1.3 Marketing Mix and Strategy 1.3.4 Distribution: Theme 1: Marketi NG and People

THEME 1:
MARKETI Think of a small item you have bought this week e.g. a bar
NG AND of chocolate or bottle of water.
PEOPLE Where did you buy it from?
Draw a flow chart to show how the product got from the
manufacturer to you.
How many stages did it pass through?
https://www.youtube.com/watch?v=3IuPC82y4uY
1.3 MARKETING MIX AND STRATEGY

Edexcel Business 1.3.4 DISTRIBUTION
1.3.4 DISTRIBUTION
 In this topic you will learn about

 Distribution channels
 Changes in distribution to reflect social trends:
 online distribution
 changing from product to service
THE MARKETING MIX - PLACE
 Place defines both the physical location where a product is

available as well as the distribution channel it has travelled
through to get from the manufacturer to the customer
 Place can be a physical market where buyers and sellers
meet face to face or a virtual location i.e. over the internet
 Increasingly firms are adopting a multi-channel approach to
place
DISTRIBUTION
 Place is the term given to distribution

 Distribution is the process of getting the firm’s product to
the market
 Distribution channels are the routes to market that a
product takes from producers to the final customer
 There are a number of distribution channels available to
firms:
 Short distribution channels are where the
producer sells either directly to the customer or
through a retailer
 Long distribution channels are where there are
more than one intermediary (middle person)
between the producer and the customer
TYPES OF DISTRIBUTION
CHANNELS
 Producers can use direct selling whereby they sell directly

With reference to the final consumer
to Tesco
 Often, producers use retailers who sell products on to the
explain what is
general public
meant by a
multi-channel  Wholesalers buy large quantities of supplies from
distribution producers and sell them on in smaller quantities. For
strategy. example, a corner shop might go to a wholesaler to buy
their products
 Increasingly, firms are using e-commerce benefiting from
the power of the internet to sell on their products
 Multi-channel distribution is when a firm chooses to use a
combination of methods
TYPES OF DISTRIBUTION
CHANNELS
DISTRIBUTION DECISIONS
Distribution decisions will be affected by a number of factors including:

 Type of Product
 The characteristics of the product need to be taken into account. For
example Coca Cola do not ship their product to the UK from the USA.
Instead, they ship over the syrup and the actual product is then made in the
With reference UK using British water
to travel agents
and other  Market
businesses in  It is important that the customers being targeted can access the product.
the tertiary High streets are accessible by public transport so that all customers can
sector explain shop, not just those with cars
the factors  Is the businesses targeting a local, national or global market?
influencing a
 Quantity and frequency
general move
away from the  If only a few low cost items are being delivered it would not be cost
high street. effective to send them hundreds of miles. If a product is regularly being
delivered then a firm might invest in a delivery system
DISTRIBUTION DECISIONS
Distribution decisions will be affected by a number of factors

To what extent including:
has making
Thornton's’  Geographical location
products more  How far is the target market from the firm? The firm will have to
widely available take into account the nearness of the market. Regional markets are
damaged the far more accessible than international markets
brand image?
 Cost
 This is very important for a firm. An expensive distribution method
will reduce the contribution being made to a firm’s profit.
Therefore, the firm must ensure that the method is cost effective
 Degree of control
 Businesses may want to protect their brand by limiting the spread of
the product and keeping tight control of where it is available and at
what price
TEST YOURSELF - 5
MINUTES
1. What is meant by the term multi-channel distribution.
2. State 2 intermediaries a product may pass through from manufacturer to

consumer.
3. State 3 factors a business will consider when making distribution decisions.
End
SOCIAL TRENDS
 Changes in distribution to reflect social trends include:

 Online distribution
 The distribution of media content digitally as
Have you ever
hired a film or a
opposed to physically
game from a high
street store?
 News, music, films etc. can all be accessed via the
internet without a need to have a physical copy
 Changing from product to service
 This has led to a business changing from being a
physical, tangible product e.g. a magazine to a
How would you
now access a film service e.g. a provider of downloadable materials
or game?
Q. Analyse the main factor which led to the recent
struggles of high street retailers such as Blockbusters.
1.3.4 DISTRIBUTION
 In this topic you have learnt about

 Distribution channels
 Changes in distribution to reflect social trends:
 online distribution
 changing from product to service

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THEME 1:

How many stages did it pass through?

1.3 MARKETING MIX AND STRATEGY

 In this topic you will learn about

 Place defines both the physical location where a product is

 Place is the term given to distribution

 Producers can use direct selling whereby they sell directly

Distribution decisions will be affected by a number of factors including:

Distribution decisions will be affected by a number of factors

1. What is meant by the term multi-channel distribution.

2. State 2 intermediaries a product may pass through from manufacturer to

3. State 3 factors a business will consider when making distribution decisions.

 Changes in distribution to reflect social trends include:

 In this topic you have learnt about

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