marketing

advertisement

THE PLACE

MARKETING MIX

How the goods get from the producer to the customer.

TYPES OF DISTRIBUTION

Direct distribution – from a producer directly to customers

Indirect distribution - distributing by the use of an intermediary (wholesalers, retailers)

PRODUCER CUSTOMER

Direct distribution

PRODUCER COSTUMER

WHOLESALER RETAILER

Indirect distribution

DIFFERENCE BETWEEN WHOLESALE AND RETAIL

Retail: A retail store sells individual items to the public (consumers).

Wholesale: Wholesaler sells pallets of items to the retailer (other companies).

FUNCTION OF DISTRIBUTION CHANNELS

Transportation - transports products from the manufacturer to retailers and customers.

Information - collects and analyzes informations about current and potential customers, competitors, suppliers.

Contact – finds and establishes contact with prospective buyers.

FUNCTION OF DISTRIBUTION CHANNELS

Matching - involves tailoring the product to fit customer needs.

Financing - a distribution channel partner finances his costs, including buying and storing .

Risk - a distribution channel shares some of the business risks.

TYPES OF RETAILERS

Department store – a collection of smaller retail stores, offers a wide range of products, is managed by one company.

Example: Former department store Kotva or

Prior

Shopping centers - a large sales area, offering a full range of goods (food, fashion, electronic, household good) and services

(hairdresser, cinema, fast food), prices of products can be various (expensive, cheap), each part is owned by different owners

Example: OC Futurum Kolín, OC Chodov

TYPES OF RETAILERS

Speciality retailers – specialising in specific products, this type of retailer is able to offer the customer expert knowledge and a high level of service.

Example: florist, butcher, fashion, stationery

Supermarket – focused on large range of food and beverage products. Sometimes you can buy there electrical products, fashion and household goods.

Example: Kaufland, Tesco, Billa

TYPES OF RETAILERS

Grocery stores – a relatively small shops offering a narrow range of FMCG goods at higher prices

Example: small shops in villages, shops with extended shopping hours („Večerka“)

Discount retailer – offers a variety of discounted products, they offer low prices on less fashionable branded products or returned goods at discounted prices.

Example: Outlet shops

Resources:

• http://www.learnmarketing.net/place.htm

• http://www.the-reseller-network.com/content/88/types-of-retailers/

• http://www.ehow.com/info_7751319_major-functions-distributionchannel.html

Download