Marketing Mix ProductPromotionPricePlace

PLACE This is also called ‘Distribution’. A business must get the product to the right place, at the right time in a way that is most convenient to customers.

PLACE A product which is effectively priced and promoted may not be successful unless the consumer is able to purchase it easily.

Distribution Chain/ Channel The link between producer and customer using two intermediaries – wholesaler and retailer. Producer/ Manufacturer WholesalerRetailerConsumer

Producer/ Manufacturer WholesalerRetailerConsumer Pricemart Nestle, Kiss Baking Co. Supermarket Store You and Me

A two-intermediary channel Producer/ Manufacturer WholesalerRetailerConsumer A one-intermediary channel Producer/ Manufacturer RetailerConsumer

A business that holds stock by buying from manufacturers in large quantities, breaking the bulk and selling in smaller quantities to retailers Wholesalers

 Reduced transport costs  Cost of holding stock now paid for by the wholesaler  Wholesaler sells products in smaller quantities Benefits to the manufacturer of using wholesalers

 Offers a large range of products from different manufacturers  Will often supply in small quantities and deliver to retailers  Prepares and pre-packs goods ready to be put straight onto retailers’ shelves Benefits to the retailer of using wholesalers

A business buys products in large quantities from producers or wholesalers and sells to customers in small quantities Retailers

 They make good and services available to customers in the quantities that they want  They are often located in areas convenient for customers  They provide advice and after-sales service to consumers  They provide outlets for manufacturers’ products  They provide useful information gained from consumers about products and give feedback to wholesalers or manufacturers Functions of Retailers

Types of Retailers

Door-to-door These salespeople deal in relatively minor goods. They either walk from door to door or use some form of transportation.

Market traders These operate from stalls in open or covered areas. Prices are low because they avoid expenses such as electricity and high rent

Shops These are small and may be owned by sole traders. They provide personal attention and customers are familiar with owners and employees

Multiples or Chain Stores These are owned by one company. They are controlled from a central headquarters and are located across a country or region. One advertisement can cover all branches.

Supermarkets This is a large self-service store where customers can purchase food and household items.

Department Stores This is a large shop that is divided into departments which each operate like a single shop, that is, they are responsible for their own profitability

Vending Machines These are open 24 hours a day and are situated in public areas like hospitals and universities. They have a variety of snacks and drinks.

Catalogue Shops A catalogue shop publishes a detailed catalogue with all the products for sale. If customers are interested in the product they can purchase through a shop or order and have the item delivered.

Online shopping This involves buying items from a company’s website using a credit card. The item is delivered to the customer at a later date.