1.5 - Marketing Mix: Place

Place

- “Where” and “how” the company distributes the products to consumers

Distribution Channels

- Process of getting the products or services from the manufacturers to the end consumers

Direct Distribution

- The manufacturer or producer directly distributes the product to the end consumer

Indirect Distribution

- Involves selling through an intermediary

Ex. Watsons (As a retail distributor of various makeup and skincare brands)

Dual Distribution

- When a brand has its own flagship and outlet stores but also sells through traditional retail stores

Ex. Nike having its own area in a department store but also having an outlet store

Reverse Channels

- Consumers sell the product back to the company

- Highlights recycling and repeat customers

Market Intermediaries

- Entities that are vital in linking the companies to customers

- Essential in reaching and delivering value to consumers and business customers

Wholesalers

- Buy goods in bulk from the producer or manufacturer and then sell them to retailers in smaller quantities

- B2B transaction

Ex. Costco, S&R

Retailers

- Purchase from wholesalers and facilitate B2C transactions

Ex. Shops, supermarkets, websites, sari-sari stores

Distributors

- Similar to wholesalers, they are in direct contact with the manufacturer

- Paid in either commission or fees by the manufacturer

- Work on behalf of a specific company rather than a broad range of companies (exclusive)

Agent/Broker

- are paid on commission for a sale or transaction they have mediated

Agents

- people that represent another person or entity. Usually act as representatives on behalf of the sellers

Intensive Distribution

- Distributed to as many retail outlets as possible

Selective Distribution

- Luxuries of other products that are upscale in nature

Exclusive Distribution

- Products are being sold to only one specific retailer