Marketing Mix Place

Learning Objectives To understand the channels of distribution business might use when they grow To understand how distribution channels are selected

Place Two things: How the products and services get from producer to consumer Where the product/service can be accessed by the consumer (e.g. A shop) The more places to buy the product and the easier it is made to buy it, the better for the business (and the consumer?)

Key Terms Place - where the product is sold and how it gets to the customer Channel of Distribution- the stages a product goes through before reaching the final customer Producer – A firm that supplies goods or services Retailer - Shops that sell goods/services to the final consumer Consumer – Person who buys finished product

Key Terms Wholesaler - Buys in bulk from producer and sells in smaller quantities to the retailer Wholesaler is the ‘Middleman’ Buys from producers and sells smaller quantities to retailers Provides storage facilities Doesn’t really deal with final customer We need to know four potential channels of distribution...

Channels of Distribution

Methods of distribution Department store Chain Store Discount store Superstore Supermarkets Direct sales Mail order Internet/e-commerce

Methods of distribution: Telesales - Selling to the customer over the telephone Selling over the telephone E.g. Double glazing Insurance Kitchen companies Solar Panels Useful if the business cannot afford a large sales team or expensive retail space

Mail order Mail order – direct marketing through mail shots leading to sales e.g. catalogues Letters, leaflets, catalogues etc. sent through the mail Direct Mail (junk mail) House and Car insurance Clothing catalogues You can target specific customers e.g. Sending a mail shot containing a toy catalogue to families with young children

Internet Selling (E-Commerce) E-Commerce – Selling items online and delivering them to the consumer Growing rapidly https://www.slideshare.net/wearesocialsg/digital-in-2017- global-overview What are the opportunities of e-commerce to business and consumers? What are the threats of e-commerce to business and consumers?

E-commerce - Business Global coverage Access to consumers Opportunities Threats Global coverage Access to consumers Low-cost promotions Shops might not be needed B2B easier Setting up/updating website costs No direct consumer contact Competition from other websites Transport costs

E-commerce - Consumers Opportunities Threats No need to leave the home Compare prices easily on products and services Easy pay methods Access of products from overseas Can buy some products really cheap now because of e-commerce competition e.g. books, music and insurance Consumers need access to the internet Poor internet or systems can frustrate customers Cannot see, touch or try the products Hard to return products No face to face contact Concern about security e.g. identity theft and fraud on credit cards