as direct selling, retail, wholesale or online marketplaces. Explains how a chosen channel affects the business, for example direct online selling may increase margin but requires delivery and website costs. Compares direct and indirect channels in terms of control, cost, reach and customer experience. A common slip: Confusing place with the physical location of the business only. Instead, place includes all channels of distribution, including online and intermediaries. Exam tip: Name the specific channel you are discussing, such as direct online sales or selling through a wholesaler, rather than saying 'place' generally.
See it
Key words
Say what each word means before you turn the card.
Place
Try answering aloud or in your head before turning the card.
Channel of distribution
Try answering aloud or in your head before turning the card.
Direct channel
Try answering aloud or in your head before turning the card.
Indirect channel
Try answering aloud or in your head before turning the card.
See every definition
- Place
- The different channels of distribution used by businesses to get the product to the customer.
- Channel of distribution
- The route from producer to consumer, such as selling directly through a physical shop or online store, or using retailers, wholesalers, agents or distributors.
- Direct channel
- Selling directly to customers, which gives the business more control over price and customer experience but requires investment.
- Indirect channel
- Selling through an intermediary such as a supermarket, which reaches more customers quickly but reduces the producer's control and margin.
Label the diagram
Some boxes have lost their names. Pick the right name for each number.
1Box 1
2Box 2
3Box 3
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