The Importance of

Marketing Mix - Place

By…

1.
2.
3.
4. K……. S…. (Roll No. 19)

[PGDBM – IISWBM 2011]

 Place matters for a business of any size.
This is the crucial part of the marketing mix.
 MAIN GOAL

Place (or its more common name “distribution”) is

about how a business gets its products to the customers
or consumers.
OBJECTIVES….

The objective of Distribution is clear..

To make products available in the right

place at the right time in the right
quantities.
What will we go through here after…

 The role of the place in the market.

 Factors to consider while deciding on Place

 The channel of distributions.

Role of Place in the marketing mix
 Place
 Productsget from manufacturer to customer
or consumer
 Places
that can be access by the customer or
consumer
 The more places to buy the product from the
easier it is to buy it.

The more the places the more the profit for the business.
Factors to consider while deciding on Place

 Avoid Competition…

If any one is an entrepreneur or just starting out his

business venture, he has to avoid setting up shop next to a
competitor of his.
His competition might already have a loyal customer base
and this could affect his sales.
He has to think out-of-the-box and select a location that
has enough space for his offerings.
Factors to consider while deciding on Marketing Mix – Place

 Visibility…

It’s always better to have an office on the main road

instead of behind a building on a deserted street of the
neighbourhood.
He has to pay more for the location but in the long run, the
visibility of his business increases and more and more
people will find out about his services and products.
Factors to consider while deciding on Marketing Mix – Place

 High Footfall…

He has to find out the density of traffic in the area where

he wants to set up his business in.

If people rarely visit the place for their purchasing

requirements, then even a good business plan wouldn’t be
sufficient to ensure growth.
Factors to consider while deciding on Marketing Mix – Place

 Accessibility…

He has to ensure that his business place is easily

accessible to potential customers to walk-in and enquire
about his offerings.

If the accessibility is difficult, nobody would make the

extra effort to reach him when there’s a similar business
that’s easily reachable.
Channel of Distributions…

 Where to sell the product

 How to get the products to consumers
 Through the 4 Channel of distribution
Channel of Distribution… 1
 Involves
 Manufacturers

 Consumers or Customers
The manufacturers selling directly to the consumers
(Food product like Bread or Plant & Machinery)

MANUFACTURER CUSTOMER
Channel of Distribution… 2
 Involves
 Manufacturers

 Retailer

 Consumers or Customers
The manufacturers sells the product the retailer then
the retailer sell it to the consumers (Furniture or
Jewelers or milk)

MANUFACTURER RETAILER CUSTOMER

Channel of Distribution… 3
 Involves
 Manufacturers

 Whole seller
 Retailer

 Consumers or Customers
The manufacturers sells the product the wholesaler
then the product goes to the retailer then the retailer
sell it to the consumers (Food Products)

MANUFACTURER WHOLE SELLER RETAILER CUSTOMER

 Channel of Distribution… 4
 Involves
 Manufacturers
 Agent
 Whole seller
 Retailer
 Consumers or Customers
The manufacturers sells the product to the Agent then
the product goes to the wholesaler then the product
goes to the retailer then the retailer sell it to the
consumers (Foreign Plant & Machinery)
MANUFACTURER AGENT WHOLE SELLER RETAILER CUSTOMER
Methods of Distribution…
Method of distribution Description
Department stores Large store , centre of town that sell wide
variety in products
Chain stores Two or more stores which have the same
brand
Discount stores Retail stores that has discount prices on
variety of products
Superstores New very large out-of-town stores
Supermarkets Retail grocery stores with dairy produce,
fresh meat and packaged food
Direct sales Products are sold directly from the
manufacturer to the consumer
Mail order Look through catalogue or magazine and
order via post.
Internet/e-commerce Look through internet or business website
and order also possible via phone and mail
The Values of E-commerce…

 In the Current Scenario this is the best selling of

the products online.
 Such as E-bay / Flipkart / Snapdeal / Shopclues
/ Amazon…
CONCLUSION

Businessmen often make the mistake of not

giving enough attention to the place or location
of their business, thinking that everything
would be a smooth sail just on the basis of their
pricing and product features. But it’s not so.
THANKING YOU