PLACE  It is the final component of the 4 P´s of the marketing mix.  Place refers to the distribution of a product, for example: how to get to the consumer  A common definition of distribution is getting the right products to the right customers at the right price in the right place and at the right time

TRADITIONAL CHANNELS OF DISTRIBUTION  Intermediation: Intermediaries are agents or firms that act as a middle person in the chain of distribution between the manufactures and consumers of a product  The traditional chain of distribution consists of manufacturers, wholesalers and retailers  A long chain of distribution will tend to raise prices for the consumer since each intermediary adds a profit margin to their price

A zero level channel  It does not have intermediaries  The producer sells directly to the consumer  Examples: e-commerce, telesales and mail order, and the service industry consumer

A one level channel  It has one intermediary, such as retailers or distributors being used to sell products to consumers producer distributors consumer agents producer consumer agents producer

A two-level channel  It has 2 intermediaries, such as the use of wholesalers and retailers to get products to consumers producer wholesalers retailers consumers

WHOLESALERS  Wholesalers are businesses that purchase large quantities of products from manufacturer and then separate or break the bulk purchases into smaller units for resale to retailers

DISTRIBUTORS AND AGENTS  Distributors are independent and specialist businesses that trade in the products of only a few manufacturers. For example: car distributors will typically sell the products of one manufacturer, such as Honda or ford to consumer  Agents or brokers are negotiators who act on behalf of buyer and vendors (sellers) of a product. They are not usually employed by the producer but are used as an intermediary to help sell the vendor´s products

RETAILERS  Retailers are the sellers of products to the final consumer. They are often referred to as shops in everyday language  Hypermarkets  Supermarkets  Department stores  Chain stoires: Mc Donalds  Independent retailers: local vendors

DIRECT MARKETING AS A CHANNEL OF DISTRIBUTION  Direct marketing refers to the direct selling of products to the consumer, for example: marketing without the use of any intermediaries. Telesales, ecommerce, vending machines and direct mail

Telesales  Telemarketing refers to the use of telephone systems to sell products directly to potencial customers

Vending machines  They are specialist machines that stock products such as cigarrettes, drinks and snacks

CHOOSING AN APPROPRIATE DISTRIBUTION STRATEGY  Cost and benefits  Product  Market  Time  Legal constraints

Supply chain management  It is also known as logistics, is the art of managing and controlling the sequence of activities from the production of a good or service to it being delivered to the end customer