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MGTA02H3 (136)

Chapter 9.docx

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University of Toronto Scarborough
Management (MGT)
Chris Bovaird

Chapter 9 The 4 Ps – Place (lecture only) Place • The part of the marketing mix concerned with getting products from the seller into the hands of the buyer • Customers will not buy product: if they can’t see it, if they can’t sample it, if it’s hard to find, if it’s hard to get • Customers must be able to find it, see it, sample it, easily and quickly, ex pizza 30min or it is free • The business must make product easy to find, easy to get • Part of your market research must ask question like: where do you live? Where and when do you shop? Distribution Channels • How to get into consumers’ hands? • Producers can distribute product themselves, or use intermediaries • Sell direct to consumer o Nike sells directly to consumers, through its own retail stores • Sell through retailers o Nike sells to sporting goods store • Sell to wholesalers o Nike sells to wholesalers, who sale to retailers Distribution Intensity • Producers can distribute: everywhere they can or a few selected locations • 3 general strategies o Intensive distribution  Obtain maximum exposure, saturate all possible outlets  Appropriate when consumers won’t go out of their way to find a product or service, or where there are acceptable substitutes o Selective distribution  Product is available through a limited ni=umber of selected stores  Appropriate when consumers are prepared to “shop around” – they have brand loyalty  Ex, medium
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