Place refers to how a product is distributed to reach target customers. Key considerations for place include establishing warehouses and distribution centers, managing inventory levels, and selecting channels of distribution. Distribution decisions involve selecting locations, determining market coverage, choosing channel members, and setting logistics and service levels. The objective is to make products available to customers at the right place and time in the required quantities at minimum cost while satisfying customers. Marketing channels refer to the pathways through which products reach consumers. Distribution can be direct from producer to consumer or indirect through intermediaries like wholesalers or retailers. Producers must decide on the appropriate channel structure and relationships.

1. PLACE
A TOOLS OF
MARKETING MIX
VIKASH
srivastav

2. Marketing mix ;
place
• How you will get the product where it belongs?
• How will you manage inventory ?
• How warehouse operation will be carried out and if distribution
centres will be established ?
• When you consider place , you also must consider where you percive
the product will be sell best.
Place : in the marketing sense refer to the Distribution of
the product.
Place consideration involve decision that effect ;
2

3. ╸ • Place (or Placement ) decisions are those associated with channels
of distributions that serve as the means for getting the product to the
Target Customers.
╸ Channel Distribution System Performs :
1. Transactional
2. Logistical
3. Facilitating functions
╸ Distribution Decisions include Location , Market Coverage, Channe
member Selection, Logistics and Levels of Service.
3
Marketing Mix : Place

4. “
The objective is to make product
available in the right place at the
right time in the right quantites
at least cost
4
Marketing
mix: place

5. Objectives of
Distribution
5
• Movement of goods:- The major objective of distribution is to effectively move the product from the place of
production to the place of consumption through the marketing channel system. Products move from
manufacture to wholesaler to retailer and finally moved to consumer from retailer.
• Safety of product:- Distribution facilities safety of the product. Distribution makes the channel members
responsible to the proper storage and handling of the product, so that the product reaches to the buyer in
proper condition.
• Cost reduction:- Distribution involves several channel members. They assist in delivering goods and services
to the end consumer. So, manufacture do not need to reach to the door step of every consumer. Distribution
helps in minimizing the cost of manufacture's transportation and travelling
• Availability of goods: Effective distribution channels facilities easy availability of goods. Distribution channel
also helps consumers to assort the required products. Any product demanded by consumers becomes
available at any place and any time. Different products in different countries and continents are assorted at the
same place by channel members. It ensures right goods at reasonable price at right place
• Customer satisfaction:- Distribution is often termed as other halves of marketing. It fulfill the customer's
satisfaction by delivering right product at the right place at right time. Thus, distribution channel sets objectives
to render crucial services of regular supply of goods.

6. Marketing Channel
Strategy
Place:-The fourth “P” in the Marketing Mix has been largely neglected
But this is changing....
Marketing Channel Strategy Has Become Critically Important For Most
Businesses

7. Marketing Channel
Strategyis Growing in
Importance.Why?
Five Reasons:-
(1) Search for Sustainable Competitive Advantage
(2) Growing Power of Retailers in Marketing Channels
(3) The Need to Reduce Distribution Costs
(4) The Increased Role and Power of Technology
(5) The New Stress on Growth
7

8.  A competitive advantage that cannot be quickly and easily copied by competitors
 Superior Marketing Channel Strategy is More Difficult for
Competitors to Copy Because
1. The Search for
Sustainable
Competitive
Advantage
8
 Channel Strategy is Long Term.
 Requires a Channel Structure.
 Depends on Relationships and
People Requires Effective.
 Interorganizational Management.

9. 2.Growing Power of
Retailers in
Marketing Channels
9
Retailers:-
 Are Growing Larger
 Enjoy Substantial Channel Power
 Act as Buying Agents for Customers
 Often Operate on Low Price / Low
Margin Model
 Operate in Saturated Markets and Fight for
Market Share

10. “
10
3.The Need to
Reduce
Distribution Costs
Distribution
Costs Often
Account for a
Significant
Percentage of
the Final Price
of Products

11. “╸ Firms that make
effective use of these
technologies in their
channel strategy can
gain a substantial
competitive advantage
11
4.Increasing
Role and
Usefulness of
Technology

