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