Elements of the MarketingMix

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Elements of the Marketing-Mix
Element - 4 Place Channels Distribution
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Place Strategy Decisions
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The Simple Channel System
SONY
Producer
Wholesaler
Sams Club
Retailer
Best Buy
Consumer
You
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Channel Systems Can Be Complex
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Place Decisions Are Guided by Ideal Place How
easily can a consumer get my product?
Go Direct OR Get Retailers
How to get your product to Consumer
KeyIssues
Which Retailer To Get
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• Go Direct OR Not

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Channel System May Be Direct or Indirect
Greater Control
Some Reasons For Choosing Direct Channels
Lower Cost
Internet Makes Direct Distribution Easier
Direct Contact with Customer Needs
Quicker Response or Change in Marketing Mix
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Going Direct Online!!

• The Computer Revolution has made going direct
  EASY!! But who buys Online??

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• Which Retailer to Get to
• Sell your product??

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The Retailer that gets you
Convenience
Product Selection
Key Factors Affecting Consumers Retail Choice
Fairness in Dealings
Helpful Information
Prices
Social Image
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Retailer Size and Profits
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The Main Functions of Retailers
Bulk-Breaking
Accumulating
Sorting
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Gross Margins in Selected Retail Trades for
Recent Years
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The Best Channel System Should Achieve Ideal
Market Exposure
MarketExposureStrategies
Intensive
Selective
outlets
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• How to Get your Product to the Consumer?
• Physical Distribution/Logistics

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Physical Distribution Gets It to Customers
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Physical Distribution Concept Focuses on the
Whole Distribution System
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Coordinating Logistics Activities
Shifting and Sharing
Conflict Handling
JIT
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The Transporting Function Adds Value to a
Marketing Strategy
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Which Transporting Alternative Is Best?
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Economies of Scale in Transporting
High
Shipping Cost
Low
High
Low
Shipping Quantity
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The Storing Function (Inventory Holding)
Needed When Production Doesnt Match Consumption
Keeps Prices Steady
Achieves Production Economies of Scale
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Goods Are Stored at a Cost
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Specialized Storing Facilities May Be Required
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What Will Happen to Retailers and Wholesalers in
the Future?
New Internet Applications
Improved Logistics Efficiency
Marketers and Consumers Can Expect
Development of Specialized Intermediaries
New Web-Based Retailers