1. PLACE IN THE MARKETING MIX WEDNESDAY 23 RD OCTOBER Learning objective: To be able to explain the role that place has within the marketing mix Key terms Chain/channel of distribution Wholesaler Retailer E-commerce

2. Success criteria ALL must be able to explain why it is important to make products and services available to customers. MOST should be able to explain what a chain of distribution is and identify the chain of distribution that a chosen business uses. SOME could be able to analyse the chain of distribution used by a chosen business.

3. Starter Read the information below. Sam is planning on opening a coffee shop up in Milton Keynes but isn’t sure where in Milton Keynes she could do this. Recommend what factors Sam should be considering when deciding where to locate in MK.

4. Factors to consider when deciding where to locate… Population size Income of the population Competition in the area Transport and parking facilities Cost of land/rent Tradition in the area Climate and physical geography Access to raw materials

5. Task Identify what factors of location each business would need to consider. There is an extension task if you finish this quickly.

6. Why’s it important to get location right? Share your thoughts with your neighbour. Now complete the box on the back side of your sheet to explain why location is so important.

7. Chains of distribution A chain of distribution refers to the stages that a product goes through from the manufacturer to the consumer. The manufacturer is the business that creates and makes the products. Only some manufacturers will sell directly to the consumer (user). Can you think of any? Bakeries Farm shops Bespoke furniture manufacturers Artists that have been commissioned to create on off, unique pieces Why would bakeries and farm shops sell directly to the consumer?

8. What is a wholesaler? A business that will buy in bulk from a manufacturer and then sell these goods onto smaller businesses. AKA a ‘cash and carry’ and will usually specialise in a type of product (food, building supplies). E.g. A corner shop would buy their supplies from a wholesaler rather than straight from the manufacturer.

9. What is a retailer? A retailer is a business that has an outlet that you can go to to buy products and services. If it is a big retailer, they will probably stock their own products as well as branded products. The retailer will sell products on behalf of the brand or manufacturer.

10. Distribution chains

11. E-commerce What is meant by e-commerce? Why would using e-commerce benefit the business? Why would using e-commerce benefit consumers? What problems might businesses face from using e- commerce? What problems might customers face when using e- commerce?

12. Your coursework What chain of distribution does your business use to get the products to customers? Does your chosen business use a website to try and sell their products to consumers? What benefits do you think that the business will see from doing so? Make sure that you include a screen shot of the website. How does using a website help to create a strong brand identity?