Presented by Group 7

DEVELOPING THE
MARKETING MIX
WHAT IS MARKETING MIX?

The marketing mix refers to the various elements

of your company’s offering in the market.

The marketing mix refers to the various elements

of your company’s offering

in the market.

The marketing mix, also referred to as the 4 Ps, is

comprised of four main pieces – Products, Price,

Promotion and Place. The 4Ps describe what

marketers can control and are the most critical

elements when building your marketing strategy.

IMPORTANCE OF MARKETING MIX

Your marketing mix provides a roadmap for your business objectives. It

keeps you on track, while keeping your target market in the forefront of

your mind.

Your marketing mix will help you make sure your business is

marketing the right product, to the right people, at the right price and

time.
 DEVELOPING THE

MARKETING MIX

SUPPLY CHAIN MANAGEMENT

DISTRIBUTION STRUCTURE
1
HOW SUPPLY CHAIN MANAGEMENT (SCM)

WORKS
Supply chain management (SCM) represents an
effort by suppliers to develop and implement
supply chains that are as efficient and economical
as possible.

Supply chains cover everything from production

to product development to the information
systems needed to direct these undertakings.

SCM is based on the idea that nearly every

product that comes to market results from the
efforts of various organizations that make up a
supply chain. Although supply chains have existed
for ages, most companies have only recently paid
attention to them as a value-add to their
operations.
 5 PARTS OF SCM

The supply chain manager tries to minimize shortages and keep costs down. The job is not only about

logistics and purchasing inventory.Productivity and efficiency improvements can go straight to the

bottom line of a company. Good supply chain management keeps companies out of the headlines and

away from expensive recalls and lawsuits. In SCM, the supply chain manager coordinates the logistics of

all aspects of the supply chain which consists of the following five parts.

PLANNING SOURCING
RETURNING

MANUFACTURING DELIVERING
PLANNING

To get the best results from SCM, the process usually begins
with planning to match supply with customer and
manufacturing demands. Firms must predict what their future
needs will be and act accordingly. This relates to raw materials
needed during each stage of manufacturing, equipment
capacity and limitations, and staffing needs along the SCM
process. Large entities often rely on ERP system modules to
aggregate information and compile plans.
SOURCING

Efficient SCM processes rely very heavily on strong relationships

with suppliers. Sourcing entails working with vendors to supply
the raw materials needed throughout the manufacturing process.
A company may be able to plan and work with a supplier to
source goods in advance. However, different industries will have
different sourcing requirements. Supply chain management is
especially critical when manufacturers are working with
perishable goods.
MANUFACTURING

At the heart of the supply chain management process, the

company transforms raw materials by using machinery, labor, or
other external forces to make something new. This final product
is the ultimate goal of the manufacturing process, though it is
not the final stage of supply chain management. During the
manufacturing process, a firm must be mindful of waste or other
controllable factors that may cause deviations from original
plans.
DELIVERING

Once products are made and sales are finalized, a company

must get the products into the hands of its customers. The

distribution process is often seen as a brand image contributor,

as up until this point, the customer has not yet interacted with

the product. In strong SCM processes, a company has robust

logistic capabilities and delivery channels to ensure timely,

safe, and inexpensive delivery of products.

RETURNING

The supply chain management process concludes with support for

the product and customer returns. Its bad enough that a customer
needs to return a product, and its even worse if its due to an error
on the company's part. This return process is often called reverse
logistics, and the company must ensure it has the capabilities to
receive returned products and correctly assign refunds for returns
received. Whether a company is performing a product recall or a
customer is simply not satisfied with the product, the transaction
with the customer must be remedied.
 SCM VS. Supply Chains
SCM oversees each touchpoint
A supply chain is the network

of a company's product or
of individuals, companies,

service, from initial creation

resources, activities, and

to the final sale. technologies used to make

With so many places along the

and sell a product or service.
supply chain that can add
A supply chain starts with the

value through efficiencies or

delivery of raw materials from

lose value through increased

a supplier to a manufacturer

expenses, proper SCM can

and ends with the delivery of

increase revenues, decrease

the finished product or

costs, and impact a company's

service to the end consumer.
bottom line.
 TYPES OF SUPPLY CHAIN MODELS

Supply chain management does not look the same for all companies. Each business has its own goals,

constraints, and strengths that shape what its SCM process looks like. In general, there are often six

different primary models a company can adopt to guide its supply chain management processes.

