Marketing Mix - Place MSD 021115

6/17/2018 Business Study
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THE MARKETING MIX :
PLACE
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WHAT WILL WE GO THROUGH
6/17/2018
 The role of the place in the market.
Business Study
 The channel of distributions.
 The function of the wholesaler.
 Methods of transporting goods.
 The Marketing plan.

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ROLE OF PLACE IN THE MARKETING MIX
6/17/2018
 Place
 Products get from producer to consumer
Business Study
 places they can be access by the consumer
 The more places to buy the product from the easier it
is to buy it. The more the places the more the profit
for the business.
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CHANNEL OF DISTRIBUTIONS
6/17/2018
Business have to decide
 Where to sell the product
Business Study
 How to get the products to consumers
 Through the 4 Channel of distribution
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CHANNEL OF DISTRIBUTION 1
6/17/2018
 Involves
 Manufacturers
Business Study
 Consumers
The manufacturers selling directly to the consumers
(Food product like Bread)
Like this
Producer Consumer
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6/17/2018
 Involves
 Manufacturers
Business Study
 Retailer
 Consumers
The manufacturers sells the product the retailer then
the retailer sell it to the consumers (Furniture or
Jewelers)
Like this
Producer Retailer Consumer 11

6/17/2018
 Involves
 Manufacturers
 Wholesaler
Business Study
 Retailer
 Consumers
The manufacturers sells the product the wholesaler
then the product goes to the retailer then the retailer
sell it to the consumers (Food Products)
Like this
Producer Wholesaler Retailer Consumer 12

6/17/2018
 Involves
 Manufacturers
 Agent
Business Study
 Wholesaler
 Retailer
 Consumers
The manufacturers sells the product to the agent then the
agent sell it to the wholesaler then the product goes to the
retailer then the retailer sell it to the consumers
Like this
Producer Agent Wholesaler Retailer Consumer

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METHODS OF DISTRIBUTION
6/17/2018
Method of distribution Description
Department stores Large store , centre of town that sell wide variety
in products
Business Study
Chain stores Two or more stores which have the same brand
Discount stores Retail stores that has discount prices on variety of

products
Superstores New very large out-of-town stores
Supermarkets Retail grocery stores with dairy produce, fresh

meat and packaged food
Direct sales Products are sold directly from the manufacturer
to the consumer
Mail order Look through catalogue or magazine and order via
post.
Internet/e-commerce Look through internet or business website and
order also possible via phone and mail
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E-commerce
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 This is selling products online.
 Such as E-bay and yahoo.
Business Study
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WHAT DOES A WHOLESALER DO?
6/17/2018
 A wholesaler(distributor)
 Important stop in the deliver chain
Business Study
 Gets products from manufacturers to consumers.
 He takes charge of goods from a manufacturer
Usually in very large amounts

 Sells them to retail at a marked up price
 Wholesaler sometimes establishes itself directly

as a put on the market offering discounts
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DISADVANTAGES OF HAVING A WHOLESALER.
6/17/2018
 The manufacturer has less control over the
quality and final delivery of the product.
Business Study
 It is potentially less profitable for the
manufacturer, because the wholesaler takes his
cut.
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ADVANTAGES OF HAVING A WHOLESALER.
6/17/2018
 They break burden - this leads to efficient
delivery.
Business Study
 Storage space is reduces
 Cheaper in ways of contact
 It improves cash flow of the manufacturer.
 Wholesalers extend credit to retailers.
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M1 M2 M3 M4 M5 Manufacturer
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1 2 3 4 5 6 7 8 9 10 11 12 Retailer
Business Study
M1 M2 M3 M4 M5 Manufacturer
W1
1 2 3 4 5 6 7 8 9 10 11 12 Retailer
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HOW TO SELECT THE RIGHT CHANNEL OF
DISTRIBUTION?
6/17/2018
You have to look at the following:
 What type of product is it?
Business Study
 Is the product very technical?
 How often is the product bought?
 How expensive is the product?
 How fresh is the product?
 Where are the customers located?
 Where do the competitors sell their product?
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METHODS OF TRANSPORTING?
Businesses need to deliver their product to the
6/17/2018
retailers which may live in different countries.
There are several ways of delivery for example:
Business Study
 Road delivery
 Railway delivery
 Canal & River delivery
 Sea Freight
 Air Freight
 Pipe Lines
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ROAD DELIVERY.
6/17/2018
This is the most versatile type of transport
 can be delivered at any time
Business Study
 relatively cheap and fast
 Own lorry can put the company name on

