ABM 006: PRINCIPLES OF MARKETING

Teachers’ Guide Module #17

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: __________________________________________ Date: ________________

Lesson Title: Understanding Product Distribution (Place) Materials:

Student Activity Sheets
Lesson Objectives:
At the end of this lesson, I can: References:
Ma. Nancy T. Balasan, DBA; Marketing
1. Define product distribution; Basics-A Modular Approach
2. Differentiate wholesaling from retailing and identify their
functions; and
3. Identify the distribution strategies used by companies

Productivity Tip:
“Sometimes, things may not go your way, but the effort should be there every
single night.” -Michael Jordan, American basketball player

A. LESSON PREVIEW/REVIEW
Introduction (2 mins)

We were done with the 2 P’s of marketing Welcome Class to Day 17!  You have
mix. Two more to go and then you will be
done wondrous things for the past
equipped with the knowledge on how to
sessions. So, let’s continue doing so.
engage in the market. Can you remember
what are the 2P’s? Don’t worry, you’ve got far and I know you
will reach more. Let us finish this session
P__________ and strong. Kick off first this review test. Have
P__________ a nice day!

You may check your answer by referring to Key to Corrections at the last page

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 ABM 006: PRINCIPLES OF MARKETING
Teachers’ Guide Module #17

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: __________________________________________ Date: ________________

Activity 1: What I Know Chart, part 1 (3 mins)

I want you to honestly answer these two questions using your stored knowledge and see if you get it right
as we go along. Is that clear? I am excited to know your answer.

Questions: What I Know

1. What is the difference
between wholesaling and
retailing?
2. Why is distribution
channel important?

B. MAIN LESSON
Activity 2: Content Notes – (13 Minutes)
To deepen your understanding on the Principles of Marketing, read the following pre-printed concept notes.
Please highlight or underline the key word/s that leads to full understanding of the concept.

 Place refers to distribution or the methods and location you use for your products or services to
be easily accessible to the target customers.
 One of the important decisions that management faces is determining which marketing channel to
use. Product distribution is a critical factor in the efficient distribution of products from the
manufacturer to the final users of the products. The objective of any product distribution is to get
the right quantity of goods at the right place and right time with the least possible cost.
 These consists of activiities like materials handling, order processing, warehousing, transportation,
and inventory.

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 ABM 006: PRINCIPLES OF MARKETING
Teachers’ Guide Module #17

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: __________________________________________ Date: ________________

DISTRIBUTION CHANNELS
 Composed of marketing intermediaries. They are the people who serve as the link between the firm or
manufacturer and the market. Examples are sales agent, advertising agencies, wholesalers, and
retailers. They perform tasks such as purchasing, storing, selling, and transporting products.
 Physical distribution of products starts when there is order from customers. How to handle such order in
terms of quantity, date of delivery, speed, price, and mode of transportation to use are concerns of the
distributors.

LEVELS OF CHANNEL DISTRIBUTION

Zero-Level Three-Level
One-Level Channel Two-Level Channel
Channel Channel
• From the • Before products • This consists of • Products from
manufacturer, reach the market, two channels of the manufacturer
products reach products pass distribution pass through
the market through where products three middlemen
directly. This is marketing pass through or channels – the
also known as intermediaries before reaching manufacturer’s
direct marketing. either through the end users. selling agent, to
No marketing the wholesalers These channels wholesaler, and
intermediaries or or retailers. are the to retailer before
distributors are wholesalers and the products
needed. retailers, reach the market.
respectively.

DISTRIBUTION STRATEGIES USED BY COMPANIES

1. Intensive Distribution. Firms place products in as many outlets as possible, be it in supermarkets,
department stores, convenience stores, hotels and hospitals, among others. This makes the products
accessible and available to all consumers anytime, anywhere.
2. Selective Distribution. Products are distributed in a limited number of outlets. Companies develop close
business relationship with selected channels.

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 ABM 006: PRINCIPLES OF MARKETING
Teachers’ Guide Module #17

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: __________________________________________ Date: ________________

3. Exclusive Distribution. An outlet is given exclusive rights to carry the manufacturer’s products within a
specific territory. This set-up is not convenient to the customers because they have to go to that
particular outlet where products are distributed or being sold. Here, competition is less.

WHOLESALING AND RETAILING

Wholesaling – involves transaction where products Retailing – the process of selling products to the end
are sold for resale. users. It is the last stage in the channel of
distribution.
o Wholesaler – person involved in wholesaling o Retailer – person involved in retailing
FUNCTIONS OF WHOLESALERS: IMPORTANCE OF RETAILING:
1. They buy in large quantities and break these into 1. It helps the economy by creating jobs or
smaller numbers for resale to retailers. providing employment.
2. They provide product knowledge to the retailers 2. Majority of the market patronizes retail
as they promote and sell the products. purchases.
3. They provide the manufacturer the necessary 3. It serves as links between the wholesakers’
feedback or market information about his product. products and the customers.
4. They handle the storage of the products. 4. It sells products that end users can afford.
5. They carry the inventory of the manufacturer’s 5. Retail stores are commonly accessible to the
products. market.
6. They provide their own sales agents so that it
helps the manufacturer with minimizing
manpower cost.

