1 Unit 3 - The Marketing MixWhat 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 operationchannels of distribution transportation
4 Channels of DistributionChannel 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 (Continued)
5 (Continued)
6 Supply Chain Another term for channel of distribution(Continued)
7 Wholesalers and RetailersIntermediaries the businesses between the original source of the product and the customer Two types of intermediaries wholesalers retailers (Continued)
8 Wholesalers and RetailersBusiness to Businesss Buys from producers Sells to another business also called distributor (Continued)
9 Wholesalers and RetailersBusiness 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 intermediaryalso 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 distributionchannel of distribution with no intermediaries Indirect distribution channel of distribution with more than one intermediary
12 Role of IntermediariesWhy do producers use intermediaries? Because intermediaries are experts at distribution. Most producers are experts at making a product, not at distributing it. (Continued)
13 Activities of Physical Distributionthe movement of goods in the distribution channel Logistics of physical distribution handling the details involved in physically moving goods
14 Components of Physical DistributionFour components of physical distribution products to be shipped channel members transportation companies warehouses
15 Transportation Companiesphysically 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 TransportationFive major modes of transportation truck ship train plane pipeline (Continued)
18 The Distribution ProcessThe 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