PLACE Flashcards
(19 cards)
The third “p” in the marketing mix
PLACE
the channel of distribution. All products
intended for consumers for their personal
consumption as well as those for industrial
and production purposes need a channel of
distribution. Establishing an excellent channel
of distribution ensures that the product will
reach the target customers
PLACE
Distribution entails the
use of — who are people or
organizations responsible for linking the producers
or manufacturers to consumers. They may also
interact with other intermediaries in bringing
products and services to consumers
marketing intermediaries
There are two main marketing or distribution
channels
retailers, and wholesalers
as defined by the American
Marketing Association, refers to all
activities involving the sale of goods or
services directly to the final consumers.
Individuals engaged in retailing are
collectively called retailers
Retailing
are the most common
form of retailing because there is a low
manpower requirement for
maintenance and high efficiency in
providing the product to customers
Supermarkets
are composed of pharmacies that
are found in supermarkets or malls, or as
stand-alone stores in convenient locations.
They sell prescription and over-the-counter
drugs as well as personal products, food and
beverages, and beauty products.
Drugstores
These refer to large stores that offer a variety
of products that are organized into
departments or areas, such as clothes for
men, women, or kids, pieces of jewelry.
home appliances, fashion accessories, bags,
shoes, toys, and kitchenware. Department
stores are usually located in malls
Department stores.
These are retail stores
that carry a limited number of goods, such as
basic food items, personal care products,
office supplies, over-the-counter drugs, and
commonly purchased items. They are
strategically located where supermarkets are
not readily accessible and where there is
customer traffic
Convenience stores
are huge superstores that offer
a greater variety of products. They are bigger
and more spacious than supermarkets.
Shopping malls put hypermarkets as satellite
branches, typically in locations with high
consumer traffic or at other towns, to target
more customers and promote their brands.
Hypermarkets
This approach in retailing involves the selling
of goods in other media aside from a physical
store. One of the common forms is online
retailing. Sellers can now set up online stores
where they can offer their goods for sale.
Customers, then, can choose among the
products, order them online, and even request
personal customizations before purchase
Non-store retailing
includes all activities involved in selling
products to merchandisers or producers for business
use. Merchandisers buy goods from wholesalers and
then resell those to customers. They carry a wider
assortment of products which are offered cheaper when
bought in bulk.
Wholesaling
buy goods in bulk from
producers and then resell them to retailers with a
mark-up. They are sometimes referred to as
distributors.
Merchant wholesalers
provide a wide range of services to their customers
such as recruitment of salespeople, conducting
inventory, and delivery of goods. They have a higher
income than merchant wholesalers, but the cost of
their operations is also higher because of the wide
range of services they provide to customers
full-service wholesalers
four types of full-service wholesalers
General merchandise wholesalers
Limited line wholesalers
Specialty line wholesalers
Brokers and agents
offer a wide
variety of goods. Their products include non
perishable goods, such as cosmetics, laundry
detergents, and cigarettes
General merchandise wholesalers
provide an assortment
of goods that are limited to a few specific product
lines but offer a broad selection of items. For
example, a hardware store might offer products
related to automotive repair, electric machinery,
and plumbing, among others
Limited line wholesalers
are comprised only of
a single product line but offer extensive customer
service for the products. A rack jobber is a type of
specialty line wholesaler who maintains the
displays and stock of goods in retail stores. They
usually handle non-food items such as cosmetics,
books, magazines, etc
Specialty line wholesalers
are also considered wholesalers.
Brokers facilitate the purchase and sale of goods
between buyers and sellers, acting as a third party in
transactions. On the other hand, an agent acts on
behalf of one transacting party. In general, they
negotiate the price, terms and conditions, and other
aspects of the transaction between manufacturers and
customers.
Brokers and agents
