1. Marketing Mix Place

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

3. 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?)

4. 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

5. 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...

6. Channels of Distribution

7. Methods of distribution Department store Chain StoreDiscount storeSuperstoreSupermarketsDirect salesMail order Internet/e- commerce

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

9. 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

10. Internet Selling (E-Commerce) E-Commerce – Selling items online and delivering them to the consumer ▫Growing rapidly https://hostingfacts.com/internet-facts-stats-2016 How many internet users? How much money generated in sales by the internet? How many people have bought goods online?