Marketing Mix

1
Marketing Mix

• Place

2
Channel of Distribution

• This is the route that is taken by the product as
  it passes from producer to the consumer.
• Direct to consumer
• Through a retail outlet
• Through a wholesaler
• Using an agent

3
Choose the right channel of distribution.

• Direct to consumer
• Through a retail outlet
• Through a wholesaler
• Using an agent

4
Wholesaler

• Act as a link between producer and retailer
• Buy in bulk and break down to smaller units to
  retailer
• They act as a storage place.

5
Wholesaler

• Benefits for producer
• Reduces distribution costs
• Have good links with retailers

• Benefits for retailer
• Offers a choice of products from a variety of
  manufacturers.

Problems wholesaler is another link in the
chain. Adds their profit margin into the price of
the product to consumers.
6
Agents

• Agents negotiate sales on behalf of a seller.
• E.g. ticket agencies dont buy the tickets but
  offer the service of selling tickets to
  customers a commission added onto the price.

7
Retailer

• Many large multi product retailers deal directly
  with producers as well as buying from
  wholesalers.
• Think organic food
• Reach a huge number of customers over a wide
  geographical area.

Is it a marketing ploy for supermarkets promoting
buying local products or good business sense?
8
Give examples of these type of retailers

• Multiple shop organisations
• Supermarkets
• Superstores
• Department stores
• Consumer co-ops owned by members or customers
• Independent retailers

9
Personal Selling

• Selling direct to the consumer.
• Main aim is to make that sale.
• Persuasive marketing techniques used by sales
  rep.

• Important in
• Kitchen designs
• Double glazing
• Security Systems
• Conservatories
• Unimportant for
• Groceries
• Clothing
• CD/DVD
• Books

10
Direct Marketing

• Customers making purchases from your own home!
• Direct Mail
• Catalogues
• Personal selling
• Telephone selling
• E-business

• Important in
• Kitchen designs
• Double glazing
• Security Systems
• Conservatories
• Unimportant for
• Groceries
• Clothing
• CD/DVD
• Books

11
Which channel to use?

• An efficient channel should allow the product get
  to the consumer QUICKLY, when required and at a
  minimum distribution cost.
• Factors include
• The product
• The market
• Legal restrictions
• The company

12
Factors to consider choose the channel of
distribution

• Perishable goods
• Installation issues
• Heavy products
• Convenience goods
• Low value goods

13
Distribution methods

• Intensive distribution system
• This is where the producer uses the MAXIMUM
  number of stockists for its goods.

• Selective distribution system
• Producer deliberately restricts the number of
  stockists makes provision exclusive.

Why who uses a selective system?
14
Selective Distribution
More common with high value, high margin or
complex.

• Customer expects advice and after sales service
• Exclusivity establishes status on the product
• Producer wants control over the distribution
• The market is so small
• Intensive distribution would cause conflict with
  other distributors.

15
Strategies in Channel Choice success

• Pushing strategies
• Where the producer pushes the product onto the
  retailers to force customers to want their
  product.
• Discounts
• Increase dealer margin
• Dealer competition
• Point of sale display
• Trade adverts
• Trade exhibition

• Pull strategies
• Use advertising to get customers to want the
  product put the pressure on retailers to source
  these products.
• Get customers to ask for the product!

16
Traditional Modern - Direct

• Traditional producer ? wholesaler ? retailer ?
  customer
• Modern producer ? retailer ? consumer
• Direct producer ? consumer.