12. “5.The New Stress on
Growth Strategy”
12

13. Place Decisions Are an
Important Part of
Marketing Strategy
13
PLACE
OBJECTIVE
Customer service
level desired
TYPE OF
CHANNEL
Direct Indirect
Inventory level, transportation
arrangement , facilities needed
,information technology needed
How to manage channel
relationship
Middleman needed
(many type)
Degree of market
exposure desire

14. Marketing
Channels:-
Most Producers do not sell their goods directly to the Final Users!
Marketing Channels ;are sets of interdependent organizations participating in the
process of making a product or service available for use or consumption.
They are set of pathways a product or service follows after production, Culminating in
Purchase & Consumption by the final end user.
• The importance of Channels : In the United States, channel members collectively have
earned margins that account for 30 per cent to 50 per cent of the ultimate selling price.
14

15. Channel System May Be Direct
or Indirect
15
Greater Control
Lower Cost
Internet Makes Direct
Distribution Easier
Direct Contact with
Customer Needs
Quicker Response or
Change in Marketing Mix
Some reason
For Choosing
Direct
Channels

16. Factors Related to the
Use ofDirect
Distribution
– an aggressive personal selling effort is
required and/or when customers need special
technical service
– the product is primarily a service rather than a
physical good
– when working with middlemen would make it
difficult to
╸ maintain control of the marketing mix
– the producer can perform marketing functions
more efficiently (economically) by itself
16
Direct
(producer to
customer)
distribution is
more common
when:
Manufacturer
C
O
N
S
U
M
E
R

17. Indirect
Distribution
 Goods may move through a set of intermediaries
 Most FMCG companies follow this route
 The intermediary has a far better reach thanthe company
 The cost of operations of an intermediary likea wholesaler / retailer is
shared with many businesses.

18. 18
Indirect Distribution
Manufacturer
Manufacturer
Retailer
End User
Retailer
End User
Distributor/ wholesaler
Two levelOne level
Manufacturer
Retailer
Distributor/ wholesaler
End User
Agent
Third level

19. Channel level
19

20. Product Flow
The movement of the product from manufacturer through all parties who take physical
possession
Negotiation Flow
Interplay of buying/selling tasks associated with title transfer
Ownership Flow
Movement of title of the product
Information Flow Information to and from the manufacturer
Promotion Flow ;-Flow of persuasive communication (advertising, personal selling, etc.)
Channel flow-;

21. MarketingChannel
Systems ;
21
1 2 3

22. Vertical Marketing
System
22
 Various parties like producers, wholesalers and retailers act as a unified
system to avoid conflicts
 Improves operating efficiency and marketingeffectiveness
3types:
 Corporate:- combine production and distribute under single ownership
 Administered:-Co-ordinates distribution activities and Gains market power
by dominating a channel
 Contractual:-Independent producers, wholesalers and retailers operate on a
contract

23. Horizontal Marketing
System
 Two or more unrelated companies join together to pool resources and exploit an emerging
market opportunity.
 In-store banking in hotels, bigstores
 Retail outlets in petrolbunks
 Coffee Day outlets inairports 23

24. Limiting Market
Exposure
24
Producer
Wholesaler
Retailer Retailer Retailer
HorizontalArrangements
Vertical
Arrange
ments

25. “Multi-channel Distribution
25
 Company uses different channels to reach /
same or different market segments
 Most FMCG companies have separate networks
for retail market and institutions
 Pharma companies may use different
channels to reach doctors, chemists and
hospitals

26. “
Multi-channel
distribution

27. 27

28. push & pull strategy
 Push Strategy;
╸ Coca cola is using Push strategy in which they use its sales force and trade promotion
money to induce intermediaries to carry, promote and sell the product to end users i.e.
consumers.
For example-as coca cola is giving free pet bottles and other trade schemes to
distributors, agency owners and retailers.
 PULL STRATEGY;
╸ Coca-cola is also using Pull strategy in which they are using advertising and promotion to
persuade consumers to ask intermediaries for the company brand product by this way coca
cola inducing customer to order it from shopkeeper.
╸ For example– Coca cola is using flanges, display racks, tier racks, standees, mobile
hangers and visicooler brand strips.
28

30. “
30
EXAMPLE

31. 31
THANK
YOU

32. ANY QUESTION
SUBMITTED BY -;
VIKASH KUMAR SRIVASTAV
TO,
SHUBHAM AGGARWAL