developing market strategy episode 3

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MAKE YOUR  DECISIONS ON THE  PLACE ELEMENT OF THE MARKETING MIX

 Place is concerned with  all the  decisions involved in getting the right product to  the target market's environment. A product isn't of much use  to  a customer  if  it's  not available where and when  it  is wanted,  or needed.

A product reaches  its  target  market through a channel  of  distribution  - any series of companies or  individuals,  from producer  to final user/consumer.  Sometimes a channel system  is quite short.  It may run directly from a  product to a  final user. This  is  especially common in  business  markets and  the marketing of  services.  Often  a  channel system is  more  complex  and  has  levels,  which  involves different
middlemen and specialists.

A zero-level  channel,  often called  a direct marketing channel, consists  of a manufacturer selling directly  to a consumer.  The  choice  of the  level  channel  to  use will  be based on  the competitive advantage, offered by  this  level.   For example,  an apple farmer may choose a zero-level  channel by  inviting the public  to come and pick their own apples at a  much lower price than buying it at a shop.

A two-level channel, for example, contains  two intermediaries.   In  consumer markets,  they are typically  a  wholesaler and a retailer.   In industrial  markets,  they could be sales agents and wholesalers  and  in  the service market, only sales agents could be necessary.

Distribution  channels  could also be  other than the abovementioned.  For example,  the Internet  is an  excellent distribution  channel  for selling information.   A comedian can also distribute his  services via  the TV to  his or  her target audience.

Part of the place decision  is also the  layout of a store or shop. Layout  is  the arrangement  and display  of  merchandise. A  retailer's success depends on a  well - designed floor display.  It should pull customers  into  the shop, make it easy for them  to locate merchandise, compare price, quality, and features, and ultimately buy.