 PLACE

DECISION…
IN MARKETING MANAGEMENT
MEANING..
Distribution means using external
and/or internal sources for effective
movement of goods and services and
performing various activities like
transport, warehousing, storage,
inventory management, packaging to
achieve marketing goals of the firm.
 PLACEDECISION
Effective distribution creates time, place
and possession utilities in products Place decision involves determining the
and delivers high level of customer right place (transportation), right time
(warehousing) and right person (channel
satisfaction at less cost.. member) to ensure smooth flow of goods.

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 PURPOSE..
 involves determining the right place, right time and right
person...

Marketing objectives cannot be achieved

unless manufactured goods are
transferred to ultimate consumers. It is
important to decide how this movement of
goods will take place..
Decision involves determining the
right place (transportation), right time
(warehousing) and right person
(channel member)to ensure smooth
flow of goods.
Hence, understanding of distribution
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 CHANNELALTERNATIVES...
 Channel alternatives are the different ways that a company can distribute its
products and services. Major channel alternatives can include direct marketing,
selective distribution, and exclusive distribution. While identifying major
alternatives, it is important to recognize that the most effective Channel Strategy
rests on a Channel design that..
1. Is customer-focused
2. Delivers a superior customer experience
3. Provides an integrated customer view
4. Uses Channel Insights to enable 1:1 marketing
5. Builds relationships through loyalty programs

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  FACTORSAFFECTING CHANNELS CHOICE…
 It is important to understand what channels your customers are likely to use most. There are a number
of factors to take into account, including:

• 1. Age • 3. Personality
Many companies decide channel split by looking at Another perspective is to examine how the personality types
customer demographics, particularly age. Lots of research of customers might drive their preferences for customer
indicates Generation Y is forsaking telephone service channels. Extroverts, with confident and outgoing
communications in favor of social media and real-time personalities, will be happier getting on the phone and
messaging such as web chat and text.. might even enjoy some chitchat and putting their point
across to a contact centre agent.
• 2. Context
In
theanphone,
emergency where of
irrespective weour
need a fast answer,
demographic we pick up•
group.
4. Type ofit business
Obviously, can be difficult to analyze your customer base
However, if you are then told you’ll be on hold for 15 by personality without asking intrusive questions. However,
minutes and chat is available, you may hang up and switch if you look at the type of business you are, it is possible to
to this channel. build a picture of the sort of customers you’ll attract.

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 CHANNEL DESIGN AND
CHANNEL MANAGEMENT
DECISIONS..
 Channel design decisions are a critical part of a company's marketing and
distribution strategy. These decisions involve determining how products or
services will reach the target customers..
 Channel Management is widely used in sales marketing parlance. It is defined as
a process where the company develops various marketing techniques as well as
sales strategies to reach the widest possible customer base..

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 CHANNEL DESIGNAND CHANNEL MANAGEMENT
DECISIONS..
 CHANNEL DESIGN..
 Channel design is the strategic process that
commercial organizations use to balance
resources across direct and indirect channels or
routes to market. Direct channels typically
include field sellers and e-commerce platforms,
while indirect channels can include a mix of
partners, distributors and marketplaces.
 Channel design is the process of identifying and
selecting the most effective marketing channels
to reach target customers and achieve
company objectives. The goal of channel design
is to create a system that optimizes customer
engagement and minimizes costs.
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CHANNEL MANAGEMENT
DECISIONS..
 Channel management decisions involve the
process of selecting, managing, motivating, and
evaluating channel members to ensure the
effective and efficient distribution of products
or services.
 The term Channel Management is widely used in
sales marketing parlance. It is defined as a
process where the company develops various
marketing techniques as well as sales strategies
to the widest possible customer base.
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CHANNEL CONFLICT..
 Channel conflict occurs when brands interfere with their partners' ability to sell
and distribute products to customers.
 Channel conflict occurs when manufacturers (brands) disintermediate their channel partners, such
as distributors, retailers, dealers, and sales representatives, by selling their products directly
to consumers through general marketing methods and/or over the Internet.
 Type of channel conflicts-
 There are two types of channel conflicts..
 Vertical channel conflicts
Vertical conflict occurs when a manufacturer's action disrupts the supply chain. For example, a manufacturer who
normally distributes its products through retail would cause a vertical channel conflict if they start doing direct mail
and advertise directly to consumers.
 Horizontal channel conflicts
Horizontal conflict occurs among firms at the same level of the channel. For example, two franchises who open
two restaurants across the street from each other would be in a horizontal conflict or when one firm in a
distribution channel offers lower prices than the members of the distribution channel and therefore attract more
customers.

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  RETAILING

 The meaning of word Retail is ‘to break the bulk’.

 In the process of distribution, the products move from the manufactures to the final consumers
During this process several middlemen are involved and the retailers are the last one.

 So, “Retailing is selling final goods or services to final consumer for non business use”

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 Sorting Channels of communication
Holding Stocks

Functions of Retailing

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 .
TYPES OF RETAILERS
On the Basis of ownership

Independent Leased
Retail Chain Franchasing
Retailers Departments

On the Basis of Channel Used

Store Retailing Non Store Retailing

Discount stores
Tele-Marketing
Speciality Stores

Departmental Stores Vending Machines

Convenience Store (Kirana Stores) Tv Home Shopping
Combination Store(Food & Non Food Stores)
.
Conclusion
The place decision in marketing management requires a comprehensive understanding of
the target market, product characteristics, and available distribution channels. A well-
thought-out distribution strategy that aligns with the overall marketing objectives and
adapts to changing market dynamics is essential for achieving sustained success. Regular
monitoring and evaluation will help fine-tune the approach and ensure ongoing relevance
and effectiveness in reaching and satisfying the needs of the target audience
 ThankYou..

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