1. Prepared by: Manfred Evanz M. Palcat
www.facebook.com/IamEvanz
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2. PLACE
Marketing Mix
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3. PLACE
• Place - refers to providing the product at a
place which is convenient for consumers to
access. Place is synonymous with distribution
channel. Various strategies such as intensive
distribution, selective distribution, exclusive
distribution and franchising can be used by the
marketer to complement the other aspects of
the marketing mix.
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4. Distribution Channel
• Distribution Channel is a medium by which
goods and services are made available to the
consumers for use or consumption. It is a
means by which goods move from producers
or manufacturers to consumers. Speed in
product and service delivery and physical
location significantly affects the efficiency of a
distribution channel.
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5. Any marketing distribution channel
can perform functions like:
• Conducting Market Research
• Undertaking Product and Service Promotion
• Establishing Contacts
• Bringing About Negotiations to Complete
Transactions
• Physical Distributions
• Financing Distribution Activities
• Minimizing Risk-taking
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6. Marketing Intermediaries
• Marketing Intermediaries are persons and
firms that operate between the producers and
customers or industrial users.
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7. Two Main Categories of
Marketing Intermediaries:
• Wholesaling Intermediaries are persons and
firms that sell primarily to retailers and other
wholesalers or industrial users. They do not
sell significant amounts to consumers.
• Retailers are persons and firms that sell goods
and services to final consumers for personal
consumption rather than for resale. The most
common marketing intermediary.
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8. Functions of
Marketing Intermediaries:
• Buying
• Selling
• Storing
• Transporting
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9. Types of Distribution Channels
• Direct Marketing Channel. This channel has
no middlemen and intermediary levels. Good
and services are directly sold to consumers or
customers.
Manufacturer Consumer
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10. Types of Distribution Channels
• Retailer Marketing Channel. This channel
has middlemen and one intermediary level.
The intermediary is the retailer.
Manufacturer Retailer Consumer
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11. Types of Distribution Channels
• Wholesaler-Retailer Marketing Channel.
This channel has middlemen and two
intermediary levels. The intermediaries are the
wholesaler and the retailer.
Manufacturer Wholesaler
Consumer Retailer
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12. Types of Distribution Channels
• Wholesaler-Jobber-Retailer Marketing
Channel. This channel has middlemen and
three intermediary levels. The intermediaries
are the wholesaler, the jobber and the retailer.
Manufacturer Wholesaler
Jobber
Consumer Retailer
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13. Types of Distribution Channels
• Marketing Channel of Pepsico. This channel
has middlemen and many intermediary levels.
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14. PepsiCo.
Syrup Bottling
Jobbers Plant
Syrup for Cans and
Fountains Bottles
Bars, Lou Snack Convenience Grocery Vending
Restaurants Stores
nges Shops Stores Machines
Consumer
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15. Types of Distribution Systems
• The conventional distribution channel is the most
common distribution channel. It comprises of a
producer, wholesalers and retailers, all acting
independently.
• In this structure, various channel members make little
or no effort to cooperate with each other. They simply
buy and sell from each other…that is all! 
• Channel conflicts are very common, leading to
disruptions in distribution.
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16. Types of Distribution Systems
• A vertical marketing system (VMS) is one in
which the main members of a distribution
channel—producer, wholesaler, and retailer—
work together as a unified group in order to
meet consumer needs. There are channel
systems wherein the whole channel focuses at
the end of the channel on the same target
markets.
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17. Types of Vertical Marketing System
• Corporate vertical marketing system
involves the ownership of all levels of the
production or distribution chain by a single
company. An example of a corporate vertical
marketing system would be a company such as
Apple, which has its own retail stores as well
as designing and creating the products to be
sold in those retail stores.
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18. Types of Vertical Marketing System
• Contractual vertical marketing system
involves a formal agreement between the
various levels of the distribution or production
channel to coordinate the overall process.
Franchising is a common form of a contractual
vertical marketing system.
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19. Types of Vertical Marketing System
• Administered vertical marketing system is
one in which one member of the production and
distribution chain is dominant and organizes the
nature of the vertical marketing system
informally, due to its sheer size. An example of
this type of system could include a large retailer
such as Wal-Mart dictating conditions to smaller
product makers, such as producers of a generic
type of laundry detergent.
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20. Steps in Designing Channels
in Marketing
• 1. Analysis of Customers Desired service
needs
• 2. Establishing channel objectives
• 3. Identifying Major channel Alternatives
• 4. Evaluating major channel alternatives
• 5. Selecting Suitable Channel members
• 6. Training & Motivating Channel Members
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21. Thank you for listening!!!
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