place- marketing Flashcards
what is place all about
place is where buyers and sellers meet in exchange for payment in return for goods and services
- consider where sell
- and how prodducts are distributed to consumers
this helps business establish brand image
why is place important- hargan daz
allows businesses to present and establish the image they want to promote to customers e.g. haagen dazs , only used to stock in harrords/ covent garden cafe’s, then moved to supermarkets, but allowed them to be seen as a luxury ice cream brand and price their products accordingly - premium prices as consumers believe its worth a higher orice
- other methods such as place on shelves in supermarkets- often manufactuers give discounts to retailers if givrn pride of place on shelves
internet marketing - what is it
this is becoming increasingly used by businesses to allow increased access internationally selling products to new markets without the need for phsycial stores, making it much chepaer and able to generate a lot more sales, making higher profits
e.g. click and collevct
able to compete against larger rivels- benefit from economies of scale
although.. can be issues such as fraud and non- delivery
e.g. amazon
types of distribution channels
use of a wholesaler- the use of a wholesaler is becoming less common although smaller businesses may still benefit. wholesalers buy in large quantitites from maufactuers to benefit from economies of scale, and businesses that dont want to buy in such large quantities can buy from a wholesaler to avoid having lots of stock to store and sell, when this isnt always possible
manufactuer to retailer- this is commonly used in supermakrets where can buy in bulk and benefit from economies of scale, this has been more possible due to technology such as EPOS decreasing need for wholesalers
manufactuers to customers- can buy at reduced prices as there is no middle man costs, often online purchases such as books, attracts customers due to comeptitive pricing and conveninence
multi distrubution channels
where businesses adopt multiple ways that customers can access products e.g. apple- amazon, online website, in stores, in diff retailers- allows access more markets, more customers - maximise advantages of each
