Business Management

Topics: Marketing, Supply chain management, Retailing Pages: 4 (755 words) Published: April 16, 2013

4.6 Place

Teacher: Pak Bowo



Marketing is NOT just promotion. PLACE is an important, integrated component in the marketing mix.

PLACE: a Marketing Mix essential
How is the product going to get to the consumer? • Place in the marketing mix is not so much concerned with a physical location: e.g. where should we put our retail shop? who will we use to retail our product? • Place is rather a distribution strategy that determines how a customer will receive the product.

• This is a decision that is linked to marketing objectives and fully integrated into the marketing mix

Think of PLACE as: "Getting the right product, to the right customers, at the right price in the right place and at the right time.“ - The Chartered Institute of Management -

Place must be considered carefully!
The demise of the video store is not a reflection on the product - people still love to rent films to watch at home. Watch the following video and explain just how influential PLACE decisions have been in this marketing mix?

Video: blockbuster offers glimpse of movie renting past.

Channels of Distribution
Channels of Distribution: The chain of intermediaries a product passes through from producer to the final consumer. The choice of distribution channel is important for several reasons:

1. Consumers may need access to a firm's products to allow them to try before they buy, to make purchasing easy and to allow, if necessary, for the return of goods. 2. Manufacturers need outlets for their products that give as wide a market coverage as possible, but with the desired image of the product appropriately promoted. 3. Retailers are firms that sell goods to the final consumer. Retailers will demand a mark-up to cover their costs and make a profit, so, if price is very important, using few or no intermediaries would be an advantage

The fourth P: Place
Place decisions are concerned with how products should pass from manufacturer to the...
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