CLASSIFICATION OF RETAILERS

- can be classified based on the amount of service they offer

1. Self-Service 2. Full-Servie 3. Limited-Service 4. Personal-Service

- used by sellers in - offer more choices of - retailers carry more - retailers provide
convenience stores specialty products shopping goods, personalized service to
providing more services therefore providing more consumers. Personal
to customers; thus, sales assistance for services and facilities
operating expenses are customers who need given to the customer
high which result in information about a build up goodwill and
higher product price product increase the volume of
sales, as well as profit

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 ABM 006: PRINCIPLES OF MARKETING
Teachers’ Guide Module #17

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: __________________________________________ Date: ________________

Activity 3: Skill Building (5 minutes)

How is the learning process so far? This activity will help you develop more your understanding of today’s
lesson. Have fun:)
Direction: Circle the correct answer.
1. The person who sells product which end users can afford
a. Retailers c. Capitalists
b. Wholesalers d. Distributors
2. The final channel in the distribution system
a. Retailing c. Manufacturing
b. Wholesaling d. Customers
3. The people responsible in creating new products
a. Retailers c. Investors
b. Wholesalers d. Manufacturers
4. Distribution channel that consists of several intermediaries
a. Zero-level channel c. Two-level channel
b. One-level channel d. Three-level channel
5. A person or entity that represents the company to the market and vice versa
a. Manufacturers c. Intermediaries
b. Investors d. Suppliers
6. A channel level where products pass through either wholesaler or retailer
a. Zero-level channel c. Two-level channel
b. One-level channel d. Three-level channel
7. A type of retail service used by sellers of convenience stores
a. Self-service retail c. Limited-service retail
b. Full-service retail d. Personal-service retail

You may check your answer by referring to Key to Corrections at the last page

Activity 4: What I Know Chart, part 2 (2 mins)

Now, this time, answer the question in Activity 1 based on what you learn after studying your notes. This is to
check whether you have fully understood our lesson.
Questions: What I Learned
1. What is the difference between
wholesaling and retailing?

2. Why is distribution channel

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 ABM 006: PRINCIPLES OF MARKETING
Teachers’ Guide Module #17

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: __________________________________________ Date: ________________

important?

Activity 5: Check for Understanding (5 minutes)

This time, let us check your understanding by answering this test. Enjoy! ☺
A. Direction: Identify the distribution strategy used by these companies. Choose from Intensive
Distribution, Selective Distribution or Exclusive Distribution.

______________________________1. Jollibee chicken joy

______________________________2. Ethyl alcohol
______________________________3. Avon products
______________________________4. Rebisco biscuits
______________________________5. Watson products

B. List down 5 Wholesalers and 5 Retailers in your place

Wholesalers Retailers
________________________________ ________________________________
________________________________ ________________________________
________________________________ ________________________________
________________________________ ________________________________
________________________________ ________________________________

You may check your answer by referring to Key to Corrections at the last page

C. LESSON WRAP-UP
A. Work Tracker
You are done with this session! Let’s track your progress. Shade the session number you just completed to
see if how much work you have accomplished and how much work there is left to do.

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 ABM 006: PRINCIPLES OF MARKETING
Teachers’ Guide Module #17

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: __________________________________________ Date: ________________

B. Think About Your Learning

Fantastic, you nearly finish today’s session. But before that, I want you to honestly assess your learnings for
today’s lesson. This will tell you to go back or move forward to the next lesson.

Place a 
Description Explanation
below
Clear I got it!
I understand it for the most part but a
Cloudy
few things are still unclear.
Confusing I don’t get it at all

FAQs
Q: What is e-commerce?
A: Ecommerce, also known as electronic commerce or internet commerce, refers to the buying
and selling of goods or services using the internet, and the transfer of money and data to execute
these transactions. Ecommerce is often used to refer to the sale of physical products online, but
it can also describe any kind of commercial transaction that is facilitated through the internet.

Q: How does an online store work?

A: An online store is a website through which customers place orders. It may represent a small
local store, a major retailer, an e-commerce store or an individual who sells projects through a
third-party site, such as eBay. To operate an online store, you'll need a product catalog, a
shopping cart and other items.

Q: What is the largest distribution channel in the Philippines?

A: Tao Community's Distribution and Marketing network is the largest in the Philippines. By virtue
of this distribution roster, TAO can link your product to over 400,000 retails outlets in the country.
TAO provides unique opportunities to partners by creating links to different market segments.

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 ABM 006: PRINCIPLES OF MARKETING
Teachers’ Guide Module #17

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: __________________________________________ Date: ________________

KEY TO CORRECTIONS

Answers to Lesson Review/Preview:

PRODUCT and PRICE

Answers to Skill Building:

1. A
2. A
3. D
4. D
5. C
6. B
7. A

Answers to Check for Understanding:

A.
1. Selective Distribution
2. Intensive Distribution
3. Exclusive Distribution
4. Intensive Distribution
5. Selective Distribution

B. Answers vary

TEACHER-LED ACTIVITIES
1. Check and grade collected SAS and other input from students.
2. Schedule phone calls/virtual calls/virtual chats to individual students or small groups of students to
monitor work, provide guidance, answer questions, and check understanding.

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