PLACE

The Marketing Mix Product Price Place Promotion

Place How did I get here?

Place The toughest of all the P’s to remember – Because it is the least “flashy” How a business chooses to get their product or service to the customer – What stores to locate in – Should you sell online? – Where to locate your store – Use of a retailer vs selling directly to the customer

Channels of Distribution

Goods and services need to be either in a place where consumers can find them or delivered directly to the consumers Distribution is the means of accomplishing this goal Logistics – arranging for the product to move along the path to ensure it gets to the consumer efficiently, safely, cheaply and quickly – People are paid a lot of money to manage logistic companies

Channels of Distribution Two major components of logistics: – Selecting, developing and managing distribution channels – Physically distributing the products through channels of distribution Many companies are as successful as they are because they have so many “ins” at different retailers – They already have the distribution network to get their product out there and in the hands of the customer

Channels of Distribution

Dragon’s Den often talks of channels of distribution Entrepreneurs simply don’t have a way to get their new products or services to the consumer and want to use the channels that the dragon’s have already set up

Channels of Distribution The Distribution channel is always the choice of the business Intensive Distribution – The company wants product sold everywhere – If you turn around – you can find the product – Often done with lower prices – low involvement products – Ex: Coke has multiple channels, multiple products, and attempts to be always available

Channels of Distribution Selective Distribution – The company attempts to control where the product is sold, pricing, etc. – The product may lose a little something if you can find it everywhere May be seen as “mainstream” or “cheap” – attempts to position product in a certain way through their distribution – Products or Services will ensure that the image of the retailer fits their product Example: Don’t sell ugg boots at Walmart

Channels of Distribution Exclusive Distribution – Deals are made with one or more retailers so that they are the only ones who can sell a product. – Can gives a certain prestige to product. – The store will often make a big event and spectacle carrying the product Special displays, advertisements, etc – Example – iTunes music

Channels of Distribution Integrated Distribution – Company owns manufacturing, distribution and retail businesses – Companies control everything to do with the product – Examples Ikea La-Z-boy Car Dealersihps – Why don’t all businesses do this?

Distribution Channels Activity Identify 3 different companies and products that use each type of channel for distribution. Companies and products can not be from examples that were already given in class. Intensive Distribution Selective Distribution Exclusive Distribution Integrated Distribution