Agenda

Warm-up
Place - Notes
Case Study
Activity

What is Place?

​Definition:

related to how products are delivered from the producer to the customers, and it involves various distribution channels

​You can sell directly to consumer or through an intermediary

​Intermediaries

A person or business that acts as a go-between in a transaction

There are three types of intermediaries:
Wholesaler
Retailer
Agent

Wholesaler

​They act as a central delivery and collection point, so they can significantly reduce distribution costs

​ A business selling goods in large quantities to retailers, generally at a low price.

​Breaking bulk - When wholesalers break larger units of product into smaller units to deliver to retail outlets.

​Retailers

A business that sells products to the public in relatively small quantities for use or consumption rather than for resale.

Examples:
Convenience stores
supermarkets
Online retailers
department stores
Vending Machines
Chain Stores

Agents

A person who acts on behalf of another person or group.

Agents promote and sell products on behalf of producers. The key difference between an agent and a retailer is that the agent does not own the product it is selling

Commission - a percentage of money on every sale it arranges

Examples of Agents

​Price Comparison Websites
Travel Agents
Estate Agents
eBay
International Distributors

Distribution Channels

the path a product takes when it travels from producer to the final consumer

There are two types of distribution channels:
Direct
Indirect

Direct Distribution Channels

The product goes straight from producer to the consumer, there are no intermediaries

I.E. Local bakeries

Indirect Distribution Channels

A type of distribution channel in which the producer reaches the customers via one or more intermediaries.

Activity

Select a company of interest to you and conduct some reserarch on that company. Answer the following questions and be ready to share out to the class

What distribution channels does the company currently use?
How does their distribution support their brand positioning?
What are the advantages and disadvantages of their current strategy?
Has technology changed their distribution aproach?