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The Four P's of Marketing: Place: Maria Jewdaly L. Costales SPCBA Professor
The Four P's of Marketing: Place: Maria Jewdaly L. Costales SPCBA Professor
The Four P's of Marketing: Place: Maria Jewdaly L. Costales SPCBA Professor
Place
Maria Jewdaly L. Costales
SPCBA Professor
Marketing Mix is a
Mix:
1. Product
2. Price
3. Place
4. Promotion
Place
Place
or
distribution
ensures utmost availability
and visibility of the right
product to its right target
market through the right
distribution channel at the
right place, right quantity,
right time, right condition
and right cost.
Distribution Strategy
It is the method you use
Distribution
Channel
Can be defined as:
all the organizations
through which a product
must pass between its
point of production and
consumption.
Distributors
Dealers
Wholesalers
Retailers
Distributor
a wholesale middleman
especially in lines where selective or
exclusive distribution is common at the
wholesaler level in which the manufacturer
expects strong promotional support; often a
synonym for wholesaler.
Jobber a middleman who buys from
manufacturers and sells to retailers; a
wholesaler.
Facilitating agent a business firm that
assists in the performance of distribution
tasks other than buying, selling, and
transferring
title
(ex.
transportation
companies, warehouses, etc.)
Channels of Distribution
Thepath
through
whichgoods
and
services
travelfrom
thevendorto
theconsumerorpaymentsfor
thoseproducts travel from the consumer
to the vendor.
can
be
as
short
as
a
directtransactionfrom the vendor to the
consumer, or may include several
interconnectedintermediariesalong
the
way
such
as
wholesalers,
distributers,agents andretailers.
Selling directly to
consumers
Selling through
retailers
Selling through
wholesalers
Wholesal
Have agents
Agent
er
Agent
Wholesal
er
Retaile
rs
Consum
ers
Organization
al Users
Organizationa
l distributors
Agents
Agents
Organizationa
l Distributors
Channel 1
Drug Manufacturer
Department of Health
Govt Health Units
Govt Hospitals
End Users
Channel 2
Drug Manufacturer
Sales
Reps
Dispensing
Physicians
End
Users
Channel 3
Manufacturer
Independe
nt
Distributors
Retailers
End Users
Channel 4
Manufacturer
Wholesaler
Retailer
s
End Users
Channel 5
Manufacturer/
Distributors
Wholesalers
Jobber
Retailers
End Users
Gasoline
Stations
Traditional Products
Gasoline, oil, lubricants, &
additives
Car accessories, tires, &
batteries
Repair & maintenance/
diagnostic service
Services such as: washing,
greasing, shampooing,
change oil & related services
Vulcanizing and wheel
balancing
Vendo machines for
beverages, coffee, &
chocolates
Present Products
Non-Traditional Products
Mini-mart & boutique shop
items
Fast food services
Drive thru ATM services
Car rental
Pay phones, telefax, copier,
Foto-Me, telegram services
Mailing station services
Parking services
Health food over the counter
medicines
3. The Business
Its size and scope ex. Can it afford an in-house
sales force?
Its marketing objectives revenue or profit
maximization?
Does it have established distribution network or
does it need to extend its distribution option?
How much control does it want over distribution?
The longer the channel, the less control is
available.
4. Legal Issues
Are there limitations on sale?
What are the risks if an intermediary sells the
product to an inappropriate customer?
Selecting Channels of
Distribution
1. Market Coverage No matter whether you sell
- Inventory-carrying costs,
including:
Storage-space charges.
Cost of capital invested.
Taxes.
Insurance.
Obsolescence and
deterioration
- Packaging
- Materials handling
4. Channel Flexibility
.Ability of the manufacturer to
adapt to changing conditions
3. Inventory
4.
Transportations
Rail
Modes of
Transportation
Air
Roa
d
Courie
r
Sea
Location Issues to
Consider:
Demographics
Foot Traffic
Accessibility and Parking
Competition
Proximity to Other
Businesses
Ordinances
Utilities and Other Costs
Logistical Function:
1. Assorting
creating
product assortments from
several sources to serve
customer service.
2. Storing assembling and
protecting products at a
convenient
location
to
offer
better
customer
service.
3. Sorting purchasing in
large
quantities
and
breaking
into
smaller
amounts
desired
by
Facilitating Function
1. Financing
Extending
credit to customers.
2. Grading
Inspecting,
testing,
or
judging
products, and assigning
them quality grades.
3. Marketing Information
and
Research
providing information to
customers and suppliers,
including
competitive
conditions and trends.
Requisites of Distribution
Strategy
MARKETING LOGISTICS
Warehousing
Stocking
Trucking
Sales force
Logistics
Logistics
Importance
of Logistics:
1.
Reduced Delivery Time
2.
Pinpointing Customer Issues
3.
Quality Control
4.
Extra Services
4 Functions
of Logistics
1. Product Delivery
2. Price
3. Promotion
4. Place
Requisites of Distribution
Strategy
Marketing Functions
Selling
Processing
Delivering
Collecting
E-Commerce
Electronic commerce, commonly known
asE-commerceoreCommerce, is trading
in products or services using computer
networks, such as the Internet.
Advantages for Marketers:
1. Reduces the need for stores.
2. Allows good visual presentation and full
description of product features and
benefits.
3. Allows vast assortments of products to be
offered efficiently.
4. Allows
5.
6.
7.
8.
Thank you!