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6/17/2018 Business Study
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THE MARKETING MIX :
PLACE
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WHAT WILL WE GO THROUGH
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The role of the place in the market.
Business Study
The channel of distributions.
6/17/2018
Place
Products get from producer to consumer
Business Study
places they can be access by the consumer
The more places to buy the product from the easier it
is to buy it. The more the places the more the profit
for the business.
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6/17/2018 Business Study
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6/17/2018 Business Study
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CHANNEL OF DISTRIBUTIONS
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Business have to decide
Where to sell the product
Business Study
How to get the products to consumers
Through the 4 Channel of distribution
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CHANNEL OF DISTRIBUTION 1
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Involves
Manufacturers
Business Study
Consumers
The manufacturers selling directly to the consumers
(Food product like Bread)
Like this
Producer Consumer
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CHANNEL OF DISTRIBUTION 2
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Involves
Manufacturers
Business Study
Retailer
Consumers
The manufacturers sells the product the retailer then
the retailer sell it to the consumers (Furniture or
Jewelers)
Like this
6/17/2018
Involves
Manufacturers
Wholesaler
Business Study
Retailer
Consumers
The manufacturers sells the product the wholesaler
then the product goes to the retailer then the retailer
sell it to the consumers (Food Products)
Like this
6/17/2018
Involves
Manufacturers
Agent
Business Study
Wholesaler
Retailer
Consumers
The manufacturers sells the product to the agent then the
agent sell it to the wholesaler then the product goes to the
retailer then the retailer sell it to the consumers
Like this
6/17/2018
Method of distribution Description
Department stores Large store , centre of town that sell wide variety
in products
Business Study
Chain stores Two or more stores which have the same brand
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This is selling products online.
Such as E-bay and yahoo.
Business Study
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WHAT DOES A WHOLESALER DO?
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A wholesaler(distributor)
Important stop in the deliver chain
Business Study
Gets products from manufacturers to consumers.
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DISADVANTAGES OF HAVING A WHOLESALER.
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The manufacturer has less control over the
quality and final delivery of the product.
Business Study
It is potentially less profitable for the
manufacturer, because the wholesaler takes his
cut.
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ADVANTAGES OF HAVING A WHOLESALER.
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They break burden - this leads to efficient
delivery.
Business Study
Storage space is reduces
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M1 M2 M3 M4 M5 Manufacturer
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1 2 3 4 5 6 7 8 9 10 11 12 Retailer
Business Study
M1 M2 M3 M4 M5 Manufacturer
W1
1 2 3 4 5 6 7 8 9 10 11 12 Retailer
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HOW TO SELECT THE RIGHT CHANNEL OF
DISTRIBUTION?
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You have to look at the following:
What type of product is it?
Business Study
Is the product very technical?
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METHODS OF TRANSPORTING?
Businesses need to deliver their product to the
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retailers which may live in different countries.
There are several ways of delivery for example:
Business Study
Road delivery
Railway delivery
Sea Freight
Air Freight
Pipe Lines
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ROAD DELIVERY.
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This is the most versatile type of transport
can be delivered at any time
Business Study
relatively cheap and fast
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This is suitable for the long distance transport
cheaper than road transport over long distances
Business Study
faster than road over a direct route
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CANAL & RIVER DELIVERY.
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Canal and river
a slow way to transport products but it is cheap
Business Study
(cheap=for large, heavy products.)
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SEA FREIGHT DELIVERY.
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the use that are mainly for international trade
and carries a lot of different types of products
around the world (carried in container.)
Business Study
1. product --> 2. Package --> 3. Load onto the
ship (trains and lorries)
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AIR FREIGHT DELIVERY.
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the use of small, expensive goods
product that are fragile, get worse quickly.
Business Study
Expensive objects are transported by planes.
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PIPELINE DELIVERY.
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This is a transportation which can only occur in
fluids (liquids or gases) over a long distance
Business Study
Example:
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SUMMARY OF METHODS OF TRANSPORTING
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Speed Of
Slow Fast
Delivery
Business Study
River/Canal Sea Freight Road/ Rail Air Freight
Cost Of
Cheap Expensive
Transport
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MARKETING PLAN
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IF the 4P’s come together
The sales of the product will improve so will profits.
Business Study
Marketing mix will be adapted to suit the overall
image and target market for this product.
Marketing department would bring everyone's ideas
together would be to produce a marketing plan.
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QUIZ TIME (LETS SEE WHAT YOU KNOW!)
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Which is the fastest way of transport?
Business Study
Road or Rail
Sea freight
Air freight
Canal or River
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Which Is better having a wholesaler or not having a
wholesaler
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Having a Wholesaler
Business Study
Not Having a
Wholesaler
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Which Channel Of Distribution is the best for
Furniture.
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Channel OF
Distribution 1
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Channel OF
Distribution 2
Channel OF
Distribution 3
Channel OF
Distribution 4
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NOW YOU SHOULD KNOW……
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The role of the place in the market.
Business Study
The channel of distributions.
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