40 Marketing Mix - PLACE

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 - Whats the difference

Quick Quiz 10 Marketing Mix - Place

1. Outline the TWO parts to PLACE in the marketing mix
2. What are the most popular online purchases?
3. Outline the STAGES in LONG-CHAIN DISTRIBUTION.
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.

Worksheets
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Nine mark question