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Place

Place. AKA Distribution Locations and methods used to make products available to customers. Channels of Distribution. Routes products and services take from production to consumption Finding the most efficient channel means saved time and lower costs for both buyers and sellers

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Place

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  1. Place AKA Distribution Locations and methods used to make products available to customers

  2. Channels of Distribution • Routes products and services take from production to consumption • Finding the most efficient channel means saved time and lower costs for both buyers and sellers • Direct –from manufacturer to consumer • Indirect- uses intermediaries like agents and wholesalers to expand the market

  3. Four Basic Channels of Distribution

  4. Manufacturer to Consumer • Internet, direct mail, television shopping • Most cost effective but sales opportunities are limited

  5. Manufacturer to Retailer to Consumer • More expensive but more sales opportunities

  6. Manufacturer to Wholesaler to Retailer to Consumer • Reach a larger market • Wholesaler stores and sells the product • Prices lower because of mass quantities produced

  7. Manufacturer to Agent to Wholesaler to Retailer to Consumer • Manufacturer does not sell • Agent does the selling • Usually used in international marketing

  8. Physical Distribution Transportation Storage Handling Packaging A product may move through several channel members and various forms of transportation before it gets to the consumer.

  9. Transportation • Plane, pipeline, train, boat, truck, bike or a combination of these • You must decide which method is most cost efficient What are you shipping? Where is the product going? Do you need refrigeration or special methods?

  10. Product Storage and Handling • Efficient storage allows channel members to balance supply and demand • Adds to the cost • Adds to risk of damage or loss

  11. Packaging • Designed to protect the product between production and consumption • Keep product from damage or destruction • Packaging requirements • Shipping method • Where it is going?

  12. Finding Distributors • The American Wholesalers and Distributors Directory - lists suppliers • The Thomas Register - lists manufacturing companies • Trade magazines

  13. Daily Grade • Apples, MP3 Players, Magazines, Milk, Motor Oil, T-shirts, DVDs • Two people per group • One computer • Choose one of the products above • Create a flow chart showing all of the channels of distribution possible for the product. (don’t guess…look it up!) • Type each person’s name on the header, save, print, and turn in

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