Place is more commonly known and referred to distribution channels. The distribution channels are used to display and sell the actual product or service to the consumer. Distribution channels play a very important role in the marketing mix because it helps the marketer reach the target market efficiently. Think of distribution chancels as a pipeline that in which a vendors product or service flow directly to the consumer. There are several distribution chancels that require different intermediaries such as:

Manufacturer --> Customer:

This is by far the most economical type of channel distribution. It requires no middle man and allows the manufacture to sell directly to the customer. This type of direct selling cuts many distribution costs because of the ability to sell directly to the customer.

Manufacturer --> Retailer --> Customer:

This type of channel distribution has one middle man, which is the retailer. The manufacturer distributes their product to the retailer who then sells it to the consumer. This is becoming a popular form of distribution currently because of the larger retailer stores. The retailer will purchase a large quantity of the product, like televisions or DVD players, and use their own marketing to distribute the product to the consumer.

Manufacturer --> Wholesaler --> Retailer --> Customer:

This type of distribution channel requires two middlemen, the wholesaler and retailer. This type of distribution channel is more common in the larger big box type retailers that sell to consumers in a larger more scattered market. It is especially useful for manufactures with a smaller product line that need the promotional distribution from wholesalers.