Lesson 3: MARKETING MIX: PLACE Flashcards
What does ‘where’ and ‘how’ refer to in the context of distribution?
The company distributes the products to consumers.
What are Distribution Channels?
The process of getting the products or services from the manufacturers to the end consumers.
What is Direct Distribution?
The manufacturer or producer directly distributes the product to the end consumer.
What is Indirect Distribution?
It involves selling through an intermediary.
What is Dual Distribution?
Involves a combination of direct and indirect selling strategies.
What are Reverse Channels?
When the consumers sell the products back to the company.
What are Market Intermediaries?
The entities that are vital in linking the companies to customers.
What do Wholesalers do?
They buy goods in bulk from the producer and sell them to retailers in smaller quantities.
Give an example of a Wholesaler.
Costco.
What do Retailers do?
Retailers purchase from wholesalers and facilitate Business to Consumer transactions.
Provide examples of Retailers.
- Shops
- Supermarkets
- Websites
- Sari-sari stores.
What is the role of a Distributor?
They are in direct contact with the manufacturer and are paid in commission or fees.
What is the function of an Agent or Manufacturer?
They represent another person or entity and act on behalf of the sellers.
How are agents and brokers typically compensated?
Paid on commission for a sale or transaction they have mediated.
What is Intensive Distribution?
Products are distributed to as many retail outlets as possible.
Provide an example of Intensive Distribution.
Supermarket products.
What is Selective Distribution?
Upscale products are primarily distributed through selected channels.
Give examples of brands that use Selective Distribution.
- Gucci
- Celine
- Prada
- Mont Blanc.
What is Exclusive Distribution?
When products are sold to only one specific retailer.
Provide an example of Exclusive Distribution.
Lamborghini.
