PLACE JARINA, JHON LESLIE

BSBA in Marketing Management

Polytechnic university of the Philippines
 INTRODUCTION

Place often offers a different side of value

(utility) to the customer. Who would want to travel
10 miles to have a regular dinner, even if that is
priced very competitively and has a super quality?
Services are often chosen for their place utility.
Closer to the customer means higher probability of
purchase.
 QUESTION!

Can Services be Separated from

Service Providers?
 ANSWER!

No; unlike goods, services cannot

be separated from its provider
simply because they are provided
where the providers are.
DISCUSSION
 Place Mix is deciding where and
how the services will be available to
the customers at the right time and
at the right place to result in
maximum advantage to the business.
 Place Mix simply refers to the
Distribution of Products and Services
including the Methods of Distribution
and the Scope of the Distribution of
the products or services to be easily
accessible to the target consumers.
DIRECT AND INDIRECT DISTRIBUTION
 DIRECT DISTRIBUTION

A direct distribution channel is

organized and managed by the
manufacturer itself.
 QUESTION!

Why do most manufacturing firms do

not utilize the use of direct
distribution?
 ANSWER!

It is all about line of expertise!

Manufactures are manufactures;
not a shipping nor a retailing
company.
WHEN DO WE USE DIRECT DISTRIBUTION?
• Industrial products geographically
• Expensive and complex concentrated market
goods
• Bulking products • Products bought
• Customized products infrequently by relatively
• Services small numbers of
• Products sold in customers
 INDIRECT DISTRIBUTION

An indirect distribution channel relies

on intermediaries to perform most or
all distribution functions, otherwise
known as wholesale distribution.
WHEN DO WE USE INDIRECT DISTRIBUTION?

• Consumer goods
• Inexpensive and simple goods
• Small products
• Standardized products
• Goods sold in dispersed markets
• Goods sold frequently and to many customers
MARKET COVERAGE
 MARKET COVERAGE

Market coverage refers to how

wide or varied you want your
products to be distributed. This
applies to either direct sales or
through intermediaries. There are
three types of market coverage that
you may want to adopt.
MARKET COVERAGE

Intensive

Selective

Exclusive
 INTENSIVE

You sell your products in

as many locations or markets
as possible.
EXAMPLE
 SELECTIVE

Selling only to a few select

businesses or customers.
EXAMPLE
 EXCLUSIVE

Restricting the product

distribution to only one
reseller.
EXAMPLE
DISTRIBUTION CHANNEL
DISTRIBUTION CHANNEL

Distribution has several

levels, Level 0, Level 1, Level 2
and Level 3. Each level is
composed of participants
called Channel Members.
 LEVEL 0

A level zero distribution

channel is the simplest. It
involves a direct sale from
manufacturers to consumers
with no intermediary.
 LEVEL 1
A level one channel has
one intermediary as the
middleman between the
producer and consumer. An
example is a retailer
between manufacturer and
consumer.
 LEVEL 2

When thinking about levels,

associate the number to the number of
intermediaries. In this case, a level two
channel involves two intermediaries
between producer and consumer. An
example here would be a wholesaler
selling to a retailer who then sells to
the consumer.
 LEVEL 3
Here’s where an agent or
broker comes in. Agents work on
behalf of companies and deal
primarily with wholesalers. From
here, the wholesalers sell to
retailers who then sell to
consumers.
DELAY OF PRODUCT TRANSPORTATION
 DELAY OF PRODUCT TRANSPORTATION

• MISCOMMUNICATION WIT THE CHAIN

• INCORRECT SHIPPING DETAILS
• WEATHER
• GEOGRAPHICAL LOCATION
• VEHICULAR RESTRICTIOS
• CUSTOMS INSPECTION