ZIMSEC O Level Business Studies Notes: Marketing: Place

  • 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

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