Marketing place and
promotion
MADE BY NIDHISH, AARCHIT, PURAB, NAISA
Place = location / distribution

Convenience

Distribution

Availability

Accessibility

Usability

Where and when necessary

Size and portability
Place
In the marketing mix, the process of moving products from
the producer to the intended user is called place. In other
words, it is how your product is bought and where it is
bought. This movement could be through a combination of
intermediaries such as distributors, wholesalers and
retailers. In addition, a newer method is the internet which
itself is a marketplace now. Distribution of goods takes place by means of
channels, and the intermediaries are the independent groups or organizations
within the channel that make the product available for consumption
Distribution channels
What

is a Distribution Channel?
A distribution channel can be defined as the activities
and processes required to move a product from the
producer to the consumer. Also included in the channel
are the intermediaries that are involved in this
movement in any capacity. These intermediaries are
third party companies that act as wholesalers,
transporters, retailers and provide warehouse facilities.
Types of distribution channels

Direct- the manufacturer directly provides the product to the consumer.

Indirect - a company will use an intermediary to sell a product to the consumer. The company may sell
to a wholesaler who further distributes to retail outlets. This may raise product costs since each
intermediary will get their percentage of the profits. This channel may become necessary for large
producers who sell through hundreds of small retailers.

Dual Distribution- in this type of channel, a company may use a combination of direct and indirect
selling. The product may be sold directly to a consumer, while in other cases it may be sold through
intermediaries.

Reverse Channels -The last, most non tradition channel allows for the consumer to send a product to
the producer. This reverse flow is what distinguishes this method from the others.
Importance of distribution channels
It may seem simplistically possible and smarter for a company to directly distribute
its own products without the help of a channel and intermediaries. This is especially
so because the internet allows sellers and buyers to interact in real time. But in
actual practice it may not make business sense for a company to set up its own
distribution operation. Large scale producers of consumer goods for example,
need to stock items of basic necessity such as soap, toilet paper and toothpaste
in as many small and large stores in as many locations as possible. These locations
may be as close together as two on the same street. They may also be remote
rural convenience stores, rest stops and petrol stations. It would be
counterproductive and costly for the company to attempt to achieve this without
a detailed distribution channel.
All producers must rely on a distribution channel,
Why? for example, a product might be sold directly from the company website
but it will be sent to the consumer using an existing shipping service.
Benefits of distribution channels

Specialists – Since intermediaries are experts at what they do, they can perform the task better and more
cost effectively than a company itself.

Quick Exchange time – Being specialists and using established processes, intermediaries are able to ensure
deliveries faster and on time.

Variety for the Consumers – By selling through retailers, consumers are able to choose between a varieties
of products without having to visit multiple stores belonging to each individual producer.

Small Quantities – Intermediaries allow the cost of transportation to be divided and this in turn allows
consumers to buy small quantities of a product rather than having to make bulk purchases. This is possible
when a wholesaler buys in bulk, stores the product in a warehouse and then provides the product to
retailers located close by at lower transportation costs.

Sales Creation – Since retailers and wholesalers have their own stakes in the product, they may have their
own advertising or promotions efforts that help generate sales.

Payment Options – Retailers may create payment plans and options for customers allowing easier
purchases.

Information – The distribution channel can provide valuable information on the product and its
acceptability, allowing product development as well as an idea of emerging consumer trends and
behaviors.
What is a marketing intermediary

A marketing intermediary is the link in the supply chain that links the
producer or other intermediaries to the end consumer. ... They are also
known as middlemen or distribution intermediaries. The four types
of marketing intermediaries are agents, distributors, wholesalers and
retailers
Types of INTERMEDIARIES
WHY THERE IS A NEED OF MARKETING
INTERMEDIARIES
Marketing intermediaries fulfill an information role and a logistics
role. They create value by adding efficiency to marketplaces for
goods or services which are inherently “many-to-many” in nature.
That is, most markets have many suppliers, and many consumers. It
may be inefficient for every supplier to establish contact with and
interact directly with every consumer. Likewise, it may be
cumbersome for every consumer to contact every supplier directly
in making and implementing a buying decision.
.
Advantages of having marketing
intermediaries

Increased Reach-Using wholesalers, distributors, retailers, sales agents and
rep companies helps you get into markets you can’t get into by yourself

Better Marketing-When you work with retailers, they will pay for the
advertising, promotions and public relations efforts that get customers into
their stores. Wholesalers, sales agents, distributors and rep companies will
use their resources to promote you to their customers and clients. Many
manufacturers offer co-op programs, whereby you reimburse retailers for a
percentage of any ads they run that feature your company name,
product or logo, reducing your costs to get your product in print, on the
air, or on the Internet.