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Transcript of 4.6 Place
Place is a distribution strategy that determines how a customer will receive the product.
2. Traditional Channels of Distribution
1. What is Place?
Distribution is one of the four traditional components of any marketing mix.
Think of PLACE as:
"Getting the right product, to the right customers, at the right price in the right place and at the right time."
6. Direct Marketing as a
Channel of Distribution
refers to the direct selling
of products to the consumer, i.e. marketing
without the use of any intermediaries.
4. Distributors and
independent and specialist businesses that trade in the products of only a few manufacturers.
Agents (or brokers)
negotiators who act on behalf of buyers and vendors (sellers) of a product.
2.1. Zero-level Channel
2.3. Two-Level Channel
5.1. Independent Retailers
5.2. Multiple Retailers
5.5. Department Stores
6.3. Vending Machines
6.4. Direct Mail
chain of distribution
refers to the means used to get a product to the consumer.
Think of Coca-Cola.
The traditional chain of distribution consists of manufacturers, wholesalers and retailers.
Skips any intermediaries
It has one intermediary
It has two intermediaries
Businesses that purchase large quantities of products from a manufacturer and then separate or 'break' the bulk-purchases into smaller units for resale to retailers.
are the sellers of products to the final costumer. They are often referred to as "shops" in everyday language.
The small local vendors (sellers), often operating as a sole proprietorship.
Also known as
. They are retailers that have several or many outlets, such as McDonald's, The Body Shop and Mothercare.
Are retailers that mainly sell foodstuffs. They tend to buy their products directly from manufacturers, thereby missing out the wholesalers.
are huge outlets that stock not just foodstuffs but other products. Tend to be located in out of town areas due to their enormous size.
Are retail outlets that sell a large range of products, such as furniture, jewelery, kitchen equipment, clothing, toys and cosmetics.
No intermediaries, not sharing so much of their profits.
Direct control over their marketing.
Development of the internet, growing popularity, use of online payment.
Can reach potential customers who do not have easy access to retail outlets.
Cheaper than ATL techniques.
Also known as
, refers to the use of telephone systems to sell products directly to potential customers.
is the term used to describe trading via the internet. It's an effective way to reduce the costs and risks of international marketing.
Are specialist machines that stock products such as cigarettes, drinks and snacks. They can be placed anywhere.
Involves a business sending promotional material via the mail system to entice customers to buy a firm's products.
Cost and benefits
7. Choosing an Appropriate Distribution Strategy