1. Unit 3 - The Marketing Mix
What Is Place?

2. What Is Place Place is one of the Four Ps of the marketing mix.
Place is about making sure the right products get to:
the right place
at the right time
in the right quantities

3. Place Decisions Place decisions include location hours of operation
channels of distribution
transportation

4. Channels of Distribution
Channel of distribution
the route a good takes from its original source to its final customer
The most common channel of distribution for consumer goods includes
a producer
a wholesaler
a retailer
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5. (Continued)

6. Supply Chain Another term for channel of distribution
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7. Wholesalers and Retailers
Intermediaries
the businesses between the original source of the product and the customer
Two types of intermediaries
wholesalers
retailers
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8. Wholesalers and Retailers
Business to Businesss
Buys from producers
Sells to another business
also called distributor
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9. Wholesalers and Retailers
Business to consumers
buys from producers or wholesalers
sells to consumers
includes stores, restaurants, theatres, etc.
also includes nonstore retailers
Examples: e-tailers, TV shopping channels, mail-order catalogues

10. Agents and Brokers Agent another type of intermediary
also called a broker
connect buyers and sellers
never own or physically handle the product
may be hired by the seller or the buyer
know the market extremely well
often used in situations where it is hard for buyers and sellers to find each other

11. Types of Distribution Direct distribution
channel of distribution with no intermediaries
Indirect distribution
channel of distribution with more than one intermediary

12. Role of Intermediaries
Why do producers use intermediaries?
Because intermediaries are experts at distribution.
Most producers are experts at making a product, not at distributing it.
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13. Activities of Physical Distribution
the movement of goods in the distribution channel
Logistics of physical distribution
handling the details involved in physically moving goods

14. Components of Physical Distribution
Four components of physical distribution
products to be shipped
channel members
transportation companies
warehouses

15. Transportation Companies
physically moving goods from buyer to seller - also called shipping
Carrier
company that provides the service of transportation for channel members
is not part of the distribution channel
does not own the goods shipped
Example: Purolator

16. Warehouses
Products must be stored at various points along the channel of distribution.
Warehouse
building where large quantities of products are stored until needed for shipping – inventory
Just-in-time (JIT) - a distribution strategy that allows for materials to be delivered the moment they are needed

17. Modes of Transportation
Five major modes of transportation
truck
ship
train
plane
pipeline
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18. The Distribution Process
The distribution process begins when a buyer contacts a seller.
The buyer and seller negotiate the terms of sale - the conditions governing a sale, including discounts, transportation arrangements, date of delivery, etc.
Then a purchase order is written – a sales contract between the buyer & seller