Continuous
Agile Fast Flexible
Efficient Custom

Flow
Model Model Model Model Model
Model
Continuous Flow Model

One of the more traditional supply chain methods, this

model is often best for mature industries. The continuous
flow model relies on a manufacturer producing the same
good over and over and expecting customer demand will
little variation.
 Agile Model

This model is best for companies with unpredictable

demand or customer-order products. This model prioritizes
flexibility, as a company may have a specific need at any
given moment and must be prepared to pivot accordingly.
 Fast Model

This model emphasizes the quick turnover of a product

with a short life cycle. Using a fast chain model, a

company strives to capitalize on a trend, quickly produce
goods, and ensure the product is fully sold before the
trend ends.
 Flexible Model

The flexible model works best for companies impacted by

seasonality. Some companies may have much higher
demand requirements during peak season and low volume
requirements in others. A flexible model of supply chain
management makes sure production can easily be ramped
up or wound down.
 Efficient Model

For companies competing in industries with very tight profit

margins, a company may strive to get an advantage by
making their supply chain management process the most
efficient. This includes utilizing equipment and machinery in
the most ideal ways in addition to managing inventory and
processing orders most efficiently.
 Custom Model

If any model above doesn't suit a company's needs, it can

always turn towards a custom model. This is often the case
for highly specialized industries with high technical
requirements such as an automobile manufacturer.
WHAT IS AASUPPLY
WHAT IS SUPPLY CHAIN
CHAIN MANAGEMENT
MANAGEMENT EXAMPLE?
EXAMPLE?

Supply chain management is the practice of coordinating

the various activities necessary to produce and deliver

goods and services to a business’s customers. Examples of

supply chain activities can include designing, farming,

manufacturing, packaging, or transporting.

WHY IS SUPPLY CHAIN MANAGEMENT IMPORTANT?

Supply chain management is important

because it can help achieve several

business objectives.
For instance, controlling manufacturing

processes can improve product quality,

reducing the risk of recalls and lawsuits

while helping to build a strong consumer

1
brand.
Supply chain management provides

several opportunities for companies to

improve their profit margins and is

especially important for companies with

large and international operations.

WHAT ELEMENT OF THE MARKETING MIX DEALS

WITH SUPPLY CHAIN MANAGEMENT?

Place is the marketing mix element that deals with supply chain

management as it involves the processes that take goods and

services from their raw beginnings to the ultimate destination—

the customer.
DISTRIBUTION
STRUCTURE
The way in which an

organization arranges the

movement or delivery of its

products to end-users,

either by direct supply or by

means of one or more

intermediaries.
WHAT IS A DISTRIBUTION CHANNEL?
A distribution channel is a chain of businesses or

intermediaries through which a good or service

passes until it reaches the final buyer or the end

consumer. Distribution channels can include

wholesalers, retailers, distributors, and even the

internet.
Distribution channels are part of the downstream

process, answering the question "How do we get

our product to the consumer?" This is in contrast to

the upstream process, also known as the supply

chain, which answers the question "Who are our

suppliers?"
UNDERSTANDING DISTRIBUTION CHANNELS

A distribution channel is a path by which all goods and services

must travel to arrive at the intended consumer. Conversely, it

also describes the pathway payments make from the end

consumer to the original vendor. Distribution channels can be

short or long, and depend on the number of intermediaries

required to deliver a product or service.

UNDERSTANDING DISTRIBUTION CHANNELS

Goods and services sometimes make their way to consumers

through multiple channels—a combination of short and long.

Increasing the number of ways a consumer is able to find a good

can increase sales. But it can also create a complex system that

sometimes makes distribution management difficult. Longer

distribution channels can also mean less profit each intermediary

charges a manufacturer for its service.

THE THREE TYPES OF DISTRIBUTION CHANNELS

There are three ways to make sure a product gets to the final consumer.

DIRECT

INDIRECT

HYBRID
 DIRECT

With direct channels, the company is fully responsible for delivering

products to consumers. Goods do not go through intermediaries before
reaching their final destination. This model gives manufacturers total
control over the distribution channel.
 INDIRECT

With indirect channels products are delivered by intermediaries, not by

the sellers. The benefit is that this makes it possible to sell larger
volumes and sell to a range of customers. However, products have
higher prices due to the commissions paid to intermediaries.
HYBRID

Hybrid channels are a mix of direct and indirect channels. In this

model, the manufacturer has a partnership with intermediaries, but
it still takes control when it comes to contact with customers.
THE THREE METHODS FOR DISTRIBUTION CHANNELS

There are three different delivery methods for distribution.

