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Outlet—The Place Decision

Outlet—The Place Decision. Ch6.2. The Marketing Mix. How do you get someone to buy your product? How does your product get to your customer?. Channels of Distribution. The path a product takes from producer or manufacturer to the consumer. Know Your Customers.

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Outlet—The Place Decision

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  1. Outlet—The Place Decision Ch6.2

  2. The Marketing Mix • How do you get someone to buy your product? • How does your product get to your customer?

  3. Channels of Distribution • The path a product takes from producer or manufacturer to the consumer

  4. Know Your Customers • Purchased for use in a business – final user is an industrial user • Purchased for personal use – final user is a consumer • Example: shampoo could be both • Industrial user – salon or barber • Consumer – personal use at home

  5. Channels of Distribution • Direct Distribution • Goods and services sold from producer directly to the customer; no intermediaries involved • Indirect distribution • Involves one or more intermediaries • Intermediaries—people/businesses in the middle between producer & consumer **Adding channels usually increases the price the consumer/customer pays

  6. Direct Distribution Examples • SRI Sports sells its Astroturf directly to colleges & professional sports • North Face Web site • Customers can buy directly from the company • Personal Services • Independent personal trainer • Beautician • Barber • Entertainment Events • Chicago Cubs Box Office • Sears Centre Box Office • Direct Marketing • Selling to customers through use of customer database • Telemarketing • Catalogs • TV—Home Shopping Network & Infomercials • Email & Internet

  7. Indirect Channels—Intermediaries

  8. Decisions Each Business Must Make • What products to produce? • For whom (who are your customers)? • How to get the product into the marketplace to be sold (distribution)? • Multiple channels of distribution can be used

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