Week 24 (30.9.07)

Learn

Place (Distribution)

Place refer to distribution of the products or services through various channels to the end user of final customer.

Direct Channel - direct salespeople, internet, phone, , mail
Indirect Channel - manufacturers representatives, brokers or agents, distributors, retail outlets, VARs

Selection of channels based on the target customer group's preferences - when, where and how they want to buy.

Marketer must evaluate various options available to address the needs of the different customer groups, segments, industries or countries.

Each option channel has its advantages and disadvantages

Unlearn
All the while I thought that "place" in marketing refer to where the products are being sold. No idea that it is actually referring to channel of distribution.

Relearnt

In Pfizer, we have used mix channel, direct and indirect distribution.

Direct channel is -sales people. It has many advantages. They are focus, dedicated employees whom has in-depth product knowledge and understand the company structure and how and where to get answers for the customers. We have better control over the message and pricing delivered to the customers. At times when we wanted to communicate specific messages out to the customers for a quicker reach, we have also use mailers (letters) which can be personalized to the individual customer and mail is low in cost.

Indirect channel - Zuellig, our distributor. Zuellig is well-established with many contacts in the sectors they serve.