EXCLUSIVE DISTRIBUTION

SELECTIVE DISTRIBUTION

INTENSIVE DISTRIBUTION
EXCLUSIVE DISTRIBUTION

With exclusive distribution, intermediaries take the company’s products to

specific sales outlets. This is usually done by a sales representative. This
means that only exclusive retail outlets will be able to sell the items to
consumers. Depending on the quality of the product, this is a great
strategy not only for manufacturers but also for the retail outlets or chain
stores selected.
SELECTIVE DISTRIBUTION

With selective distribution, the company allows sales to a specific group of

intermediaries who are responsible for selling items to final customers.In
this case, the intermediary becomes the real consultant for consumers,
answering questions and recommending appropriate products for their
needs.
INTENSIVE DISTRIBUTION

In intensive distribution, the manufacturer tries to place their product in

as many sales outlets as possible.The manufacturers themselves, sales
teams, and commercial representatives are all involved in this method.
They are responsible for distributing products to sales outlets.This
distribution method is generally used by manufacturers of low-cost
products with a high frequency of consumption.
THE STRATEGIES OF CHANNELS OF DISTRIBUTION
 THE ROLE OF THE MANUFACTURER IN A CHANNEL OF DISTRIBUTION

Channels of distribution develop when many exchanges take place

between producers and final consumers. Manufacturing is the first major
activity in a channel of distribution when a commodity is manufactured.
But before it is manufactured, certain key items need to be sourced. This
is the responsibility of the purchasing or procurement department.
 THE ROLE OF THE WHOLESALER IN A CHANNEL OF DISTRIBUTION

Once goods have been manufactured, they are transported to the

wholesaler (in a traditional channel of distribution, although this is not
necessarily the case). The wholesaler’s key goals are to establish solid
relationships with manufacturers and retailers in terms of Just-in-Time
manufacturing and movement of goods.
 THE ROLE OF THE RETAILER IN A CHANNEL OF DISTRIBUTION

In a traditional supply chain, once goods have reached the wholesaler,

they are purchased by the retailer.The smooth functioning of a retail
business is critically dependent on the physical flow of goods from the
manufacturer to the retailer. The location of a retail outlet is also
critical for survival.
 DISTRIBUTION CHANNEL LEVELS

Besides the types and methods of distribution channels, they may also operate on different
levels. Their levels represent the distance between the manufacturer and the final consumer.

ONE-LEVEL CHANNEL

TWO-LEVEL CHANNEL

THREE-LEVEL CHANNEL
ONE-LEVEL CHANNEL

The one-level channel entails a product coming from a producer to a

retailer and then to the end buyer. The retailers buy the product from the
manufacturer and sell it to the end buyers. The one-level channel is ideal
for manufacturers of furniture, clothing items, toys, etc.
TWO-LEVEL CHANNEL

Wholesalers generally make bulk purchases, buy from the producer, and
divide the goods into smaller packages to sell to retailers. The retailers
then sell the goods to the end buyers. The two-level channel is suitable
for more affordable and long-lasting goods with a larger target market.
THREE-LEVEL CHANNEL

The three-level channel is similar to the two-level channel, except the

goods flow from the producer to an agent and then to a wholesaler.
Agents assist with selling the goods and getting the goods delivered to
the market promptly.
IMPORTANCE OF DISTRIBUTION CHANNEL
TIMELY DELIVERY OF PRODUCTS

This is one of the important function of distribution channels.

Distribution channel helps in the delivery of products to customers
on the right time.
MAINTAIN STOCK OF PRODUCTS

Distribution channel has an efficient role in maintaining sufficient

stocks of goods. It helps in maintaining the supply of goods as per
the demands in the economy.
PROVIDES MARKET INFORMATION

Distribution channel is served as the medium through which business

acquire all required information from the market. It takes all
information like demand, price & nature of competition in the market
from its different intermediaries involved in its distribution channel.
 PROMOTION OF GOODS

Distribution channels helps in marketing & promotion of products.

There are several middlemen’s who are involved in the distribution
system of businesses. These intermediaries inform the customers about
the product.
 PROVIDE FINANCE

Business gets financial assistance from the distribution channel.

Intermediaries involved in distribution channel buys goods in bulk from
producers. These intermediaries give payment to producers while
purchasing.
 GENERATES EMPLOYMENT

Distribution channel generates employment in the economy. There are

huge number of peoples who are involved in the distribution system of
businesses. These people are wholesaler, retailers & different agents.
MAINTAIN
DISTRIBUTION
STOCK OFOF
PRODUCTS
RISK

Risk is something which is associated with each & every business.

Distribution channels save the producers from the risk of delivering
products to customers safely & timely.
CHOOSING THE RIGHT DISTRIBUTION CHANNEL

Distribution channels may vary

depending on a particular

manufacturer’s product type and

their sales targets. It is why it is

pivotal to choose the right

distribution channel.The channel

should align with the firm's overall

mission and strategic vision

including its sales goals. The method

of distribution should add value to

the consumer.
 Group 7

BRIOLA

VILLAMER PUGAY DELA ROSA SIOCSON
Aljon Daniella Leona Jamelle Jilian
 Presented by Group 7

MUCHAS GRACIAS !