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3.3 The marketing mix – Elements of the marketing mix (1 questions)
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Distribution links the product to the end‑user, influencing availability, convenience, and overall customer satisfaction. Traditional channels often involve manufacturers, wholesalers, and retailers, each adding value through storage, bulk breaking, and face‑to‑face service.
The growth of e‑commerce has reshaped these structures in several ways:
- Direct‑to‑consumer (D2C) models bypass intermediaries, allowing firms to control pricing, branding, and customer data.
- Online marketplaces (e.g., Amazon) act as new intermediaries, offering extensive reach but also increasing competition for visibility.
- Logistics innovations such as same‑day delivery and click‑and‑collect blend physical and digital channels, enhancing convenience.
- Reduced reliance on physical retail space lowers overheads but requires investment in digital infrastructure and fulfilment capabilities.
Overall, e‑commerce expands market reach and customer interaction possibilities, but firms must balance the benefits of direct control with the challenges of logistics, technology investment, and intensified competition.