Marketing Mix: Place (JMB)

_ is about how a business gets its products to the customers. What is the missing word? Fill in the missing words about the "place" element of the marketing mix. The objective of distribution is clear. It is “To make products available in the right place at the right time in the right quantities” Fill in the missing word Distribution is achieved by using one or more distribution channels. Copy out the the Tutor2U definition of a distribution channel. Find it on page 98 of the Course Companion. The main function of a distribution channel is to provide a link between production and the consumer who will ultimately use the product. In the space below, draw a diagram to show the three most common distribution channels. Match the term with the most appropriate description Retailers Outlets that trade directly with household customers 40-50% The margin taken by a high street retailer Direct-marketing Sale channel, with no intermediary levels Travel agent Traditional retail intermediary involved in buying vacations Wholesalers Stock a range of products from several producers. The role of them is to sell onto retailers. Advantage of wholesalers They “break the bulk” that is they will receive direct loads from producers and split this into smaller units for retailers. This means that retailers can hold less stock. “Middle-man” profits The increased costs as a result of using a wholesaler Advantage of using an intermediary Costs, even taking into account the intermediaries’ profit or commission, may be lower Advantage of using an intermediary Producers may not have sufficient resources or expertise to sell direct E-tailers Make sales through e-commerce and then distribute their product direct to the consumers Advantage of selling direct Products are not sold alongside those of competitors Advantages of selling direct The producer has complete control over the sales process