Unit 3 - The Marketing Mix What Is Place?

What Is Place Place is one of the Four Ps of the marketing mix. Place is about making sure the right products get to: the right place at the right time in the right quantities

Place Decisions Place decisions include location hours of operation channels of distribution transportation

Channels of Distribution Channel of distribution the route a good takes from its original source to its final customer The most common channel of distribution for consumer goods includes a producer a wholesaler a retailer (Continued)

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Supply Chain Another term for channel of distribution (Continued)

Wholesalers and Retailers Intermediaries the businesses between the original source of the product and the customer Two types of intermediaries wholesalers retailers (Continued)

Wholesalers and Retailers Business to Businesss Buys from producers Sells to another business also called distributor (Continued)

Wholesalers and Retailers Business to consumers buys from producers or wholesalers sells to consumers includes stores, restaurants, theatres, etc. also includes nonstore retailers Examples: e-tailers, TV shopping channels, mail-order catalogues

Agents and Brokers Agent another type of intermediary also called a broker connect buyers and sellers never own or physically handle the product may be hired by the seller or the buyer know the market extremely well often used in situations where it is hard for buyers and sellers to find each other

Types of Distribution Direct distribution channel of distribution with no intermediaries Indirect distribution channel of distribution with more than one intermediary

Role of Intermediaries Why do producers use intermediaries? Because intermediaries are experts at distribution. Most producers are experts at making a product, not at distributing it. (Continued)

Activities of Physical Distribution the movement of goods in the distribution channel Logistics of physical distribution handling the details involved in physically moving goods

Components of Physical Distribution Four components of physical distribution products to be shipped channel members transportation companies warehouses

Transportation Companies physically moving goods from buyer to seller - also called shipping Carrier company that provides the service of transportation for channel members is not part of the distribution channel does not own the goods shipped Example: Purolator

Warehouses Products must be stored at various points along the channel of distribution. Warehouse building where large quantities of products are stored until needed for shipping – inventory Just-in-time (JIT) - a distribution strategy that allows for materials to be delivered the moment they are needed

Modes of Transportation Five major modes of transportation truck ship train plane pipeline (Continued)

The Distribution Process The distribution process begins when a buyer contacts a seller. The buyer and seller negotiate the terms of sale - the conditions governing a sale, including discounts, transportation arrangements, date of delivery, etc. Then a purchase order is written – a sales contract between the buyer & seller