Unit 3 The Marketing Mix 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 ID: 604629
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Slide1
What Is Place?
Unit 3 - The Marketing MixSlide2
What Is PlacePlace 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 quantitiesSlide3
Place DecisionsPlace decisions include
locationhours of operationchannels of distributiontransportationSlide4
Channels of DistributionChannel of distribution
the route a good takes from its original source to its final customerThe most common channel of distribution for consumer goods includesa producera wholesaler
a retailer
(Continued)Slide5
(Continued)Slide6
Supply ChainAnother term for channel of
distribution
(Continued)Slide7
Wholesalers and RetailersIntermediaries
the businesses between the original source of the product and the customerTwo types of intermediarieswholesalersretailers
(Continued)Slide8
Wholesalers and RetailersWholesaler
Business to BusinesssBuys from producersSells to another business
also called
distributor
(Continued)Slide9
Wholesalers and RetailersRetailer
Business to consumersbuys from producers or wholesalerssells to consumersincludes stores, restaurants, theatres, etc.also includes nonstore retailersExamples: e-
tailers
, TV shopping channels, mail-order cataloguesSlide10
Agents and BrokersAgent
another type of intermediaryalso called a brokerconnect buyers and sellersnever own or physically handle the productmay 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 otherSlide11
Types of DistributionDirect distribution
channel of distribution with no intermediaries Indirect distribution
channel of distribution with more than one intermediarySlide12
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)Slide13
Activities of Physical DistributionPhysical distribution
the movement of goods in the distribution channelLogistics of physical distributionhandling the details involved in physically moving goodsSlide14
Components of Physical DistributionFour components of physical distribution
products to be shippedchannel memberstransportation companieswarehousesSlide15
Transportation CompaniesTransportation
physically moving goods from buyer to seller - also called shippingCarriercompany that provides the service of transportation for channel members
is
not
part of the distribution channeldoes
not own the goods shipped
Example: PurolatorSlide16
WarehousesProducts must be stored at various points along the channel of distribution.
Warehousebuilding where large quantities of products are stored until needed for shipping – inventoryJust-in-time (JIT) - a distribution strategy that
allows
for materials to be delivered the moment they are neededSlide17
Modes of TransportationFive major modes of transportation
truckshiptrainplanepipeline
(Continued)Slide18
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