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The Marketing Mix Place
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Place Location Placement Distribution channel
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Location, location, location
Convenience Accessibility Cost of access Reputation Closeness to competitors Closeness to target market
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Placement in the point of sale
Loss leaders scattered around store Complementary products located next to each other Sweets by the tills Importance in website & catalogue selling
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How to persuade retailers to stock your product
Promotional campaigns Provide extra facilities or displays Offer high profit margins Pay generous commission to sales staff Sole brand deals Investigate alternative outlets Coffee shops in bookshops
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Distribution channels
Traditional Producer wholesaler retailer consumer Modern Producer retailer consumer Direct Producer consumer
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Role of wholesalers Buy in bulk from producer & sell in smaller quantities to the retailer Help producers by purchasing their stock of finished goods as soon as it is produced & store it until consumers want it Save storage costs Help cash flow Reduces producer’s risk Retailers benefit from lower delivery costs – wholesaler stocks products from different manufacturers & will deliver the order
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Role of retailers Convenience Advice
Financial assistance (credit terms) After-sales support
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Factors influencing distribution method
Size of the retailer (large retailers will want to bypass wholesalers) Type of product Technology Geography of the market Complexity of the product Degree of control desired by the producer
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