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PLACE
The Marketing Mix
• Product• Price
• Place• Promotion
Place
• How did I get here?
Place
• The toughest of all the P’s to remember– Because it is the least “flashy”
• How a business chooses to get their product or service to the customer– What stores to locate in– Should you sell online?– Where to locate your store– Use of a retailer vs selling directly to the customer
Channels of Distribution
Channels of Distribution• Goods and services need to be either in a
place where consumers can find them or delivered directly to the consumers
• Distribution is the means of accomplishing this goal
• Logistics – arranging for the product to move along the path to ensure it gets to the consumer efficiently, safely, cheaply and quickly– People are paid a lot of money to manage logistic
companies
Channels of Distribution
• Two major components of logistics:– Selecting, developing and managing distribution
channels– Physically distributing the products through channels
of distribution• Many companies are as successful as they are
because they have so many “ins” at different retailers– They already have the distribution network to get
their product out there and in the hands of the customer
Channels of Distribution
Channels of Distribution
• Dragon’s Den often talks of channels of distribution
• Entrepreneurs simply don’t have a way to get their new products or services to the consumer and want to use the channels that the dragon’s have already set up
Channels of Distribution
• The Distribution channel is always the choice of the business
• Intensive Distribution– The company wants product sold everywhere– If you turn around – you can find
the product– Often done with lower prices – low
involvement products– Ex: Coke has multiple channels,
multiple products, and attempts to be always available
Channels of Distribution
• Selective Distribution– The company attempts to control where the product
is sold, pricing, etc.– The product may lose a little something if you can find
it everywhere• May be seen as “mainstream” or “cheap”
– attempts to position product in a certain way through their distribution
– Products or Services will ensure that the image of the retailer fits their product• Example: Don’t sell ugg boots at Walmart
Channels of Distribution
• Exclusive Distribution– Deals are made with one or more retailers so that
they are the only ones who can sell a product.– Can gives a certain prestige to product.– The store will often make a big event and
spectacle carrying the product• Special displays, advertisements, etc
– Example – iTunes music
Channels of Distribution
• Integrated Distribution– Company owns manufacturing, distribution and
retail businesses– Companies control everything to do with the
product– Examples• Ikea• La-Z-boy• Car Dealersihps
– Why don’t all businesses do this?
Distribution Channels Activity
Identify 3 different companies and products that use each type of channel for distribution. Companies and products can not be from examples that were already given in class.•Intensive Distribution•Selective Distribution•Exclusive Distribution•Integrated Distribution
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