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MGTA02H3 Lecture Notes - Maximum Exposure, Sports Equipment, Marketing Mix

Management (MGT)
Course Code
Chris Bovaird

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Chapter 9 The 4 Ps – Place (lecture only)
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
oNike sells directly to consumers, through its own retail stores
Sell through retailers
oNike sells to sporting goods store
Sell to wholesalers
oNike sells to wholesalers, who sale to retailers
Distribution Intensity
Producers can distribute: everywhere they can or a few selected locations
3 general strategies
oIntensive 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
oSelective 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 priced goods with strong branding, but you have to be good
oExclusive distribution
The product is available only through a very limited number of selected
Typical of luxury goods, where exclusivity is an important part of the
value package
Ex, Gucci Louis Vuitton, tiffany
Internet has changed the way we shop
Technology allows us to “see” a product without leaving our home
Technology allows us to browse for products 24 hours a day
Internet marketing
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