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Using the Marketing Mix: Place

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Using the Marketing Mix: Place

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    1. Using the Marketing Mix: Place “I am the world’s worst salesman, therefore I must make it easy for people to buy.” F.W. Woolworth “Don’t open a shop unless you like to smile” Chinese Proverb

    2. 2.18 Place Using the Marketing Mix: Place In this topic you will learn about: Choosing appropriate outlets/distributors Types of distribution channels

    3. 2.18 Place What is place?

    4. Where can a business ‘sell’ it’s products from?

    6. Choose the right channel of distribution. Direct to consumer Through a retail outlet Through a wholesaler Using an agent Gets too gory after that – blood!Gets too gory after that – blood!

    7. 2.18 Place Choosing appropriate outlets/distributors Outlets are the places that sell a firm’s products. There are a variety of factors to take into account when choosing appropriate outlets: Type of Product Market Quantity and Frequency Geographical Location Cost Competition

    8. 2.18 Place Choosing appropriate outlets/distributors Type of product The characteristics of the product need to be taken into account. For example Coca Cola do not ship their product to the UK from the USA. Instead, they ship over the syrup and the actual product is then made in the UK using British water. The market It is important that the customers being targeted can access the product. High streets are accessible by public transport so that all customers can shop, not just those with cars. Quantity and Frequency of sales If only a few low cost items are being delivered it would not be cost effective to send them hundreds of miles. If a product is regularly being delivered then a firm might invest in a delivery system.

    9. 2.18 Place Choosing appropriate outlets/distributors Geographical Location How far is the target market from the firm? The firm will have to take into account the nearness of the market. Regional markets are far more accessible than international markets. Cost This is very important for a firm. An expensive distribution method will reduce the contribution being made to a firm’s product. Therefore, the firm must ensure that the method is cost effective. Competition Firms will take into account distribution methods used by their competitors. In fact, some firms use the same distributors as their competitors!

    10. Choosing appropriate outlets/distributors Choose a product from the following: Coca Cola Hairdressing Newspapers Computers Health gym . .

    11. 2.18 Place Types of distribution channels

    12. Types of distribution channels

    13. Wholesaler Act as a link between producer and retailer Buy in bulk and break down to smaller units to retailer They act as a storage place.

    14. Examples of Wholesalers

    15. 2.18 Place Types of distribution channels

    16. Types of distribution channels Long distribution channels can go through a number of intermediaries:

    17. 2.18 Place Activities

    18. Homework Use your time wisely for revision

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