Place Strategy in Marketing: Examples & Definition

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  • 0:01 What Is Place Strategy…
  • 0:25 Distribution Channels…
  • 2:05 The Dynamic Business…
  • 2:50 Lesson Summary
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Lesson Transcript
Instructor: James Carnrite

James has a masters degree in IT Management.

Place strategy in marketing incorporates the distribution by which a company puts its products and services in front of the consumers. A short quiz at the end will test your understanding.

What is Place Strategy in Marketing?

Place strategy plays a fundamental role in the marketing mix of a product or service. Place strategy outlines how and where a company will place its products and services in an attempt to gain market share and consumer purchases. This component of the 4Ps is sometimes referred to as the distribution strategy and may include stores, both physical and online, and any other means by which the company can reach customers.

Distribution Channels and Examples

To determine which distribution method is used, the company must understand the needs of the consumer and determine which avenue provides the best ability to put the product or service in front of the potential buyer. Here you can see the main distribution channels we commonly see in the marketplace.

Distribution Channels in Place Strategy

Physical stores offer a full range of products and services to the customer through a front-end retail location. Nearly everyone can relate to this method, which can be seen at the local shopping mall and the variety of stores and boutiques available to fit any consumer desire.

A wholesale approach considers utilizing third-party vendors to offer and distribute the products or services to the customers. Generally, we see this type of distribution for bulk items, such as farm supplies or restaurant equipment. Marketing professionals noticed an interest in this style of distribution, and we see more consumer wholesale companies in the marketplace, such as Sam's Club and Costco, which are membership driven.

The direct sales method utilizes internal sales groups that reach potential customers through direct mail offerings, telemarketing, or online portals. Typically, these are used for your unique products or services that have a specific target audience and require intricate customer details. Often, we see this approach for timeshares, special offerings, and companies with lower distribution budgets.

A sales representative approach deploys field sales staff, who travel to on-site locations to facilitate customer purchases. This is a distribution channel with a broad scope and includes everything from your corporate software purchases to your neighbor's Avon representative.

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