This element of the marketing mix shows that Costco Wholesale Corporation has expanded its product mix to a considerable degree of diversification.
Also called placement or distribution, this is the process and methods used to bring the product or service to the consumer.
In other words, it is how your product is bought and where it is bought.
This movement could be through a combination of intermediaries such as distributors, wholesalers and retailers. In addition, a newer method is the internet which itself is a marketplace now.
Through the use of the right place, a company can increase sales and maintain these over a longer period of time. In turn, this would mean a greater share of the market and increased revenues and profits.
Correct placement is a vital activity that is focused on reaching the right target audience at the right time. It focuses on where the business is located, where the target market is placed, how best to connect these two, how to store goods in the interim and how to eventually transport them.
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A distribution channel can be defined as the activities and processes required to move a product from the producer to the consumer. Also included in the channel are the intermediaries that are involved in this movement in any capacity. These intermediaries are third party companies that act as wholesalers, transporters, retailers and provide warehouse facilities.
Types of Distribution Channels There are four main types of distribution channels. Direct In this channel, the manufacturer directly provides the product to the consumer. In this instance, the business may own all elements of its distribution channel or sell through a specific retail location.
Internet sales and one on one meetings are also ways to sell directly to the consumer. One benefit of this method is that the company has complete control over the product, its image at all stages and the user experience. Indirect In this channel, a company will use an intermediary to sell a product to the consumer.
The company may sell to a wholesaler who further distributes to retail outlets. This may raise product costs since each intermediary will get their percentage of the profits.
This channel may become necessary for large producers who sell through hundreds of small retailers. Dual Distribution In this type of channel, a company may use a combination of direct and indirect selling.
The product may be sold directly to a consumer, while in other cases it may be sold through intermediaries. This type of channel may help reach more consumers but there may be the danger of channel conflict.
The user experience may vary and an inconsistent image for the product and a related service may begin to take hold.Holistic, More Accurate Marketing Mix Models – The marketing mix analysis within the environment of a commercial effectiveness model produces an approach that simultaneously measures the impact of all business drivers including traditional media, digital media, operations factors, consumer attitudes and external factors on offline .
Amazon’s marketing mix (4Ps) is designed to take advantage of the online nature of the company’s e-commerce attheheels.com components of this marketing mix enable competitiveness and international growth while attheheels.com Inc. innovates its services.
attheheels.com Inc.’s Products (Product Mix). Home Depot’s marketing mix (4Ps) effectively covers the various concerns in the company’s marketing plan. (Photo: Public Domain) The Home Depot’s marketing mix (4Ps) is a changing set of strategies for the company’s products, place/distribution, promotion, and prices, in response to changes in the home improvement retail market.
The marketing mix is useful in many different ways; this essay will analysing how the marketing mix is useful as a tool of analysis and how it will benefit the product. E. Jerome McCarthy, who was known as an American musketeer created this term ‘marketing mix’ in (van Waterschoot and van den.
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.
Product mix pricing strategies of ASICS shoes is product line pricing, which means that company sell different version of the ASICS shoes, for an example, running shoes, basketball shoes, football shoes and so on, different model of shoes will priced different.