PLACING

PLACING STRATEGY

• Marketing channels

  • refer to the pipeline of organisations involved in the process of making a product or service available for use or consumption by consumers or businesses. Sometimes we call them marketing intermediaries

• Marketing functions

  • Transactional

    • Contacting/Promotion 

    • Negotiating → A retailer negotiates with a supplier to purchase a certain quantity of products at a specific price, with agreed-upon delivery dates and payment terms.

    • Risk Taking → Assuming the risk of owning inventory that might not sell.

  • Logistical

    • Physical distribution → Imagine you're baking cookies at home. Physical distribution would be how you get those cookies from your kitchen to your friend's house. 

    • Storing →  process of holding goods in a warehouse or storage facility until they're needed. It's like keeping your groceries in the fridge until you're ready to cook them.

    • Sorting → process of organizing and categorizing products to prepare them for shipment. It's like putting your clothes into different piles based on where they need to go (dirty clothes, clean clothes, laundry).

  • Facilitating

    • Researching → It involves gathering, analyzing, and interpreting information to understand customer needs, market trends, and competitor activities.

      • Analyzing customer feedback: This includes monitoring customer reviews, social media comments, and customer complaints.

    • Financing → banks

• CHANNEL STRATEGIES

  • Intensive

    • Intensive distribution is a strategy where a product is made available in as many outlets as possible. The goal is to achieve maximum market coverage and ensure the product is easily accessible to consumers.

    • Product availability: The product is widely available across various retail channels.

    • Market saturation: The aim is to flood the market with the product.

    • Consumer convenience: Customers can purchase the product easily without much effort.

    • High inventory levels: Requires efficient logistics and supply chain management.

    • Fast-moving consumer goods (FMCG): Soft drinks, snacks, candy, and toiletries.

    • Convenience goods: Milk, bread, and newspapers.

  • Selective

    • Selective distribution is a marketing strategy where a product is sold through a limited number of carefully chosen retailers or wholesalers. It's a middle ground between intensive and exclusive distribution.

    • Limited number of outlets: The product is available in a select group of stores.

    • Control over distribution: The manufacturer maintains some control over the distribution process.

    • Prestige and image: This strategy can help maintain a product's image and exclusivity.

    • Specialized retailers: Often involves partnering with retailers that have expertise in selling the product.

    • Consumer electronics: Brands like Sony or Samsung might choose specific electronics retailers.

    • Apparel: Designer clothing brands often use selective distribution to maintain exclusivity.

    • Automotive: Car manufacturers typically use a selective distribution network of dealerships.

  • Exclusive

    • Exclusive distribution is the most restrictive form of market coverage. A manufacturer grants a single retailer or distributor the exclusive right to sell a product within a specific geographic area.

    • Single channel: Only one intermediary is allowed to sell the product.

    • Limited market coverage: The product is available in a restricted number of locations.

    • Prestige and exclusivity: Creates a perception of luxury and exclusivity.

    • Strong control: The manufacturer maintains high control over the distribution process.

    • Luxury cars: Brands like Rolls-Royce often use exclusive dealerships.

    • High-end fashion: Designer brands may limit distribution to specific boutiques.

    • Specialized products: Products with unique technical requirements might be sold through exclusive distributors.