PLACE AND

PROMOTION
INTRODUCTION
Place, the third ‘P’ of the Marketing Mix

Place, The Third P Of The Marketing Mix

 Place
Ø At the right place, at the right time !

Ø Efficient and effective distribution = higher

profitability
What Channel of distribution Will
they use ?
Ø Definition : A distribution channel is the method a
company uses to get its products into the
marketplace for consumer use.
Ø Two types of distribution channels exist:

Direct
INDIRECT
 Indirect distribution

Ø The indirect channel is used by companies that do

not sell their goods directly to consumers.
 Direct distribution

Ø A direct distribution channel is where a company

sells its products directly to consumers.
 Distribution strategies
¨ There are 3 Common Distribution strategies :

Distribution
strategies

Intensive Selective Exclusive

distribution distribution distribution
 Intensive Distribution
Ø Distribution : To as many wholesalers and retailers
as possible.
Ø Convenience products : Chew gums, candy bars, soft
drinks, bread, cigarettes …

Ø Advantages :
o Available at as many outlets as possible.
o When and Where the customer wants it.
o Having a maximum exposure to the customers.
 Selective distribution
Ø Distribution : Small number of outlets are chosen to distribute the
product.
Ø Lies between the Intensive and the Exclusive distribution.
Ø Intermediaries = more than 1 BUT less than All.

Ø Advantages :
o Restricted number of channels in a geographical area to sell
products.
o Building up a good working relationship with selected channel
members.
o Good market coverage with more control and less costs.
 Selective distribution

Differents Models, features and prices in different outlets - > Different target markets.
 Exclusive Distribution
Ø Distribution : Limited number of dealers have the
right to distribute the product.

Ø Advantages :
o Stronger distributor selling support
o More control over : price, promotion, credit and
services.
o Improving the product’s image and allows for higher
markups.
Exclusive Distribution

ØControl the image of the

product

ØHelp the brand from

deterorating or loosing value

ØPrevent the product from

grey market.
 What to keep in mind :

ü Intensive distribution: Involves selling a product

in as many outlets as possible.
ü Selective distribution: involves selling a product at
select outlets in specific locations.
ü Exclusive distribution: involves selling a product
through one or very few outlets.
E-place
 E-place

ØOne of the biggest changes

to the Marketing mix
 E-place

Ø The internet is changing the way we sell our

products and services. That’s a fact.

Ø Consumers now use the internet to research and

purchase products/services online.
 E-place
¨ They are 3 main locations for E-commerce
transactions :

Seller site Buyer site Intermediary

Ø Clear online facts about the Product .

Ø The Internet has a geographically disperse market.

q The main benefit of the Internet is That niche

Product reach a wider audience

Ø There are low barriers

Ø Use e-commerce technology (for payment, shopping

software, etc)
 E-place strategies

• Location is important within our

place strategy. Online location
Location can refer to where links are
placed on other websites
• Ex : www.google.com

• The product can also be

customized to consumers needs
Customizaton • Ex : wwww.nike.com
Ø The immediate tangibility disappears

Ø The challenge for online retailers is to ensure that

the product is delivered to the consumer within a
reasonable time
Ø Not all products can be bought on line , though.
 Promotion

Ø Spread the word about your product or service to

customers, stakeholders and the broader public.
 Types of promotion
Types of promotion
Advertising:
Public relations
Sales promotion:
Personal selling:
Explanation
Any non personal paid form of
communication using any form of
mass media.
Involves developing positive
relationships with the organisation
media public. The art of good public
relations is not only to obtain
favorable publicity within the media,
but it is also involves being able to
handle successfully negative
attention.
Commonly used to obtain an increase
in sales short term. Could involve
using money off coupons or special
offers.
Selling a product service one to one
 Is the sending of publicity material
to a named person within an
organisation
Direct mail allows an organisation
to use their resources more
effectively by allowing them to
Direct Mail
send publicity material to a named
person within their target segment.
By personalising advertising,
response rates increase thus
increasing the chance of improving
sales.
Promoting and selling your services
online using various forms of online
Internet Marketing
marketing techniques such as banner
advertisments, videos or social media.
 Where you pay an organisation to
use your brand or logo. This
organisation usually has a high
profile so that you know that your
brand will be seen by a large
audience. Most common use of
sponsorship is with sporting
Sponsorship
events. The 2012 Olympics being
held in London is being sponsored
by a number of organisations such
as Mcdonalds and Coca-Cola as
the event will attract a world wide
audience that will run into
hundreds of millions.
 Message & Media Strategy

¨ What message are you trying to put accross to your

target audience?.
¨ How will you deliver that message?
¨ Will it be through the appropiate use of branding?
logos or slogan design?.

¨ . Companies with effective message strategies include:

Nike: Just do it.

Coca-Cola: The real thing
 Message & Media Strategy
Ø Media strategy refers to how the organisation
is going to deliver the message.

Ø Effective targeting of their media campaign

could save the company on valuable financial
resources.
Promotion through the Product life cycle

Ø Different promotional strategies should be employed for each

of the four stages of the product lifecycle to ensure the healthy
success and life of the product .