Place Strategies

Introduction

Place signifies the importance of getting products, to the target audience, at the right time, place and price. If the product is not available for the customer to buy at the right time and place the customer will look somewhere else. In this article we discuss place strategies.

Distribution Strategies

When a company decides to sell their products to their target market they can do this in many different ways. There are three options available.

1. Direct Distribution. A company may decide to sell the product direct to the customers. They will have decided to cut out the wholesaler/retailer so their target customer can purchase from them directly. The customer should benefit from lower prices and the manufacturer has more control over the distribution of their product. Dell computers is one example of direct distribution.
2. Indirect distribution. A company may decide that they will use an intermediary to help them distribute the product. The intermediary that they use may have a good reputation in selling the product and have experience in doing so. For example Apple use many retailers to help them sell their phone because of their experience in selling smart phones.

Indirect Distribution Strategies

If a company decides that they want to adopt an indirect distribution strategy, they must select retailers to suit their product types. There are three types of strategies that a company will consider.

1. Intensive distribution - If the product is of low value and the company needs high turnover in order to make enough money then  intensive distribution is ideal. If you think about Coca - Cola , this soft drink is low value but needs to have an intensive distribution strategy in order to sell the product. Within a city centre Coca-Cola is no more then 5 minutes away from you because of intensive distribution.
2. Selective Distribution - If the product that the company wants to sell is mid value for example a mobile phone, the firm will select the retailer they wish to sell their product very carefully. This selection method will be based on their experience, the customer service they offer to their customers and their overall reputation.
3. Exclusive distribution - If the product is of high value for example an exclusive watch such as a Rolex the company will pick a very small number of retailers to stock the product . These could be retailers with a reputation of quality for example Harrods in London. Distributing to a retailer such as Harrods will help the company develop an exclusive image for their product.

Summary

Getting the product distributed to the right place and the right time is crucial for any firm. The company must pick the correct distribution strategy that will help them reach their objectives. The correct distribution strategy should work hand in hand with the other elements of the marketing mix.