Unit 8: The Marketing Mix as a Business Strategy

Lesson 2
Place

Entrepreneurship
Senior High School Applied - Academic
What is the right
approach to getting the
product from the
manufacturing point to
the end consumer?

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 ● Learn the significance of
Learning placement or distribution
Objectives strategies in entrepreneurship.
● Identify the different
At the end of the
lesson you should distribution strategies adopted
be able to by businesses.

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 Introduction of “Place” in Marketing Mix

a location in any business

process where the
aspects of management,
product storage, logistics,
processing of orders, and
inventory control are
being made available
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 Distribution Channels

A distribution channel contains a set of

interdependent organizations that are involved
in the process of making a product or service
available to the end consumers.

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Why do businesses give
intermediaries or distribution
channels the job of selling their
products?

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 Types of Distribution Channels

Direct distribution
In this type of distribution channel, the
manufacturer or producer directly distributes
the product to the end consumer.

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 Types of Distribution Channels
Indirect distribution
Any business using an indirect distribution
channel will always employ selling through an
intermediary. Generally, the business will sell
its products to a wholesaler who further
reaches out to a retailer to target more
consumers.
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 Types of Distribution Channels
Dual distribution
The dual distribution channel involves a
combination of direct and indirect selling
strategies. Businesses may opt to sell their
products directly to the end consumers, and
they may also reach out to several
intermediaries at the same time.
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 Types of Distribution Channels
Reverse channels
The reverse channel has a different course—
from the end consumer, next to the
intermediary, down to the beneficiary or user.
In this kind of distribution channel, the
consumers will be using goods for recycling
and repurposing.
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 Examples: Reverse Channel Distribution

Ways Examples

1. Reuse containers, metallic equipment, drums, bottles

paper, plastics, cardboards, cartons, aluminum

2. Recycle
cans, empty aerosols

computer parts and equipment, appliances,

3. Refurbish
machines, electronics
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What factors will you take into
account in choosing the right
distribution channel for your
business?

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 Intermediary

Intermediaries are the middlemen who play a

vital role in the distribution of products to the
market.

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 Types of Intermediary

Wholesaler
A wholesaler is engaged in the buying and
handling of goods in bulk or large quantities,
which are subsequently sold to retailers in
various areas.

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 Types of Intermediary

Retailer
Individuals engaged in retailing typically
purchase goods at a low price, which are then
resold to earn a profit.

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 Types of Intermediary

Distributor
The primary role of a distributor is to obtain
products from the manufacturer itself and
distribute it to various retailers and other
endpoint locations.

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 Types of Intermediary
Agent
The core service of an agent typically revolves
around bringing buyers and sellers together
towards a negotiation process. In most cases,
agents earn money through commissions and
fees paid for their services.

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 Distribution Strategies
Intensive distribution
In this kind of distribution strategy, products are
distributed to as many retail outlets as possible.
Low-priced products such as gums, candies,
and other basic supplies are oftentimes
distributed using this approach.

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 Distribution Strategies

Selective distribution
Luxuries and other products that are upscale in
nature are primarily distributed through
selected channels.

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 Distribution Strategies

Exclusive distribution
When products are being sold to only one
specific retailer, the exclusive distribution
strategy is being employed. With this strategy,
the retailer has exclusive rights to sell the
products of a business.
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 Wrap Up

The element of “place” in the marketing mix is

deemed to be a location in any business process
where the aspects of management, product
storage, logistics, processing of orders, and
inventory control are being made available.
A distribution channel contains a set of
interdependent organizations that are involved
in the process of making a product or service
available to the end consumers.
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Wrap Up

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 Bibliography

Bygrave, William D. The Portable MBA in Entrepreneurship. Hoboken, NJ: Wiley, 2010.

Baron, Robert A. Essentials of Entrepreneurship: Evidence and Practice. Cheltenham, UK: Edward Elgar
Pub., 2014.

HBR's 10 Must Reads: On Entrepreneurship and Startups. Boston, Massachusetts: Harvard Business
Review Press, 2018.

Neck, Heidi M., Christopher P. Neck, and Emma L. Murray. Entrepreneurship: The Practice and
Mindset. Thousand Oaks, CA: SAGE Publications Ltd., 2021.

Zacharakis, Andrew, Andrew C. Corbett, and William D. Bygrave. Entrepreneurship. Hoboken, NJ: John
Wiley & Sons, Inc., 2020.

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