Obviously there is a considerable difference in the quantity and cost of materials involved, but at least some of the price differential is due to the fact that the double-glazing firm employs salespeople who call on one customer at a time, and the windows are all tailor-made as one-off orders; the economies of scale involved in the tuna example ensure that price remains low, even when the cans are shipped across the world.
Place is also known as channel, distribution, or intermediary. It is the mechanism through which goods and/or services are moved from the manufacturer/ service provider to the user or consumer.
Physical Distribution The tasks involved in planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit (Kotler and Armstrong, 2001)
Structure of Marketing Channels Producer User User User Distr. Distr. Agent Industrial Goods Marketing Channels Producer Producer Provider Agent User
Distribution channels for services Service provider Channel Intermediaries Consumer or industrial customer Service provider Consumer or industrial customer
Characteristics of Services Intangibility - Lack of tangible assets which can be seen, touched, or smelled prior to purchase. Perishability - Inability of a service to be inventoried or stored. Inseparability - Simultaneous production and consumption of a service. Variability - Unwanted or random levels of service quality customers receive when they patronize a service firm.
Market Coverage INTENSIVE Penetration Mass Market Low Involvement Low Price SELECTIVE Penetr./Skimming Differentiated Av. Involvement Average Price EXCLUSIVE Skimming Niche High Involvement High Price
Place is simply where your fans buy your CD. You can also call it distribution.
There are many ways to distribute your CD.
Retail Probably the most difficult is retail (selling your CD in music stores). This is difficult for independent musicians or bands because you usually need to have a relationship with a distributor.
Online Isn't the Web wonderful? You can easily and cheaply set up a web page with your information, sample audio files, show dates, and how to order your CD.
In Person Whenever you perform, you should sell your CDs. You can mention that you are selling CDs and where to buy them while you are performing. It is easier if you have a friend to help you. This person can collect the money, hand out the CDs, etc. so you don't have to worry about it during a show.
In Home There is nothing wrong with telephone orders!