For a company to comprehend and understand the needs of its consumers and determine the best route to put its product in a market space accessible to potential buyers, they have to determine and understand the method of distribution used. An excellent marketing place strategy enables the service and products to stand out, differentiating the company from the rest of the competition. Companies must define the distribution channels that will suit their business model.
Goods and services pass through a chain of intermediaries to reach the final consumer. These intermediaries act as the distribution channels and form an integral part of place marketing strategies. Place marketing examples of distribution channels include retailers, wholesalers, distributors, and online platforms. Broadly, these examples are categorized into two main types; direct sales and intermediaries.
The next section expounds more on place marketing examples by exploring specific examples of physical stores, wholesalers, direct sales, and sales representatives.
Physical Stores
Physical stores are physical retail spaces that enable sellers to display and sell their products to customers. For example, sellers can rent spaces inside malls or shopping centers. Alternatively, they can construct free-standing structures or establish a stand-alone store near events, residences, public areas, and museums. A typical physical store employs workers to guide, help, and engage with shoppers. Physical stores offer customers a range of services and products in strategic retail locations. This distribution channel offers front-end access to products, the most common method used in shopping malls and many other stores that serve consumers. Companies design their physical stores depending on the nature of the products sold, the location of the business, the clientele, and even the size of the business entity.
Boardwalk stores, Wildwood, New Jersey
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Wholesale
Wholesale is an indirect approach to distributing goods that employs a third party to distribute goods and services. It involves the acquisition of goods from producers and manufacturers and subsequently holding them in distribution centers from where they sell to retailers. Wholesalers such as Sam's Club and Costco act as a link between the producer and the final consumer. A key advantage of wholesale distribution is brand awareness. Selling a product through multiple retail stores or an e-commerce setup ensures many consumers will access it, thus creating more brand awareness. Wholesalers also have the option of drop shipping, which entails directly shipping from a manufacturer to the consumer without having inventory.
Narita Wholesale Market is an example of place marketing utilizing wholesale to distribute goods
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Direct Sales
Direct Sales entails selling products directly to end users without distributors or intermediaries. Instead of a retail environment, direct sales occur at non-store locations such as online, workplaces, or homes. Businesses that employ this distribution channel avoid intermediaries by relying on salespeople. These salespeople engage potential customers and attempt to convince them to purchase the product. The direct marketing of goods can be conducted through telemarketing or mail offerings. As such, the internet and telephone are valuable tools for direct sales. Telemarketing and mail offerings remain effective direct sales strategies despite increased consumer reports of scams, frauds, and intrusive sales techniques.
Sales Representative
A sales representative is an organization or a business professional who interacts with potential customers and sells products on behalf of wholesalers and manufacturers. As the point of contact between the business and its potential customers, sales representatives communicate the benefits of the company's product and its value to prospective clients. The main objective of soliciting these professionals is to conduct sales on-site and drive transactions. For example, if a neighbor invites those next door to a party where she is selling kitchen items, she is acting as a sales representative for the company producing the kitchen items.
The scope of a sales representative is broad because there is a wide range of duties and responsibilities attached to this position. They are expected to have a deep understanding of the brand, allowing them to highlight how the product features address customer needs. Furthermore, they identify market leads, recognize potential customers, and answer questions related to the product. They also must collaborate with professionals in different sectors, retain a contact list to maintain customer relationships, negotiate prices, and formulate sales agreements. In addition, a sales representative contacts new and existing clients to discuss needs and offer solutions.
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FAQs
What are some examples of place strategy in marketing? Examples of place strategy in marketing include using wholesale centers, retail outlets, physical stores or online platforms as the channels for product placement and trade promotions.
What are place market strategies? ›
Companies come up with a place strategy by determining where their target market shops. For example, a cookbook publisher can place their products in a bookstore to reach customers who are looking for books, but also in a kitchenware store to reach customers interested in cooking.
What is the importance of place in marketing plan? ›
This lesson revealed that place in marketing mix plays a major role in the distribution and flow of goods, because it ensures that the product is in the right place at the right time. Without proper product placement, customers are likely to look elsewhere for what they need or desire.
What is the meaning and importance of place in marketing? ›
The answer to 'What is 'place' in the marketing mix? ' is that it's the aspect of selling a product that relates to where and how a company delivers a product to consumers. This includes the distribution channels a company uses, how they transport and store goods and a product's placement within a retail outlet.
What's a good example of place based marketing? ›
Your place-based ad might relate to nutrition or health, capturing your audience's attention in a place where they'll have a significant amount of dwell time. Another example might be a drink company that utilized place-based ads near a bar or a neighborhood with a high concentration of nightlife establishments.
What is important to your place strategy? ›
The place strategy in marketing mix is all about finding best way to distribute and retail your offerings. Firstly, place strategy helps us take important decisions regarding the location of retail. Secondly, it also helps us decide the format of retail, channel of distribution and type of exclusivity of the retail.
What is an example of a location marketing strategy? ›
For example, car dealerships might create a boundary around a competitor's lot. When a target consumer comes within that boundary, they will be sent an offer to users that encourages them to visit the other dealer.
What is place decision in marketing? ›
Place (Distribution) decision involves determining the right place (transportation), right time(warehousing) and right person (channel member)to ensure smooth flow of goods. Demand-oriented distribution functions refer to primary operations of distribution channels.
What are place management strategies? ›
There are of course numerous definitions of place management, but normally the place management process is concerned by the task at hand (e.g. high street vitality and viability, place development, place promotion) and involves a specific method of governance that includes citizen activation and participation, ...
What is the significance of market place? ›
Some of the goals of the marketplace are: Bringing buyers and sellers together: The marketplace aims to be a neutral space where customers, or buyers, want to purchase a commodity or service and vendors, or sellers, who possess the commodity or service, want to sell.
The place refers to the location where customers can purchase the product or service and how they'll access it. It includes distribution channels, logistics, market coverage, and levels of service. You want to ensure that the product is easily accessible and available at the right time and place, for the right people.
What is marketing strategy in terms of place? ›
In other words, "place" in marketing is all about how and where you can get a product or service. It involves deciding where to sell it, how to get it to customers, and making sure it's available when and where people want it.
What is an example of place in marketing? ›
What Are Some Examples of the 4 Ps of Marketing? Place refers to where consumers buy your product, or where they discover it. Today's consumers may learn about products and buy them online, through a smartphone app, at retail locations, or through a sales professional.
What is the place marketing process? ›
Place marketing is traditionally concerned with the development and subsequent promotion of a place product, as well as the construction of a sellable place image that can highlight local difference and enhance a place's competitive position (Page and Hardyman, 1996).
What is place with example? ›
/pleɪs/ A place is a position, an area, a spot, or a space. Texas is a place in the United States, and your seat at dinner is your place at the table.
What is an example of a position strategy in marketing? ›
For example, a car manufacturer may emphasize the practicality of its cars, positioning them as quality vehicles for the average consumer instead of costly status symbols. Likewise, a fast food chain may position itself as a palace to get inexpensive and quick meals, unlike high-end restaurants.
What is an example of a strategic location? ›
The mountain commands everything in its sight and was therefore a strategic location for both sides during the war. The town remained prosperous through trade and its strategic location. Because of its strategic location near the mouth of the river, the town gradually increased in importance.
