We focused on 2 key dimensions of place strategy:: commercialization (distribution), and exposure (where the customers takes possession of the product or service.)

But which comes first:

• Finding a way to move the product through channels
  to put it where the customer wants it, or...

• Finding out where the customer wants it, and
  then finding channel members to move it from where it's produced to where the customers expects it to be?

It depends on effectiveness and efficiency.

Another marketing axiom comes to mind here: All change costs money. Why not first investigate the efficacy and efficiency (profitability) of existing channels?

We work with channel members because they can deliver services and provide access to other or more channel members than we can.

Wholesalers already have distribution with retailers in a number of markets..

Retailers already serve the needs of customers in local markets.

If we could provide all the functions required to get the product or service to customers more effectively and efficiently, we wouldn't need middlemen, we'd do it ourselves.

Creating and maintaining a channel is about weighing the costs and risks involved.

Transportation, storage, and financing are marketing activities. And there are experts out there with specialized services to help marketers be more effective and efficient.

Think of your credit card company as a wholesaler, giving you access to a credit line of funds you either don't currently have, or providing you a 20-30-day grace period for which to pay for what you charge on its card.

So how does a credit card company make money on those who pay their statements on time? It charges the retailer a transaction fee.

All channel members perform transactional functions,
even the real estate broker that engages in risk,
should either the buyer or seller elect back out of the sale.

Harry and David
(harryanddavid.com)
sell fruit gift baskets. Growers deliver pears, oranges, and apples to the company's warehouse in Oregon, where teams sort items for each basket—resulting in a finished assortment. These are logistical functions.

Inspectors grade beef based on fat content: Prime goes to top restaurants such as Ruth's Chris Steak House or butcher shops at Central Market. Choice goes to finer restaurants,
and Select to our local supermarkets. Even nuts, eggs, and butter are graded. These are facilitating functions.

Exclusive exposure means the customer can only find the product or service at one location. All local marketing efforts are in support of what's sold there. If you wanted something from Gallery Furniture, you once had to go to one store located on I-45 between Tidwell and Parker—exclusive exposure.*

Selective exposure means availability of the product or service in more than one location in a local market, and at least some sort of retail sales support. Gallery Furniture now has a second store in the Galleria area at 2411 Post Oaks. It's now selective for furniture items available at both locations.*

Intensive exposure generally includes brand name products available at supermarkets, drug, and convenience stores—staples (eggs, bread, milk) and others common items such as soap, soda, and snacks. Retailers simply provide shelf space. It's incumbent on the marketer to promote the product, or provide local advertising support to the retailer to drive consumers into the stores.

* This applies only to furniture items that cannot be found
  in other furniture stores. For example, Temper-Pedic
  mattresses can be purchased at most fine bedding
  stores. For this item, Gallery Furniture would provide
  selective exposure.