Chapter 8 PLACE MIX Decisions and Strategies
PLACE
 distribution channels and physical distribution.
 where actual exchange of goods and services
actually happen
 very important element
PLACE MIX
- Right product
- Right market
- Right quantity
- Right cost
- Right condition
- Right time
Place mix is a very important element of the total
marketing mix because it ensures adequate availability
and visibility of the right product, in the right market, at
the right quantity, at the right cost, at the right
condition, at the right time, anytime and all the time.
PHARMACEUTICAL COMPANIES
»Traditional markets
»Non-traditional markets
PHARMACEUTICAL COMPANIES
- Majority employ services of distributors
- Hire sales representatives / salesmen
 Pharmaceutical majority employs services of
distributors. Distributors such as Zuellig Pharma,
Unilab, Metro drug, etc
 They also high sales representatives who regularly
visits both traditional and non-traditional market for
collection purposes or in-store promotions
PHARMACEUTICAL DISTRIBUTION CHANNELS
- Set of pharmaceutical firms and individuals that
assist transferring a drug product or service
from the drug manufacturer to the final
consumer
- Or way from the drug manufacturer’s
production to final consumption
Distribution channel
- Route of flow
Pharmaceutical firm » channel » customers
PHARMACEUTICAL DISTRIBUTION CHANNELS
Criteria to satisfy end-users orconsumers:
1. Right standards of quality
2. Right specifications of packaging and
formulation
3. Right commercial stock levels
4. Right savings
5. Right service warranties
The following are criteria of what pharmaceutical
distribution channels give to end-users or consumers
 based on the approved criteria of FDA
 of a drug
 at all times or the availability of products at all
times especially when it is needed
 In addition to the efficacy and safety of a
product
 that we give to customers, wherein these are
additional services that we give them
DISTRIBUTION CHANNEL FUNCTIONS
1. Physical transport and storing
2. Financing costs of drug distribution
3. Conducting sales and market activities
4. Building a data bank of market information
Distribution channel moves drug product from the
manufacturer to final enduser, saving time, money
and effort.
Whenever a drug manufacturer performs the
specific channel functions themselves, the product
 cost goes up and correspondingly its prices tend to
be higher. But if a manufacturer assigned
middlemen, the costs are lower and middle men
adjusts prices to cover the channel work.

 Physical transport and storing of drug

products of various therapeutic categories.
 Financing costs of drug distribution and
related market channel services.
 Conducting sales and market activities
directing or leading to target clientele  Contains only one middlemen either the
 Building a data bank of market information retailers or the independent distributors.
for marketing plans to work and achieve
desired goals, ahead of competition.

CHANNEL LEVELS

 Sometimes contains one, sometimes two,

oftentimes three middlemen because the
salesman makes the transactions to wholesalers

 In pharmaceutical industry the number of channel

levels varies in bringing the drug products and its
ownership closer to the final buyer, the end user
 A local drug trader or the DOH may serve as the
intermediary or middlemen level in behalf of the
drug manufacturer

 Contains three middlemen level, tradesmen

who sell to smaller drugstores who are not
served by large wholesaler drugstores

 Contains two middlemen level before it reaches

the end-users.
 The sales rep is the middle men between the
drug manufacturer and the dispensing doctor
while the doctor gives the medicines to the
patients who also charges the patients with
consultation fee.