1. Place/Distribution

2. Place/Distribution
Place is the third component of marketing mix, also called distribution.
Refers to the process of making a product available for the consumption or use of the consumer of business user.
It covers all steps involved in moving products from the point of consumption.

3. Place/Distribution
Distribution channel - Set of interdependent organizations involved in making a product or service available for use by the target market.
Marketing Intermediaries – are companies that act as middlemen who facilitate the transfer of products from the company to the consumer

4. Functions of Distribution Channels
Information gathering and dissemination
Promotion
Contact
Matching
Negotiation
Physical distribution
Financing
Risk taking

5. Distribution Strategies
Intensive – distributes products in as many outlets as possible
Selective – this strategy permits at least two intermediaries to sell a company’s products, e.g. appliances, CD players, air conditioners
Exclusive –a company gives only one dealer the exclusive right to distribute its product in the territory.

6. The Sales Force AIDA – Common traits of successful salespeople:
Work hard
Be self-confident
Have self –discipline
Have perseverance
Be flexible
Have goals other than money
Have respect for the buyer’s good sense
Be willing to learn from others
Be able to handle big money
Be a perfectionist

7. Retailing
This form of distribution includes al activities involved in selling goods to the final consumers for their personal, non-business use.
Two (2) general types:
Store retailing
Non-store retailing

8. Store Retailing Classifications
Amount of service
Product line
Relative prices
Control of outlets
Type of store cluster

9. Types of stores based on Amount of Service
Self-service retailers – customers perform their own “locate-compare-select” process to save money
Limited-service retailers – provide more sales assistance because they carry more shopping goods about which customers need information.
Full-service retailers – carry more specialty goods that create the need for salespeople to assist customers in every phase of the shopping process.

10. Types of stores based on Product Line
Specialty stores-carry a narrow product line
Department stores – carry a wide variety of product lines (each managed separately)
Supermarkets – large, low-cost,low-margin,high-volume,self-service stores
Convenience stores
Superstores
Service businesses

11. Types of stores based on Relative prices
Discount stores
Off-price retailers
Catalog showrooms

12. Types of stores based on Control of Outlets
Corporate chains
Voluntary chain and retailer cooperative
Franchises
Merchandising conglomerates

13. Types of stores based on Store Cluster
Central business district – this was the main cluster form in the 1950s. a.k.a. downtown where the many independently owned and managed stores conduct operations.
Shopping center – this consists of a group of retail stores or businesses, which are owned, planned, developed and managed as a single unit.

14. Forms of Non-store Retailing
Direct Marketing
Direct selling or “in-home” selling
Automatic vending machines

15. Wholesaling
Includes all activities of wholesalers in selling products to those people or companies buying for resale or for business purposes.
Three distinct groups:
Merchant wholesalers
Brokers and agents
Manufacturers

16. Merchant Wholesalers
Full-service wholesalers – provide full line of service like: warehousing, credit, delivery, and mgt. assistance.
Limited service wholesalers
Cash & carry
Drop shippers
Rack jobbers
Producers cooperatives
Mail-order wholesalers

17. Brokers and Agents
Broker – brings seller and the buyer together and assists in their negotiation.
Agent – represent a buyer or a seller on a more permanent basis.

18. Manufacturer’s Sales Branches and Offices
Sales branch carries inventories and is found in such industries as automotive parts and equipment, and lumber
Sales office does not carry inventory and is more common in the dry goods industry.
Purchasing office – buys materials and supplies in behalf of the company. Performs similar role to that of agents and brokers but it is a part of the buyer’s organization itself.

19. Basic Aspects of Physical Distribution
Inventory control
Warehousing
Transportation
Water
Rail
Truck
Air