Wednesday 30 October 2013

40 Marketing Mix for growth - Place

10/10 Key Terms

  1. Wholesaler - middlemen or distributor who buys in bulk, holds stock and sells to retailers and not consumers direct
  2. Telesales - selling to the consumer through telephone selling alone.
  3. Mail order - direct marketing through mail shots leading to goods being delivered directly to the consumer
  4. Retailer - the part in the distribution that splits bulk stock holding to sell individual items to the end consumer
  5. Consumer - the user or buyer that is the end link in the distribution channel
  6. Producer - the part of the supply chain that manufacturers the goods
  7. Long chain distribution - the traditional channel of distribution that goes from producer to consumer.
  8. Intermediaries - the number of people who handle the product or service during its distribution.  .
  9. Direct selling - The method of distribution when a producer decides to supply direct to the consumer.
  10. Channel of distribution - there are generally five main channels of distribution the shortest being telesales, mail order or internet selling and the longest being producer, wholesaler, retailer, consumer

In the news 
you will find the report 'Internet Shopping' an OFT (Office of Fair Trading) market study' here In the summary of the report there are four bullet points that outline some of the problems of online trade. 

STARTER - Suggest possible solutions for each of the above

Different channels of distribution Place is not just the place that you can buy the product but HOW the product is DELIVERED to the consumer.  Different distribution channels are used depending on the product (does it need to get there quickly or safely etc) and the market (size and location)  Traditional LONG CHAIN DISTRIBUTION passes from the manufacturer through the WHOLESALER to RETAIL OUTLETS.  Each link is called an INTERMEDIARY.  A business can either PUSH products out to intermediaries or rely on consumer demand pulling the product through the distribution channel.  To PUSH products businesses can offer incentives.  Pull strategies involve using promotion to increase consumer demand

Why customers choose Consumers choose their preffered outlet due to different factors:
  • convenience
  • cost
  • reliability
  • value added
Why businesses choose a key factor when a business is choosing place is:
  • cost
  • availability
  • margins
Discussion The growth of chains has been blamed for making high streets all look the same whilst the growth of some retail giants has been responsible for the decline of smaller local shops and specialists.  others say that chains bring more reliability and lower prices.  What do you think? 

Web-based activity - official charts v download charts - What's the difference?

Group Activity

Play It is an expanding business, making computer games and consoles for teenage consumers.  You have been asked to advise it on the best method of distribution for its products.  In groups research how similar companies such as Eidos and Nintendo, distribute their products.  Present your groups view on how PlayIt should distribute its products to the class.

What is the difference between a 'pull and push distribution strategy?
Typical exam questions on - Marketing Mix for growth - Place
  1. Outline the TWO parts to PLACE in the marketing mix
  2. What are the most popular online purchases?
  4. What is the shortest possible chain of distribution?
  5. Name three traditional PLACES for retail transactions.
  6. What is meant by 'logistics'?
  7. Suggest three ways in which products can be sold directly.
  8. Suggest two areas where a retailer could add value for a consumer.
  9. Suggest two ways by which a retailer can make the act of purchasing more convenient.
  10. Give the two factors that affect the profit margins of a business.

its all about the place

Nine mark question 

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