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5Ps – Placement

Placement 

Where and through what methods are the products or service sold?

 

Locations

  • Local, National, International,
  • Internet-based, physical locations.
  • Logistics, including transportation, warehousing, and order fulfillment

Distribution Channels

  • How does the company plan to get the product/service to the end user?
  • What channel of distribution is to be used?
    • Direct—manufacturer to consumer.
    • One stage—manufacturer to retailer to consumer.
    • Traditional—manufacturer to wholesaler to retailer to consumer.
    • Multi-stage—manufacturer to broker to wholesaler to retailer to consumer.
  • Who or what company will carry out the distribution?
  • How will you motivate the distribution channel?
    • What will the distributor profit margins look like?
    • Are commissioned salespersons to be used?
  • What are the costs associated with the proposed distribution channels?
  • Criteria for evaluation distributors?
  • How do these channels affect delivery/production time frames?
  • What are delivery terms?

Degree of Directness of the Channel

  • Marketing Conditions – Are end users concentrated (direct) or dispersed (indirect) in market.
  • Product Attributes – Is product large (direct) or small (indirect), bulky (direct), perishable (direct), hazardous (direct), expensive (direct).
  • Cost Benefits – Considers the cost benefits in selection of channel members; many benefits (indirect) minimal or no benefit (direct).
  • Venture Attributes – Financial strength, size, channel experience, and marketing strategy of venture.

Number of Channels

  • Intensive – As many retailers, wholesales, etc., as possible.
  • Selective – Small number of channel members based on some set of criteria or requirements
  • Exclusive – Select only one wholesaler and/or retailer.

Criteria in Selection of Channel Members

  • Reputation
  • Services Provided

Number of Channels

  • One channel for on target market or multiple target markets.
  • Multiple channels for one target market or multiple target markets.

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