C HAPTER 22: T HE M ARKETING M IX : P LACE 7/3/2015 Business Study 1

W HAT WILL WE GO THROUGH  The role of the place in the market.  The channel of distributions.  The function of the wholesaler.  Methods of transporting goods.  The Marketing plan. 7/3/ Business Study

R OLE OF PLACE IN THE MARKETING MIX Place Products get from producer to consumer places they can be access by the consumer The more places to buy the product from the easier it is to buy it. The more the places the more the profit for the business. 7/3/ Business Study

C HANNEL OF DISTRIBUTIONS Business have to decide Where to sell the product How to get the products to consumers Through the 4 Channel of distribution 7/3/ Business Study

C HANNEL OF DISTRIBUTION 1 Involves Manufacturers Consumers The manufacturers selling directly to the consumers (Food product like Bread) 7/3/ Business Study Producer Consumer Like this

C HANNEL OF DISTRIBUTION 2 Involves Manufacturers Retailer Consumers The manufacturers sells the product the retailer then the retailer sell it to the consumers (Furniture or Jewelers) 7/3/ Business Study Producer Consumer Retailer Like this

C HANNEL OF DISTRIBUTION 3 Involves Manufacturers Wholesaler Retailer Consumers The manufacturers sells the product the wholesaler then the product goes to the retailer then the retailer sell it to the consumers (Food Products) 7/3/ Business Study Producer Consumer Wholesaler Retailer Like this

C HANNEL OF DISTRIBUTION 4 7/3/ Business Study Producer Retailer Agent Wholesaler Consumer Involves Manufacturers Agent Wholesaler Retailer Consumers The manufacturers sells the product to the agent then the agent sell it to the wholesaler then the product goes to the retailer then the retailer sell it to the consumers Like this

M ETHODS OF DISTRIBUTION 7/3/ Business Study Method of distributionDescription Department stores Large store, centre of town that sell wide variety in products Chain stores Two or more stores which have the same brand Discount stores Retail stores that has discount prices on variety of products Superstores New very large out-of-town stores Supermarkets Retail grocery stores with dairy produce, fresh meat and packaged food Direct sales Products are sold directly from the manufacturer to the consumer Mail order Look through catalogue or magazine and order via post. Internet/e-commerce Look through internet or business website and order also possible via phone and mail

E-commerce 7/3/ Business Study This is selling products online. Such as E-bay and yahoo.

W HAT DOES A WHOLESALER DO ? A wholesaler(distributor) Important stop in the deliver chain Gets products from manufacturers to consumers. He takes charge of goods from a manufacturer Usually in very large amounts Sells them to retail at a marked up price Wholesaler sometimes establishes itself directly as a put on the market offering discounts 7/3/ Business Study

D ISADVANTAGES OF HAVING A WHOLESALER. The manufacturer has less control over the quality and final delivery of the product. It is potentially less profitable for the manufacturer, because the wholesaler takes his cut. 7/3/ Business Study

A DVANTAGES OF HAVING A WHOLESALER. They break burden - this leads to efficient delivery. Storage space is reduces Cheaper in ways of contact It improves cash flow of the manufacturer. Wholesalers extend credit to retailers. 7/3/ Business Study

7/3/ Business Study M2 M3 M4 M5 M Manufacturer Retailer Manufacturer M2 M3 M4 M5 M W1 Retailer

H OW TO SELECT THE RIGHT CHANNEL OF DISTRIBUTION ? You have to look at the following: What type of product is it? Is the product very technical? How often is the product bought? How expensive is the product? How fresh is the product? Where are the customers located? Where do the competitors sell their product? 7/3/ Business Study

M ETHODS OF TRANSPORTING ? Businesses need to deliver their product to the retailers which may live in different countries. There are several ways of delivery for example: Road delivery Railway delivery Canal & River delivery Sea Freight Air Freight Pipe Lines 7/3/ Business Study

R OAD DELIVERY. This is the most versatile type of transport can be delivered at any time relatively cheap and fast Own lorry can put the company name on the side of the lorry (free advertising) Problems 1. pay all the costs of running lorries (ex. Fuel, wages) How to solve problems 1. hire a specialist transport business to transport the products 7/3/ Business Study

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R AILWAY DELIVERY. This is suitable for the long distance transport cheaper than road transport over long distances faster than road over a direct route 7/3/ Business Study

C ANAL & RIVER DELIVERY. Canal and river a slow way to transport products but it is cheap (cheap=for large, heavy products.) (expensive= to transport by road or rail.) 7/3/ Business Study

S EA FREIGHT DELIVERY. the use that are mainly for international trade and carries a lot of different types of products around the world (carried in container.) 1. product --> 2. Package --> 3. Load onto the ship (trains and lorries) 7/3/ Business Study

A IR FREIGHT DELIVERY. the use of small, expensive goods product that are fragile, get worse quickly. Expensive objects are transported by planes. quick way of transporting. 7/3/ Business Study

P IPELINE DELIVERY. This is a transportation which can only occur in fluids (liquids or gases) over a long distance Example: pumping oil to the oil refinery or docks Cheaper than pumping crude oil into tractors, then transport by road. Pipe line can take the most direct route. 7/3/ Business Study

S UMMARY OF METHODS OF TRANSPORTING 7/3/ Business Study SlowFast Speed Of Delivery ExpensiveCheap Cost Of Transport River/Canal Sea FreightRoad/ RailAir Freight

M ARKETING PLAN IF the 4P’s come together The sales of the product will improve so will profits. Marketing mix will be adapted to suit the overall image and target market for this product. Marketing department would bring everyone's ideas together would be to produce a marketing plan. 7/3/ Business Study

Q UIZ TIME ( LETS SEE WHAT YOU KNOW !) Which is the fastest way of transport? 7/3/ Business Study Air freight Sea freight Canal or River Road or Rail

7/3/ Business Study Which Is better having a wholesaler or not having a wholesaler Having a Wholesaler Not Having a Wholesaler

7/3/ Business Study Which Channel Of Distribution is the best for Furniture. Channel OF Distribution 1 Channel OF Distribution 2 Channel OF Distribution 3 Channel OF Distribution 4

N OW Y OU S HOULD K NOW …… The role of the place in the market. The channel of distributions. The function of the wholesaler. Methods of transporting goods. The Marketing plan. 7/3/ Business Study