PLACE

 Placement or distribution is a very important of the

product mix definition and considers to be
permanent.
 You have to position and distribute the product in a
place that is accessible to potential buyers.
 Distribution channels – do not change on daily
basis.
 The product type is a major consideration in
deciding the type of distribution channel or
intermediary.
The Need For Marketing Intermediaries
 Today, majority of the companies serve relatively
large markets and their consumers are geographically
dispersed, they rarely sell their products directly to the
customer.
 They use distribution channels/intermediaries i.e.
wholesalers and retailers.
 Intermediaries provide access and convenience for
the product’s consumers.
KEY FUNCTIONS OF
INTERMEDIARIES
1. Information collection and dissemination
 Marketing intermediaries, particularly retailers,
provide product manufactures with vital marketing
research information on consumer profiles and product
movements.
 These are valuable for decision-making.
2. Product storage and movement
 the warehousing facilities of manufacturers are
relieved of large amounts of merchandise.
 Intermediaries or channels take care of storage and
transport of products to the customer.
3. Operational financing
 distribution channels that take care of storage and
transport assumes the costs of these activities.
4. Product Promotion
 intermediaries, particularly retailers, help in the
development and implementation of communications
programs to enhance product sales.
5. Risk Taking
 most marketing intermediaries eventually pay for
merchandise they carry.
 they assume financial risk if the product does not sell as
expected.

 The use of marketing intermediaries increases the price

of the product.
 However, the absence of intermediaries would result in
greater expense for the customer.
 SUPPLY CHAIN

 Is the network of all the individuals, organizations,

resources, activities, and technology involved in the
creation and sale of a product.
 starts from the delivery of materials from the supplier
to the manufacturer, to the eventual delivery of the
finished product to its user.
 Distribution channel is the segment involved in the
delivery of the product from the manufacturer to the
consumer.
 The objective is to optimize the supply chain that results
in better product manufacturing and distribution. This
also leads to overall cost production and higher sales.
PRODUCT DISTRIBUTION TYPES
 Exclusive Distribution
 distribution is limited to a select number of
dealers, usually one or a few.
 Its objective is to have more control over how a
particular brand is priced, displayed, and
promoted.
 Products that are distributed exclusively usually
enjoy higher mark-ups and better brand equities.
 One major dis advantage is that brands are not
very accessible to customers.
 INTENSIVE DISTRIBUTION
 Used mostly by fast-moving consumer goods and
convenience good involves making a product
available in as many retail outlet as possible.
 gives consumers the highest level of place utility
and convenience.
 Some examples of products sold via intensive
distribution are bottled drinking water, candy, and
snack foods, etc.
 SELECTIVE DISTRIBUTION
 positioned between exclusive and intensive
distribution,.
 Involve the use of more than one but not as many
dealers as in intensive distribution.
 Allow adequate manufacturer control over retail
prices, displays, and promotion.
 WHOLESALING
 Is the sale of goods for whole and an important
product distribution function.
 Without wholesalers, product manufacturer would
have to deliver goods directly to retailer.
 Wholesaler perform the following key functions:
 Information collection and dissemination
 Bulk-breaking
 Assortment building
 Product storage and transportation
 Financing
 Risk-taking
 RETAILING
 Defined as the sale of goods/services to the final
customer for his personal consumption.
 Examples are: drug stores, sari-sari stores, movie
houses, convenience stores, and supermarkets.
 Retailers perform this following functions:
 Information collection and dissemination
 Product assortment selection
 Product storage
 Financing
 Product promotion
 Risk-taking
MANUFACTURER A RETAILER 1

MANUFACTURER B RETAILER 2

MANUFACTURER C RETAILER 3

MANUFACTURER D RETAILER 4

MANUFACTURER E RETAILER 5
MANUFACTURER A RETAILER 1

MANUFACTURER B RETAILER 2

MANUFACTURER C WHOLESALER RETAILER 3

MANUFACTURER D RETAILER 4

RETAILER 5
MANUFACTURER E