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Marketing Mix-Place 5/27/15
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Place Getting the product to the customer in right place at the right time. Supply Chain= all actions needed to turn raw materials into finished good or service that is given to the customer.
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Place Hines
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Place Hines Players Distribution Channels Intermediaries
Wholesalers Merchant Agents and Brokers Retailers Distribution Channels Direct-Purchase direct from the source (farmer’s market) Indirect-Channel intermediaries (wholesalers, agents, retailers who add value by helping to move the product) Hines
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Place Each layer of the supply chain should add value and cost
Each layer creates utility and efficiency (Solomon)
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Place Physical Distribution (logistics) Modes of Transportation
Air-Hi dependability, Hi cost, Very Fast Truck/Motor-High dependability, Hi cost Rail- Average dependability, Average cost Water- Low dependability, Slow speed Pipeline-Hi dependability, Slow speed Internet-Hi dependability, Low cost
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Place Other Logistics Inventory Control= Just-in-time (JIT)
Facilitating Functions= Credit, Warehousing, Materials Handling, Order Processing
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Place Levels of Intensity Intensive- Maximize market coverage.
Convenience items-gum, soda Selective- Fewer outlets- Shopping products like appliances Exclusive-Limits distribution to a single Outlet ( like one Lexus dealer or one Rolex jeweler)
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