Distribution decisions in the marketing plan entail the movement of your product from the producer to the final consumer.

An understanding of how and where your customer prefers to purchase products is critical to the development of the marketing plan. As you apply the information in this chapter to your plan, focus on the following issues:

1. Considering your product’s attributes and your target market’s (or markets’) buying behavior, will your product likely be sold to the ultimate customer or to another member of the marketing channel?

2. If your product will be sold to the ultimate customer,

what type of retailing establishment is most suitable to your product? Consider the product’s characteristics and your target market’s buying behavior. Refer to Table 14.1 for types of general merchandise retailers.

3. Discuss how the characteristics of the retail establishment, such as location and store image, have an impact on the consumer’s perception of your product.

4. Are direct-marketing or direct-selling methods appropriate for your product and target market?

5. If your product will be sold to another member in the marketing channel, discuss whether a merchant wholesaler, agent, or broker is most suitable as your channel customer.

Table 14.1

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Type of Retailer Department store Discount store Convenience store Supermarket Superstore Hypermarket Warehouse club Description Examples Large organization offering a wide product mix and organized Macy's, Kohl's, JCPenney into separate departments Walmart, Target, Dollar General Self-service, general-merchandise store offering brand-name and private-brand products at low prices Small, self-service store offering narrow product assortment in convenient locations Self-service store offering complete line of food products and some non-food products Giant outlet offering all food and non-food products found in supermarkets, as well as most routinely purchased products Combination supermarket and discount store, larger than a superstore Large-scale, members-only establishments combining cash- and-carry wholesaling with discount retailing Warehouse showroom Facility in a large, low-cost building with large on-premises inventories and minimal service 7-Eleven, Allsup's Kroger, Safeway, Publix, HEB Walmart Supercenters, SuperTarget Carrefour, Lulu Sam's Club, Costco IKEA