Marketing Mix ‘Place’
Place refers not only the location in which products/services
are offered, but also channels of distribution through which
products/services move from producer/supplier to end user
and the methods used to achieve this. (Stokes, 1997)
Ensure that products and services are available to target
customers in the ‘right place’ and at the ‘right time’(CIM,
Equivalent to physical distribution channel or logistic in
Role and importance of place in marketing
• Product and services need to be available in the right:-
with the right advice, installation procedures and after
Scenarios: stock – out of/too much, damage in transit,
direct delivery by competitors, warehousing,
distribution and delivery too high
• A heightened and changed role for place – development
of new approaches and techniques:
Marketing Fundamentals - PLACE 1 • Cost of distribution/logistics - potential for savings,
30% or more of total product costs.
• Potential for competitive advantage – effective
distribution and logistics customer satisfaction, effect on
sales and market share.
• Distributing through company’s own sales outlets.
• Selling through franchised outlets.
• Using the services of manufacturer’s agents to market the
product through specialised or non-specialised
wholesalers and/or retailers.
• Distributing through mail or parcel delivery services on
the basis of orders from catalogues or coupon
advertisement placed in the mass media.
• Selling through the Internet.
Some considerations for distribution :
The maintenance of distribution outlets.
The position of products on the shelves- in front or at
the back, at eye level, at the top or the bottom, etc.
The extent of provision of after sales service/technical
Marketing Fundamentals - PLACE 2 The size and physical set up of retail units (Small
shops / corner shops/ developed – retail chains/
supermarkets/ hyper markets etc).
Individuals or organizations that together ensure the flow of
products and services from producer to customers
Elements of channel of distribution :
• Supplier/s – manufacturer or marketer
• Intermediaries – retailer
• Outward flows - goods and services
• Inward flows – payments and information
Marketing Fundamentals - PLACE 3 M =Manufacturer C = Consumer (end users) R =
Retailer (directly to final users) W=Wholesaler (Buys from
producers or their agents and then resell to retailers)
• Longer the channel, lesser the control of marketer
• Each channel would wish to make a profit – therefore
final prices increased or profit margins at each level
• Decreased, therefore shorter the channel the better
Advantages of using intermediaries in distributing products
• Reduced investment – shift amount of funds tied in
stocks, minimize investment on premises, transport,
systems and other distribution infrastructure.
• Custom in the industry
• Economies of scale – retailer or distributor selling more
than one manufacturer’s products spreads distribution
• Intermediaries control customer contact
• Intermediary has superior skills, expertise and
• Too many customers for marketer to reach
Marketing Fundamentals - PLACE 4 • Transactional efficiency – consolidating a no. of
producers’ products in one place, cuts down no. of
• Loss of contact with market place – reliant on
intermediaries on info about developments
• Les control over marketing methods and effort