What is Placement in the Marketing Mix?

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

The various aspects of product placement include:

• Location
• Distribution Channels
• Directness of Channel
• Number of Channel Members
• Criteria for Channel Members
• Number of Channels per Market

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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 Channel Members

• 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 per Target Market

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

Related Topics

• What is a Marketing Strategy (Marketing Mix)?
• 4Ps (sometimes 5, 6, or 7 Ps) of Marketing Definition
• Marketing 4 Ps - What is Product?
• Marketing 4 Ps - What is Placement?
• Marketing 4 Ps - What is Price?
• Marketing 4 Ps - What is Promotion?
• Marketing 4 Ps - What is Packaging?
• Marketing 4 Ps - What is Process?
• Elements of a Good Marketing Strategy?
• What is a Marketing Plan?
• Outline for Marketing Plan
• The Mission and Product/Service Statement
• Situation Analysis
• Target Market
• Marketing Objectives and Goals
• Marketing Strategy
• Action Plan
• Budget
• Controls
• What Does "Place" or "Placement" Mean?
• What is a Distribution Channel?
• What is Direct Distribution and Indirect Distribution
• What is Multi-Channel Distribution?
• What is a Channel System?
• Vertical Market
• Vertical Integration
• Ideal Market Exposure
• Intensive Distribution
• Selective Distribution
• Exclusive Distribution
• Discrepancy of Assortment
• Discrepancy of Quantity
• Channel Conflict
  • Channel Stuffing