ENTREP 4TH LESSON 2 PLACE Definition and Importance

It talks about Place importance to its Business

1. Place

2. What is the right approach to getting the product from the manufacturing point to the end consumer? 2

3. Where do you usually buy your essential needs (e.g., food, drinks, and other prime commodities)? Why do you think some people prefer buying goods from the wet market than from the supermarket? Do you often purchase goods from convenience stores? Why or why not? 3

4. a location in any business process where the aspects of management, product storage, logistics, processing of orders, and inventory control are being made available Introduction of “Place” in Marketing Mix 4

5. A distribution channel contains a set of interdependent organizations that are involved in the process of making a product or service available to the end consumers. Distribution Channels 5

6. 6 Why do businesses give intermediaries or distribution channels the job of selling their products?

7. Direct distribution In this type of distribution channel, the manufacturer or producer directly distributes the product to the end consumer. Types of Distribution Channels 7

8. Indirect distribution Any business using an indirect distribution channel will always employ selling through an intermediary. Generally, the business will sell its products to a wholesaler who further reaches out to a retailer to target more consumers. Types of Distribution Channels 8

9. Dual distribution The dual distribution channel involves a combination of direct and indirect selling strategies. Businesses may opt to sell their products directly to the end consumers, and they may also reach out to several intermediaries at the same time. Types of Distribution Channels 9

10. Reverse channels The reverse channel has a different course—from the end consumer, next to the intermediary, down to the beneficiary or user. In this kind of distribution channel, the consumers will be using goods for recycling and repurposing. Types of Distribution Channels 10

11. Examples: Reverse Channel Distribution 11 Ways Examples 1. Reuse containers, metallic equipment, drums, bottles 2. Recycle paper, plastics, cardboards, cartons, aluminum cans, empty aerosols 3. Refurbish computer parts and equipment, appliances, machines, electronics

12. 12 What factors will you take into account in choosing the right distribution channel for your business?

13. Intermediaries are the middlemen who play a vital role in the distribution of products to the market. Intermediary 13

14. Wholesaler A wholesaler is engaged in the buying and handling of goods in bulk or large quantities, which are subsequently sold to retailers in various areas. Types of Intermediary 14

15. Retailer Individuals engaged in retailing typically purchase goods at a low price, which are then resold to earn a profit. Types of Intermediary 15

16. Distributor The primary role of a distributor is to obtain products from the manufacturer itself and distribute it to various retailers and other endpoint locations. Types of Intermediary 16

17. Agent The core service of an agent typically revolves around bringing buyers and sellers together towards a negotiation process. In most cases, agents earn money through commissions and fees paid for their services. Types of Intermediary 17

18. Intensive distribution In this kind of distribution strategy, products are distributed to as many retail outlets as possible. Low-priced products such as gums, candies, and other basic supplies are oftentimes distributed using this approach. Distribution Strategies 18

19. Selective distribution Luxuries and other products that are upscale in nature are primarily distributed through selected channels. Distribution Strategies 19

20. Exclusive distribution When products are being sold to only one specific retailer, the exclusive distribution strategy is being employed. With this strategy, the retailer has exclusive rights to sell the products of a business. Distribution Strategies 20

21. List down the different distribution channels (e.g., supermarket, convenience store, etc.) you usually go to for purchasing your essential goods or items. Give the advantages and disadvantages of purchasing from each store based on your own experiences. Activity 21

22. Part A. Answer the following questions briefly and coherently: What does the element of place in the marketing mix imply? How would you define a distribution channel? Questions 22

23. How would you compare intensive distribution and selective distribution? What is the relevance of distribution channels in entrepreneurship? Why do you think some businesses opt for an exclusive distribution strategy? Questions 23

24. Part B. Read the situation below and answer the subsequent questions. A manufacturing business is able to produce 500,000 packs of menthol candies every day. The business owner is studying the strategies that need to be implemented for his business. Questions 24

25. What kind/s of distribution channel do you think the business owner should employ? Would it be better to sell through intermediaries instead of selling directly to the consumers? Why or why not? What will you advise the owner if he wants to make his products available through online marketplaces? Questions 25

26. What considerations should the owner take into account if he will distribute his products through convenience stores? What distribution strategy should the owner employ? Questions 26

27. 27 The element of “ place ” in the marketing mix is deemed to be a location in any business process where the aspects of management, product storage, logistics, processing of orders, and inventory control are being made available. A distribution channel contains a set of interdependent organizations that are involved in the process of making a product or service available to the end consumers.

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