4 P's

1. Place

2. PLACE
Distribution
Decisions

3. Place
• Make the product convenient for the
target customers to purchase
• Includes all company activities involved
in making the product available to
target consumers
– Channels of distribution
– Extent of market coverage
– Managing quantity and assortment
– Retail locations
– Management of inventory
– Transportation
– Logistics

4. Effective Distribution
• Providing the
product the customer
wants
• Where they want it
• When they want it
• How they want it

5. Channels
How will you distribute/sell your product?
Companies may use their own channels, or
partner channels (or both)
● Owned
○ In-house sales force
○ Website (company owned)
○ Retail store (company owned)
● Partner
○ Other retailers
○ Other websites
○ Wholesale distribution (sold in bulk to others to sell for you)

6. • Distribution (Place)
– Factor - manages acquisition or raw materials
– Products move from
• Producer or Manufacturer
– Business users & consumers
• Place
– Location selection
– Store layout
– Atmosphere
– Image building
• Location, inventory, transportation, logistics

7. • Marketing Intermediaries

8. Exhibit 12.2 A Typical Supply
Chain

9. Channels of Distribution
9
Producer of
product Consumer
Direct Channel
Manufacturer
Indirect Channel
Wholesaler Retailer Consumer
Manufacturer
Multiple
Channels
Web Site
Retailer
Wholesaler
Consumer

10. CrashCourse’s How to Communicate with Customers: Crash Course Entrepreneurship #11
https://youtu.be/gaPWVChiyfk

11. Service and Retail
Locations
• Manufacturers – cost
focused
• Service and retail –
revenue focused
– Traffic volume
and convenience
most important
– Demographics
• Age
• Income
• Education
– Location, location,
location
– Good
transportation
– Customer safety
8-11

12. Community
Considerations
• Quality of life
• Services
• Attitudes
• Taxes
• Environmental
regulations
• Utilities
• Developer support
8-12

17. Types of
Locations
Retail
Location
Stand-
Alone
or
Store
Shopping
Center
Business
District

18. Business On The Go

21. Trends in
Locations
•Foreign producers locating in U.S.
– “Made in USA”
– Currency fluctuations
•Just-in-time manufacturing techniques
•Microfactories
•Information Technology
8-21

22. 4 Steps in Choosing
a Store Location
• Evaluate residents and
existing retailers
• Shopping Center or
standalone
• Select location
according to nature of
business
• Analyze sites in
specified location type

23. Site Related Factors
• Land
• Transportation
• Environmental
• Legal
8-23

24. Multiple Plant Strategies
• Product plant strategy
• Market area plant strategy
• Process plant strategy
8-24

25. Goal of
Supply Chain
• Coordinate all activities of
supply-chain members
• Increase customer
satisfaction
• Totally customer
driven

26. Site Evaluation Checklist
Customer
Traffic
Number of
people
Purchasing
power of
customers
Psychographic
types of
customers
Vehicular
Traffic
Numbers of
vehicles
Traffic
congestion
Type on vehicle
in-out
Parking
Facility
Numbers of
parking spots
Walking
distance to
store
Availability of
employee, truck
loading

27. Site Evaluation
Transportation Accessible by
public
transportation
Ease of
delivering
and loading
Mass Transit
Store
Composition
Competition
around
Retail
balance
Numbers and
sizes of
stores in area
Occupancy Rent or lease? Maintenance
costs
Size, shape,
of lot vs.
rental charge

29. The Coca Cola Supply Chain