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Lecture 12

MARK301 Lecture Notes - Lecture 12: Mac Cosmetics, Cash Register, Direct Marketing

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Utku Akkoc

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Place Strategy
Place Strategy Goals
to make it as convenient and pleasant as possible for your target audience to perform the
behaviour, acquire any tangible objects, and receive any services
helpful in reducing access-related barriers (e.g. lack of transportation) and time-related barriers
(e.g. at work all day)
may want to do anything possible and within reason to make the competing behaviour (seem)
less convenient or appealing
10 Place Strategies
1. make the location closer
2. extend hours
3. be there at the point of decision making
4. make the location more appealing
5. overcome psychological barriers associated with place
6. be more accessible than the competition
7. make the competition more difficult or unpleasant
8. be where your target audience shops
9. be where your target audience hangs out
10. worth with existing distribution channels
Make the Location Closer
save your target audience a little time and travel
e.g. a dental office on wheels
e.g. exercise facilities at work sites
Extend Hours
offer target audience more options in terms of time and day of the week
e.g. 24 hour customer assistance
e.g. evening and weekend services
Be There at the Point of Decision Making
to influence the ‘just in time’ decision making
e.g. drug testing stations at festivals
e.g. products at the cash register
e.g. end-of-the-aisle displays
Make the Location more Appealing
enhancing the location - safety, decor, etc
e.g. comfortable waiting rooms, art in stairways
e.g. organized events
Overcome Psychological Barriers Associated with Place
reduce the psychological barriers of the place
e.g. pets of the net - instead of going to the shelter
e.g. text instant messaging instead of phone

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Be More Accessible than the Competition
the desired behaviour is made more accessible relative to the competition
e.g. vending machines, delivery, neighbourhood stores
Make the Competition more Difficult or Unpleasant
limiting access to competitive behaviours
e.g. banning smoking in buildings
e.g. non-GMO accreditation
Be Where your Target Audience Shops
provide products/ services where your target market already shops
improving access and appeal
e.g. Safeway pharmacy
Be Where your Target Audience Hangs Out
imagine places where your target audience hangs out where you might consider a distribution
channel for your product/service
e.g. booth at a trade show
Work With Existing Distribution Channels
leveraging existing distribution channels
e.g. return unwanted drugs to pharmacies
e.g. return makeup containers to Mac Cosmetics
distribution is about where to sell your products and how to get them there
supply chain - the businesses and services that supply a company with the raw materials it
needs to manufacture and move a product into customers’ hands
distribution channel - a set of interdependent organizations that help make a product or service
available for use by the consumer or business users
supplier —> firm —> consumer
supply chain distribution channel
Why Use Channels?
contributes to consumer value
offers the firm more than it can achieve on its own through the intermediaries:
scale of operation
reduce the number of necessary transactions - more efficiency
Contribute to Customer Value
Rental Car Company developed a new distribution strategy - off-airport, neighbourhood
locations that target at people who need a short-term replacement car, “we’ll pick you up”
Team Effort
physical distribution
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