THE

MARKETING
MIX : PLACE

BY THABISO CHOKOZA
 What is place in the
marketing mix?

Place refers to how the product is distributed from the producer to

the final consumer. There are different distribution channels that a
product can be sold through.
 Manufacture to consumer
 Manufacturer to Retailer to Consumer
 Manufacturer to Wholesaler to Retailer to Consumer

 Manufacturer
to Agent
to Wholesaler
to Retailer
to Consumer

TEACH A COURSE 2
 MANUFACTURER TO CONSUMER

Advantages Disadvantages
 All profits go to the producer  High delivery costs if consumers are based over a
 Quick method of getting product to customers wide area
 Storage costs must be paid for by the producer

TEACH A COURSE 3
 MANUFACTURER TO RETAILER TO CONSUMER

Advantages Disadvantages
 Inventory and Storage costs are paid by the retailer  Retailers usually sell competitors’ products as well
 Retailers provide easier access to products for  A share of profit is given to retailers
consumers

TEACH A COURSE 4
 MANUFACTURER TO WHOLESALER TO RETAILER TO
CONSUMER

Advantages Disadvantages
 Wholesalers will advertise and promote the product  More profit is taken away as another middle man Is
to retailers added
 Wholesalers pay for transport and storage costs  The producer loses control of the marketing mix

TEACH A COURSE 5
 MANUFACTURER TO AGENT TO WHOLESALER TO RETAILER TO
CONSUMER

Advantages Disadvantages
 The agent is more knowledgeable about the specific  Even more profit is taken away
market

TEACH A COURSE 6
 FACTORS AFFECTING PLACE DECISIONS

The type of product – is it a producer good or consumer

good
How often the product the product is purchased – does it
need to be sold through a retailer
Location of customers – should be easily accessible for
consumers
Durability of the product – if its easily perishable it
needs to be sold fast

TEACH A COURSE 7
THANK YOU!