Licensing is useful if the business wishes to quickly move into foreign countries, if manufacturing in a local market is too expensive then manufacturing could be undertaken overseas under licence, if shipping costs are too expensive or perhaps Marketing mix place market overseas would prefer a locally branded item.
One benefit of this method is that the company has complete control over the product, its image at all stages and the user experience. This reverse flow is what distinguishes this method from the others. In other words, it is how your product is bought and where it is bought.
Which of the above best represent you and your buyer behaviour when you are online? Surfers — an innovative minority who enjoy buying niche items and experiences based upon their own initiative.
View all posts by Tim Friesner Posted on. Licensing and franchising Some businesses are hothouses of ideas and innovation but they may lack expertise in terms of business and finance. The entire chain would begin with the seeds that the farmer sews and then plants.
Specialists — Since intermediaries are experts at what they do, they can perform the task better and more cost effectively than a company itself.
For this type of product, a specialist channel may be needed. A wholesaler will often take on some of the marketing responsibilities. Simplifiers — experienced Internet users who seek convenience and low prices.
Disposable goods or those of everyday use do not require too many special channels. The family eats the soup and they are the final consumers, as opposed to customers. A business customer will have different needs to a retail customer, for example a stationary distributor will sell printer paper in bulk directly to a large company but will sell a single ream sheets indirectly to the average householder via his local stationery store.
Marketing channels, or place in terms of the marketing mixare the means by which interdependent organizations move products or services from the producer to the person that purchases or consumes the product. This channel may become necessary for large producers who sell through hundreds of small retailers.
Development needs of every channel segment can be addressed separately, in a more targeted manner. Exclusive Distribution — A higher priced item may be sold at a single outlet.Place in the Marketing Mix.
As we've mentioned, place is the element of the marketing mix that ensures that the product is distributed and made conveniently available for the consumer -.
Marketing channels, or place in terms of the marketing mix, are the means by which interdependent organizations move products or services from the producer to the person that purchases or consumes the product. This is the basic role of distribution.
Marketing Mix – Place (Distribution Strategy) April 22, October 19, Mark Acutt Place refers to distribution or the methods and location you use for your products or services to be easily accessible to the target customers. Marketing Mix Place and Distribution strategy is about how effectively a firm gets its product to consumers and end users.
Firms can sells their products directly to the consumer (direct distribution) or through intermediaries (indirect distributions).
In this section we will take a look at 1) an introduction of place, 2) distribution channels and intermediaries, 3) making channel decisions, 4) managing distribution channels, 5) the impact of the marketing mix on place, and 6) an example of Dell Computers’ distribution strategy.Download