P.o.M 5.

3 Product Placing
Product Placing

refers to a product's  distribution channels

delivering value to the target market

Market Intermediares

the middlemen that are positioned between the manufacturers and customers

serve as the firm's distribution channel to reach its target market

Upstream Supply

supply the items needed to create a product for the consumers

Downstream Supply

distribution channels from producers to consumers

includes entities like the wholesalers and the retailers

Distribution Channels

adds value by bridging the major time, place, and possession gaps that separate goods and services
from those who use them

interdependent organizations that help make a product or service available for use and consumption

Function of Intermediaries

Information

Promotion

Contact

Matching

Negotiation

Information

collection and dissemination of information about consumers, producers, and other forces in the
marketing environment

Promotion

developing and spreading persuasive communications to enhance product sales

Contact

 finding and engaging customers and prospective buyers

Matching

shaping offers to meet the buyer's needs, including activities such as manufacturing, grading,
assembling, and packaging

Negotation

aiding the companies in reaching an agreement on price and other terms so that ownership or
possession can be transferred

Place in The Marketing Mix

 Other Marketing Channels

Physical Distribution
companies without or have few warehousing facilities are relieved of large amounts of
merchandise
Financing
marketing channels assume the cost of storage and transporting the goods to consumers
Risk-taking
taking financial risk by paying for their merchandise and assuming responsibility for the
inventory

 Types of Intermediaries

Agents or Brokers
Wholesalers
Distributers
Retailer
buy large quantities from wholesalers

Types of Distribution Channels

Direct
the company sells directly to
consumers
Indirect
has one or more intermediaries
 
Distribution Strategies

Direct Distribution
direct channel wherein the company sells directly to consumers.
Indirect Distribution
having market intermediaries involved in distributing value to the company’s target market.
Exclusive Distribution
Distribution is limited to one
dealer or retailer.
Intensive Distribtution
involves making a product available in as many locations as possible.
Selective Distribution
 employs more than one dealer, but not as many as in intense distribution.

Factors affecting the channel distribution

Market Consideration
Type of product
Number of potential costumers
Geographic location
Expected volume of orders
Product Consderation
Perishable goods
Highly technical products
Medical equipment is distributed directly to hospitals or through agents who provide training on
the use and maintenance of such items.
Choice of Middlemen
Capacity to access the target markets
Efficiency of operations
Expertise of middlemen
Financial, physical, and technical difficulties
Agreement on company goals
Company considerations and decisions
Control of the distribution channel
sharing of responsibilities
Financial resources