the side of the lorry (free advertising)
Problems
 1. pay all the costs of running lorries (ex.
Fuel, wages)
How to solve problems
 1. hire a specialist transport business to
transport the products 22
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RAILWAY DELIVERY.
6/17/2018
This is suitable for the long distance transport
 cheaper than road transport over long distances
Business Study
 faster than road over a direct route
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CANAL & RIVER DELIVERY.
6/17/2018
 Canal and river
 a slow way to transport products but it is cheap
Business Study
 (cheap=for large, heavy products.)
 (expensive= to transport by road or rail.)
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SEA FREIGHT DELIVERY.
6/17/2018
 the use that are mainly for international trade
and carries a lot of different types of products
around the world (carried in container.)
Business Study
 1. product --> 2. Package --> 3. Load onto the
ship (trains and lorries)
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AIR FREIGHT DELIVERY.
6/17/2018
 the use of small, expensive goods
 product that are fragile, get worse quickly.
Business Study
 Expensive objects are transported by planes.
 quick way of transporting.
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PIPELINE DELIVERY.
6/17/2018
This is a transportation which can only occur in
fluids (liquids or gases) over a long distance
Business Study
 Example:
 pumping oil to the oil refinery or docks
 Cheaper than pumping crude oil into tractors,

then transport by road.
 Pipe line can take the most direct route.
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SUMMARY OF METHODS OF TRANSPORTING
6/17/2018
Speed Of
Slow Fast
Delivery
Business Study
River/Canal Sea Freight Road/ Rail Air Freight
Cost Of
Cheap Expensive
Transport
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MARKETING PLAN
6/17/2018
 IF the 4P’s come together
 The sales of the product will improve so will profits.
Business Study
 Marketing mix will be adapted to suit the overall
image and target market for this product.
 Marketing department would bring everyone's ideas
together would be to produce a marketing plan.
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QUIZ TIME (LETS SEE WHAT YOU KNOW!)
6/17/2018
 Which is the fastest way of transport?
Business Study
Road or Rail
Sea freight
Air freight
Canal or River
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 Which Is better having a wholesaler or not having a
wholesaler
6/17/2018
Having a Wholesaler
Business Study
Not Having a
Wholesaler
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 Which Channel Of Distribution is the best for
Furniture.
6/17/2018
Channel OF
Distribution 1
Business Study
Channel OF
Distribution 2
Channel OF
Distribution 3
Channel OF
Distribution 4
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NOW YOU SHOULD KNOW……
6/17/2018
 The role of the place in the market.
Business Study
 The channel of distributions.
 The function of the wholesaler.
 Methods of transporting goods.
 The Marketing plan.
34

Marketing Mix - Place MSD 021115

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6/17/2018 Business Study

 The function of the wholesaler.

 Methods of transporting goods.

 The Marketing plan.

Producer Retailer Consumer 11

Producer Wholesaler Retailer Consumer 12

Producer Agent Wholesaler Retailer Consumer

Discount stores Retail stores that has discount prices on variety of

Supermarkets Retail grocery stores with dairy produce, fresh

 He takes charge of goods from a manufacturer

Usually in very large amounts

 Wholesaler sometimes establishes itself directly

 Cheaper in ways of contact

 It improves cash flow of the manufacturer.

 Wholesalers extend credit to retailers.

 How often is the product bought?

 How expensive is the product?

 How fresh is the product?

 Where are the customers located?

 Where do the competitors sell their product?

 Canal & River delivery

 Own lorry can put the company name on

 (expensive= to transport by road or rail.)

 quick way of transporting.

 pumping oil to the oil refinery or docks

 Cheaper than pumping crude oil into tractors,

 The function of the wholesaler.

 Methods of transporting goods.

 The Marketing plan.

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