CFE

1. PLACE
MARKETING MIX

2. A business must get the
product to the right place
at the right time.
A product may not be a
success unless the
consumer is able to
purchase it easily, even if
it is heavily advertised
and at the right price.
PLACE

3. CHANNEL OF DISTRIBUTION
The route taken by a product as it passes from the
producer to the consumer.
Producer
Retailer
Consumer
Producer
Wholesaler
Consumer
Producer
Wholesaler
Retailer
Consumer
Producer
Consumer

4. Factors affecting channel of distribution
The product being sold
The finance available
The reliability of companies in the chain
The desired image of the product
Government restrictions
The product life cycle
Manufacturer distribution quality

5. EXAMPLES
Many firms distribute their
goods from large, centralised
distribution centres to benefit
from economies of scale.
A small local bakery, on the
other hand, will deliver goods to
the retailer for the consumer to
purchase.

6. Wholesalers
Act as a link between producers and retailers.
They buy in bulk and break down the units into
smaller quantities which can then be handled by
retailers.

7. Why use wholesalers?
Established distribution networks
Strong links with retailers.
By breaking down products into smaller batches
they allow the producer to concentrate on making
the product.
They bear the cost of storage or warehousing.

8. Saves the manufacturer from making numerous
small deliveries to many retailers, therefore
reducing costs.
The wholesaler carries the risk of the stock
losing popularity and going out of fashion.
Manufacturers may lose control over the way the
product is marketed to the consumer.
The wholesaler is likely to take some of the
profit so prices have to be higher

9. Retailers
Many large retail outlets deal directly with the
manufacturer
For example Sainsbury’s and Marks and Spencer.

10. What is a retailer?
The retailer is an outlet where consumers can physically
buy goods or services.
Retailers offer a variety of goods and services from
different producers.
Store the goods in their premises
 Prepare and display goods for sale
 Provide information to consumers through advertising
Offer consumers credit facilities, guarantees, after
sales service and delivery services

11. Some retailers use an exclusive
Manufacturer
Allows retailer to specify exactly what they want
from the manufacturer in terms of price and quality.
Allows retailer to benefit from purchasing
economies of scale by buying in bulk.
Competition can be reduced as manufacturers can
be prevented by retailer from supplying identical
products to other shops.

12. Some retailers use an exclusive
Manufacturer
The manufacturer gains regular orders from the
retailer
The manufacturer saves money on advertising
The manufacturer gains direct insight as to how
they can improve the product.
The manufacturer saves money on distribution of
the product as they do not have to deliver to
different locations

13. Types of Retailer
 Provide a Description, Advantages, Disadvantages
and Examples for each of the types listed below.
(Provide information from the viewpoint of the
manufacturer)
E-tailer
Discount retailer
Convenience retailer
Supermarkets

14. Types of Retailer
E-tailer
This is an internet based company who
sell products using e-commerce and a
warehouse rather than using shop
Advantage: Wide exposure of the product
with low overhead costs
Disadvantage: E-tailers like Amazon
require large warehouses to store
products.

15. Types of Retailer
Discount retailer
This is a company who buy non-branded/
lesser known brands in bulk and
sell products at low prices to consumers
Advantage: Discount retailers have grown
rapidly in recent years due to their
popularity.
Disadvantage: Products being sold in a
discount store may suffer from public
perception of their quality

16. Types of Retailer
Supermarket
This retailer usually a large organisation
buy in bulk and stock the product in
different locations
Advantage: Stock a huge variety of
products
Disadvantage: These types of retailers can
have a bad reputation for putting smaller
businesses out of business

17. Types of Retailer
Convenience retailer
Otherwise known as a “Corner Shop” this
kind of retailer provides a limited choice of
a wide rage of household products.
Advantage: These retailers are in prime
locations in residential areas.
Disadvantage: As the retailer cannot buy
in bulk the products are usually sold at
high price to the consumer.

18. Direct Selling
Mail Order
E-commerce
Personal Selling
Direct Mail
TV Shopping Channels
Newspaper/Magazine selling

19. Direct Selling
Mail Order
E-commerce
Personal Selling
Direct Mail
TV Shopping Channels
Newspaper/Magazine selling

20. Direct Selling
Mail Order
Where customers are sent catalogues to search
through in their own time.
There is no need for a shop as the products can
be stored in a warehouse.
Very little customer service provided which can
affect sales
E-commerce
Selling products online to customers through a
website.
 Products can be viewed and purchased 24/7
Unfortunately customers cannot see or hold the
product in person which may lose some sales

21. Direct Selling
Personal Selling
 Where a company sends salesmen to consumers homes in
the hope of gaining sales.
 This allows the salesman to demonstrate the use of the
product before it is bought
 Customers may feel pressurised in to making a purchase
Direct Mail
 Selling products via mail drops sent to consumers houses.
The mail drop typically states the price and contains details
as to how the product can be ordered.
 A large area can be covered in a small time frame
 Often the leaflets can be discarded as “junk mail”

22. Direct Selling
TV Broadcasting Channels
 Where a company sells their product on a specialist
shopping channel like QVC
 This allows the presenter to demonstrate the use of the
product before it is bought
 It is very hard to get your product displayed on the channel
Newspaper/Magazine selling
 Different from being “just” an advert, selling in
newspapers/magazines means including exact prices, the
means to order and contract details.
 High exposure can be achieved at a low cost with
newspapers/magazines
 People reading the newspaper/magazine can glance over
the advert too easily

23. Extension:
RESEARCH
“LOGISTICS” Assumed knowledge from Nat 5