1. Channels of Distribution

2. iPod DISTRIBUTION Worldwide…. On-line AppleStore Retailers ShopsApple Shop Places the iPod sells? Retailers On Line

3. Place in the marketing mix Place= ‘The channels of distribution the company chooses to sell to its customers, so the products end up with the consumer. For a product to sell it must be in the right place at the right time’

4. Channels of distribution Channels of distribution = Producer Consumer Retailer Flow of Stock Agent Wholesaler Retailer Wholesaler Retailer Agent Retailer Wholesaler Agent Telephone / Internet /e-mail / Fax ‘The path taken to get products from the manufacturer or service provider to the customer and on to the consumer’

5. Channels of distribution Direct from the Producer to the Consumer e.g. Holidays can be sold direct to the consumer via the internet; look at the sweet company!

6. E-Commerce Producer keeps more profit No credit control Simple business model E-Commerce..Advantages & Disadvantages Advantages Disadvantages Improved cashflow Maybe reliant on parcel delivery companies Reliant on banks to secure payment Need to be able to meet peaks of demand..XMas Need skills to maintain web site Have to let people know you are there High stocks held Have to manage returned products

7. Channels of distribution Producer via Retailer to the Consumer e.g. large supermarkets buy in huge quantities from the producer to stock their outlets for sale to the consumer.

8. Channels of distribution Producer via Wholesaler to the Consumer e.g The wholesaler buys in large quantities, breaks these down into smaller quantities (e.g. Makro buys 200 packs of 48 Mars bars then offers them in the store in single packs of 48.)

9. Channels of distribution Producer via Wholesaler and Retailer to the Consumer e.g above but the retailer breaks the goods down further and offers single items to the consumer.

10. Channels of distribution - Agents Producer via Agent to the Consumer e.g Agents are like wholesalers as they are "middle men". However, they take a commission on the goods when they are sold rather than owning them.

11. Channels of distribution - Agents Producer via Agent to the Consumer e.g Agents are also used when foreign goods are being sold. The agent knows the market whereas the foreign producer may not. (e.g. Italian tiles sold in the UK, Porsche cars sold in Hong Kong).