A brilliant product at a perfect price still fails if customers cannot find it where and when they want to buy. Place, also called distribution, is the part of the marketing mix that answers three questions: who will sell the product to the customer, how many places will carry it, and how will it physically get there on time and in good condition?
Channels of Distribution
- Direct channel: producer → consumer. The producer sells straight to the customer through its own website, farm stand, factory store or sales staff.
- Retailer channel: producer → retailer → consumer. The producer sells to stores, which sell to shoppers.
- Wholesaler channel: producer → wholesaler → retailer → consumer. A wholesaler buys in huge quantities and resells smaller amounts to many retailers.
- Agent channel: producer → agent (or broker) → wholesaler → retailer → consumer. An agent never owns the goods; they connect buyers and sellers for a commission, which is common for small producers entering new markets.
Every intermediary needs to earn a living, so each one adds its own markup. A longer channel usually means a higher final price and less control over how the product is displayed and sold. A shorter channel gives the producer more control and keeps more of each sale, but the producer must now do the jobs the intermediaries used to do: storing, shipping, selling and handling returns.
| Channel | Producer's control | Reach | Best fit |
|---|---|---|---|
| Direct | Highest | Limited to customers the producer can reach itself | Custom or handmade products, services, online brands |
| Retailer | Medium | Wide — every store that carries it | Clothing, electronics, furniture |
| Wholesaler | Lower | Very wide — thousands of small stores | Snacks, drinks, household goods |
| Agent | Lowest | New regions or markets the producer does not know | Small producers exporting or entering big chains |
Distribution Intensity
| Intensity | Meaning | Product type | Hypothetical example |
|---|---|---|---|
| Intensive | Sell through as many outlets as possible | Convenience goods bought often with little thought | Gum, bottled water, batteries |
| Selective | Sell through a limited number of carefully chosen outlets | Shopping goods customers compare before buying | Mid-priced running shoes, small appliances |
| Exclusive | Sell through one or very few outlets in an area | Specialty and luxury goods | A luxury watch brand with one authorized dealer per city |
E-Commerce and Logistics
E-commerce — buying and selling online through a brand's own website, an online marketplace, or a shop built into a social media platform — lets even a tiny business sell directly to customers across Canada. Many businesses are now omnichannel, meaning customers can browse online, buy in store, order for curbside or in-store pickup, and return items either way. Selling online shortens the channel, but it moves new jobs onto the seller: packing, shipping, delivery tracking, returns and online customer service.
Logistics (physical distribution) is the work of moving products efficiently: order processing (receiving and confirming orders), warehousing (storing goods until they are needed), inventory management (keeping enough stock without tying up too much cash), and transportation (truck, rail, ship, air or courier). The final step to the customer's door, called last-mile delivery, is often the most expensive part of shipping an online order.