PLACE

PRINCIPLES OF MARKETING
ACCOUNTANCY, BUSINESS AND MANAGEMENT STRAND
 LEARNING OBJECTIVES

At the end of this session, the learner is expected to:

Develop effective distribution channels that follow
policies and bring convenience to consumers
Place
Distribution logistics as well as literal location where
to sell your products
Distribution Channels
Set of interdependent organizations that are involved in the
process of making products and services available for use or
consumption by consumer or individual user.
Distribution Channels
Examples: wholesalers, sales personnel, territory managers,
authorized distributors, and retail stores
3 KEY OBJECTIVES OF DISTRIBUTION

To effectively reach your target market

To minimize cost of dissemination
To maintain consistency
 FUNCTIONS OF DISTRIBUTION CHANNELS

INFORMATION Communicate and promote product & Reach market

CONSULTATION Negotiate with buyers

ORDER-TAKING Inventory Management

HOSPITALITY Gather information about customers & oversee transfer of ownership

BILLING AND PAYMENT Provide payment facilities

SAFEKEEPING Oversee transfer of ownership and Assume risks of channel works

EXCEPTIONS Address customer concerns

WHAT AFFECTS THE DISTRIBUTION SYSTEM?

SERVICE ISSUES

Lot Size - wholesale or retail

Waiting Time - shipping/delivery time
Location - foot traffic
Variety
Add on Services (Customization, demonstrations)
WHAT AFFECTS THE DISTRIBUTION SYSTEM?

NATURE OF PRODUCT

Product Size
Perishability
Technical Complexity
TYPES OF DISTRIBUTORSHIP

Company
Online Sellers Wholesalers
Salesforce

Value-Added Professional
Specialty Dealers
resellers Agencies
DISTRIBUTION SYSTEM

MASTER DISTRIBUTION
EXCLUSIVE RIGHTS
DEVELOP OWN NETWORK EXAMPLE: TOYOTA

Push product to as many

INTENSIVE different points
Wide reach EXAMPLE: LUCKY ME NOODLES

MIX OF INTENSIVE AND

SELECTIVE EXTENSIVE
EXAMPLE: APPLE
INTENSIVE
SELECTIVE
 RETAILERS

“Modern Trade has been steadily rising in the past three years”
Majority (57%) of FMCG purchases are still made in traditional
Channels comprised of
sari-sari stores, groceries and market stalls. The remaining sources
for FMCG products are Direct Sales (approximately 1%) and gifting
(6%)
RETAILERS
PUREGOLD
SM
GAISANO
MERCURY DRUG
ROBINSONS
“ The positioning of the
business
should match
the positioning of the
place.

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