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 Store
Discount store
Superstore
Supermarkets
Direct sales
Mail order
Internet/e-commerce

8. Methods of distribution:
Telesales - Selling to the customer over the telephone
Selling over the telephone
E.g. Double glazing
Insurance
Kitchen companies
Solar Panels
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
global-overview
What are the opportunities of e-commerce to business and consumers?
What are the threats of e-commerce to business and consumers?

11. E-commerce - Business Global coverage Access to consumers
Opportunities
Threats
Global coverage
Access to consumers
Low-cost promotions
Shops might not be needed
B2B easier
Setting up/updating website costs
No direct consumer contact
Competition from other websites
Transport costs

12. E-commerce - Consumers
Opportunities
Threats
No need to leave the home
Compare prices easily on products and services
Easy pay methods
Access of products from overseas
Can buy some products really cheap now because of e-commerce competition e.g. books, music and insurance
Consumers need access to the internet
Poor internet or systems can frustrate customers
Cannot see, touch or try the products
Hard to return products
No face to face contact
Concern about security e.g. identity theft and fraud on credit cards