PLACE in marketing mix

PLACE
Definition
The distribution methods
The distribution chain
The distribution strategies
DEFINITION
Place refers to the means by which your customer acquires your product. This includes the actual place it is purchased (the shop, the telephone, the web page, the warehouse) as well as the actual route of distribution.
TWO TYPES OF CHANNEL OF DISTRIBUTION METHODS
Indirect distribution
2. Direct distribution

Indirect distribution
Indirect distribution involves distributing your product by the use of an intermediary for example a manufacturer sells to a wholesaler and then on to the retailer.
Direct distribution
Direct distribution involves distributing directly from a manufacturer to the consumer.
The advantage of direct distribution is that it gives a manufacturer complete control over their product.
THE DISTRIBUTION CHAIN
Wholesalers
Agents
Retailers
Internet
Customers
Wholesalers
buy from producers and resell to retailers
provide storage facilities. For example, cheese manufacturers seldom wait for their product to mature. They sell to a wholesaler that will store it.
Agents
are mainly used in international markets
typically secure an order for a producer and take a commission.
can be very expensive to train , are difficult to motivate .
Retailers
have a much stronger personal relationship with the consumer
give the final selling price to the product .
have a strong `brand` themselves . Eg:
What is the name of the world’s largest retailer?
?
Wal-Mart Stores Inc., the world`s largest retailer
Walgreens store in USA
Jumbo in Portugal
Tesco express in England
Hapro Mart in Vietnam
Big C in Vietnam
Internet

The main benefit is that niche products reach a wider audience
Use e-commerce technology (for payment, shopping software, etc)
Customers
Are the last consumers
In Vietnamese saying, customers are considered as the God.

DISTRIBUTION STRATEGIES
Intensive distribution
Exclusive distribution
Selective distribution

Intensive distribution
Used commonly to distribute low priced or impulse purchase products eg chocolates, soft drinks.
Exclusive distribution
Involves limiting distribution to a single outlet
The product is usually highly priced
Eg: the sale of vehicles through exclusive dealers.
Selective distribution
A small number of retail outlets are chosen to distribute the product.
Eg: computers, televisions household appliances
PLACE
Definition
The distribution methods
The distribution chain
The distribution strategies
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