MARKETING(PLACE)
PLACE
 It is the final component of the 4 P´s of the
marketing mix.
 Place refers to the distribution of a product,
for example: how to get to the consumer
 A common definition of distribution is
getting the right products to the right
customers at the right price in the right place
and at the right time
TRADITIONAL CHANNELS OF
DISTRIBUTION
 Intermediation: Intermediaries are agents or
firms that act as a middle person in the chain
of distribution between the manufactures
and consumers of a product
 The traditional chain of distribution consists
of manufacturers, wholesalers and retailers
 A long chain of distribution will tend to raise
prices for the consumer since each
intermediary adds a profit margin to their
price
A zero level channel
 It does not have intermediaries
 The producer sells directly to the consumer
 Examples: e-commerce, telesales and mail
order, and the service industry
consumer
A one level channel
 It has one intermediary, such as retailers or
distributors being used to sell products to
consumers
producer
distributors
consumer
producer
agents
consumer
producer
agents
consumer
A two-level channel
 It has 2 intermediaries, such as the use of
wholesalers and retailers to get products to
consumers
producer
wholesalers
retailers
consumers
WHOLESALERS
 Wholesalers are businesses that purchase
large quantities of products from
manufacturer and then separate or break the
bulk purchases into smaller units for resale to
retailers
DISTRIBUTORS AND AGENTS
 Distributors are independent and specialist
businesses that trade in the products of only a
few manufacturers . For example: car
distributors will typically sell the products of one
manufacturer, such as Honda or ford to
consumer
 Agents or brokers are negotiators who act on
behalf of buyer and vendors (sellers) of a
product. They are not usually employed by the
producer but are used as an intermediary to help
sell the vendor´s products
RETAILERS
 Retailers are the sellers of products to the
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final consumer. They are often referred to as
shops in everyday language
Hypermarkets
Supermarkets
Department stores
Chain stoires: Mc Donalds
Independent retailers: local vendors
DIRECT MARKETING AS A
CHANNEL OF DISTRIBUTION
 Direct marketing refers to the direct selling of
products to the consumer , for example:
marketing without the use of any
intermediaries. Telesales, ecommerce,
vending machines and direct mail
Telesales
 Telemarketing refers to the use of telephone
systems to sell products directly to potencial
customers
Vending machines
 They are specialist machines that stock
products such as cigarrettes, drinks and
snacks
CHOOSING AN APPROPRIATE
DISTRIBUTION STRATEGY
 Cost and benefits
 Product
 Market
 Time
 Legal constraints
Supply chain management
 It is also known as logistics, is the art of
managing and controlling the sequence of
activities from the production of a good or
service to it being delivered to the end
customer