The 4 Ps of Place in Marketing Channels
4P’s - Place
Place
This refers to the range of mechanisms and
channels of distribution which are used to ensure
that the product is available to the consumer in a
convenient way.
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MANUFACTURER
WHOLESALER
RETAILER
CUSTOMER
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This is the traditional chain where the
wholesaler is used to break bulk into
smaller quantities
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It is used by retailers who cannot buy
in large bulk such as small newsagents
buying from a cash and carry
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MANUFACTURER
RETAILER
CUSTOMER
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ln this channel - large retailers
buy in bulk direct from
manufacturers.
•
Savings are made by cutting
out wholesalers profit.
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MANUFACTURER
AGENT
CUSTOMER
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With this channel, an agent
replaces the traditional retailer
with an agent who sells the
product on behalf of the
manufacturer
examples include Avon Cosmetics
and Forever living
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MANUFACTURER
CUSTOMER
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With this channel, no
intermediaries are used and
goods are sold directly to the
consumer through catalogues,
internet etc.
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Target Market-
profile and location of target market. The product
must be available in a convenient location
Product Image –
the retail outlet should reflect the product image
– i.e. designer make up brands such as Mac exclusively sold in
Ireland in Mac and Brown Thomas only, not Boots
Ease of Delivery
– how easy is it to deliver goods to the retailers
location, unload products or trailor, park the truck etc
Payment Arrangement
– some retailers may look for cash on
delivery, credit may be offered etc
Cost
– rent, rates, warehouse costs, costs of transport etc will
influence the channel of distribution chosen
Place in the marketing mix refers to the distribution channels ensuring product availability. Channels of distribution vary from traditional (wholesalers) to modern (direct sales). Factors influencing channel choice include target market profile, location, product image, ease of delivery, payment arrangements, and costs. Different channel strategies cater to different market needs.
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Presentation Transcript
Place This refers to the range of mechanisms and channels of distribution which are used to ensure that the product is available to the consumer in a convenient way.
THE CHANNELS OF THE CHANNELS OF DISTRIBUTION DISTRIBUTION MANUFACTUR ER MANUFACTUR ER MANUFACTUR ER MANUFACTUR ER WHOLESALER RETAILER AGENT RETAILER CUSTOMER CUSTOMER CUSTOMER CUSTOMER
Channel One Channel One MANUFACTURER This is the traditional chain where the wholesaler is used to break bulk into smaller quantities It is used by retailers who cannot buy in large bulk such as small newsagents buying from a cash and carry WHOLESALER RETAILER CUSTOMER
Channel Two Channel Two MANUFACTURER ln this channel - large retailers buy in bulk direct from manufacturers. Savings are made by cutting out wholesalers profit. RETAILER CUSTOMER
Channel Three Channel Three With this channel, an agent replaces the traditional retailer with an agent who sells the product on behalf of the manufacturer examples include Avon Cosmetics and Forever living MANUFACTURER AGENT CUSTOMER
Channel Four Channel Four With this channel, no intermediaries are used and goods are sold directly to the consumer through catalogues, internet etc. MANUFACTURER CUSTOMER
F Factors that influence channel of actors that influence channel of distribution chosen distribution chosen Target Market- profile and location of target market. The product must be available in a convenient location Product Image the retail outlet should reflect the product image i.e. designer make up brands such as Mac exclusively sold in Ireland in Mac and Brown Thomas only, not Boots Ease of Delivery how easy is it to deliver goods to the retailers location, unload products or trailor, park the truck etc Payment Arrangement some retailers may look for cash on delivery, credit may be offered etc Cost rent, rates, warehouse costs, costs of transport etc will influence the channel of distribution chosen
