Place: Introduction

• When used in the context of the marketing mix place refers to how and where the product is sold to the consumer
• During the process of determining place the business has to decide:
  1. How the product reaches the consumer i.e. the channel of distribution
  2. The actual geographical location where the product is sold
• As with other elements of the marketing mix prices
• For example it would hardly make sense to sell high end jewelry at a growth point or in low income high density suburbs
• Also if the market is segmented geographically it would be easier to implement price discrimination on products
• For example customers in higher end markets might have to pay more for a product
• It would also be possible to package products differently for example selling diamond encrusted phones to rich customers
• While it is the same phone with the same functionality it will sell at a higher price
• When it comes to channels of distribution the business has to decide whether to sell directly to customers
• Or it could use Agents, Wholesalers and other intermediaries
• When products are sold through intermediaries the business might have to use channel support strategies such as
• Giving trade discounts to  traders
• Advertising at trade exhibitions such as the Harare Agricultural Show and the Zimbabwe International Trade Fair

To access more topics go to the O Level Business Notes