Entrepreneurship
Quarter 1 – Week 8: Marketing Mix (7Ps) Place
After going through the module, you are expected to:
Describe the Marketing Mix (7Ps) in relation to the business opportunity
The second P in the Marketing Mix is the Place. Does it play an important role in marketing?
Place refers to distribution or the methods you use for your products or services to be easily accessible to the target customers. Also
called placement or distribution, this is the process and methods used to bring the product or service to the consume
r(Luenendonk,2020).Your product or service dictates how it should be distributed ([Link]). An entrepreneur must
establish his/ her business in the most strategic place.
The place where the businesses situate and their accessibility are vital influences in marketing .Accessibility relates not just to
physical approach ability but to other means of communication and contact (Chand, 2019). Thus, the types of distribution channels
used (e.g. travel agents, middle person) and their coverage are linked to the crucial issue of accessibility.
Would you like to run your own business? If you own a retail shop, for example, the distribution chain ends with you and you supply
to your customers directly. As a manufacturer, you can decide whether to sell your products directly to consumers or to sell them to
intermediaries or middlemen to distribute them.
Distribution Strategy or Distribution Channels- refers to the process of moving goods services from the company to the customers.
Common Distribution Channels
Direct Sale is when the company/ firm plans are to move goods directly to the ultimate users. This is the most effective
channel.
Original equipment manufacturer sales involve selling a manufactured product and which is later sold as a finished
product to the end users.
Manufacturer’s representative is a wholesaler employed by one or several producers and paid on commission basis
according to quantity sold.
Wholesalers are channel members that sell to retailers or other agents for further distribution through the channel until
they reach the final users.
Brokers are distributors who buy directly from distributor or wholesaler and sell to retailers or end users.
Retailers are the ones who sell directly to customers in the store. They buy product without any intermediaries or
middleman.
Direct Mail includes printed materials used in a targeted campaign to consumers. These are sent directly to consumers.
These include catalogs, letters, email and other direct appeals.
Channel of Distribution- is made up of people or organizations involved in distribution process.
Middleman- act as go-between the producer and consumer.
Basic Types of Channel Distribution
Direct Channel Distribution- is the transfer or movement of goods and services from manufacturer to final user or
customer without the intervention of independent middleman.
Indirect Channel Distribution- is the transfer or movement of goods or tangible products and services or intangible
goods from manufacturer or producer to independent intermediaries to customer.
Intensity of Channel Coverage
Exclusive distribution- is the limited number of middleman used in a geographic area.
Selective distribution- is organizing a moderate number of wholesalers or retailers.
Intensive distribution- is organizing a large number of middleman that are used to obtain widespread market coverage
and channel acceptance.
Physical Distribution- covers to broad range of activities in connection with the efficient delivery of raw material, parts,
semi-finished items, and finished products to designated places and designated times and in proper conditions.
Ways
Transportation is railroads, motor carriers, waterways, pipelines and airways.
Inventory Management- consists of a continuous flow of goods or tangible products to match the quantity of goods
kept in inventory as closely as possible with sales demand.
Warehousing- carries the physical facilities used primarily for the storage of goods held in anticipation of sales and
transfers within a distribution channel.
Retailing- refers to those business activities involved with the sales of goods and services to the final consumer for
personal, family or household use.
Scrambled Merchandising- takes place when a retailer adds goods and services that are unrelated to each other or the
original business of the retailer.
Wholesaling- is buying or handling of merchandise and its subsequent resale to organizational users, retailers and/or
other wholesalers but not the sale of significant volume to final consumers.
Activity 1: Classify the following items as to direct or indirect distribution or placement. Write your answers on your answer sheet.
1. Milk tea
2. Television
3. Burger
4. Massage
5. Grocery
6. Ready-to-wear clothes
7. Car
8. Laptop
9. Food from eatery
10. Construction materials from hardware
Activity 2: The following questions are to check the learning you have acquired in the past lesson. Please answer them in your answer
sheet.
1. What is Place in Marketing Mix?
2. What is the importance of place in the development of marketing strategy?
3. What are the types of distribution or placement?
Activity 3: Describe your favorite store/place to hang out in relation to its location and also describe a store/place to hang out that you
have regretted in relation to its location.
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