THE PLACE

MARKETING MIX

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MARKETING MIX

How the goods get from the producer to the customer.

TYPES OF DISTRIBUTION

• Direct distribution – from a producer directly to customers

• Indirect distribution - distributing by the use of an intermediary (wholesalers, retailers)PRODUC

ERCUSTOM

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PRODUCER

COSTUMER

Indirect distribution

WHOLESALER

RETAILER

DIFFERENCE BETWEEN WHOLESALE AND RETAIL

• Retail: A retail store sells individual items to the public (consumers).

• Wholesale: Wholesaler sells pallets of items to the retailer (other companies).

FUNCTION OF DISTRIBUTION CHANNELS• Transportation - transports products

from the manufacturer to retailers and customers.• Information - collects and analyzes

informations about current and potential customers, competitors, suppliers. • Contact – finds and establishes

contact with prospective buyers.

FUNCTION OF DISTRIBUTION CHANNELS• Matching - involves tailoring the

product to fit customer needs.• Financing - a distribution channel

partner finances his costs, including buying and storing .• Risk - a distribution channel shares

some of the business risks.

TYPES OF RETAILERS• Department store – a collection of smaller

retail stores, offers a wide range of products, is managed by one company. Example: Former department store Kotva or Prior• Shopping centers - a large sales area,

offering a full range of goods (food, fashion, electronic, household good) and services (hairdresser, cinema, fast food), prices of products can be various (expensive, cheap), each part is owned by different ownersExample: OC Futurum Kolín, OC Chodov

TYPES OF RETAILERS• Speciality retailers – specialising in

specific products, this type of retailer is able to offer the customer expert knowledge and a high level of service.

Example: florist, butcher, fashion, stationery • Supermarket – focused on large

range of food and beverage products. Sometimes you can buy there electrical products, fashion and household goods.

Example: Kaufland, Tesco, Billa

TYPES OF RETAILERS• Grocery stores – a relatively small

shops offering a narrow range of FMCG goods at higher pricesExample: small shops in villages, shops with extended shopping hours („Večerka“)• Discount retailer – offers a variety of

discounted products, they offer low prices on less fashionable branded products or returned goods at discounted prices.

Example: Outlet shops

Resources:• http://www.learnmarketing.net/place.htm• http://www.the-reseller-network.com/content/88/types-of-retailers/• http://www.ehow.com/info_7751319_major-functions-distribution-channel.html