Part 5 Place Dynamics
318
how they can make their products available
at the best place and the best time. By doing
this, marketers are providing both place utility
and time utility. In other words, products
are available at convenient places and at
convenient times for customers. Marketers
also make sure that enough products are
available. If customers arrive at a store, but
your product is out of stock, the customers
cannot buy your product. Customers might
then take their business to competitors.
Place decisions include answers to
questions about the following issues:
(1) location of the business, (2) hours of
operation, (3) channels of distribution,
and (4) transportation. Location, hours of
operation, and channels of distribution will
be discussed in this chapter. Transportation
will be covered in Chapter 27. Retailing,
which represents the most common place
issues for consumer goods, will be discussed
in Chapter 28. Chapter 29 will discuss the
Internet as place.
Name a product that you use often. Where do
you buy it? List the place decisions that you
think were made for this product.
3
Reality Check
Location Decisions
When you need a pen, where do you
go? When you want a burger, where do
you go? If you are like most people, your
first choice is probably the closest place
that sells it. The location of a retail store
or restaurant has a huge influence on the
success of the business and the satisfaction of
its customers. Consumer businesses should
be located where customers are. For example,
surfboard shops are located near beaches
used by surfers, 26-3. Fast-food restaurants
are located along highways and in large
shopping malls, where large numbers of
people pass by. Doctors often offer their
services near hospitals, where the patients
are. Political candidates, offering ideas, locate
their campaign headquarters near voters.
Location is also important for companies
that sell to businesses. For example, an office
supply store will be located in the business
district of a city. Office supply stores are not
usually found in a farming area. A business
that supplies auto parts should be close to an
automobile factory.
Site is another term for location. Site
is important for all businesses. What do
companies have to think about when
they choose a site? There are two main
considerations. First, they must be located in
a place where they can easily get the inputs
(materials and supplies) for the business.
Second, they must be located where they can
easily get the outputs (products) to customers.
26-3
Stores are likely to be successful if they are
located near customers who want what they sell.
A surfboard shop would be located near a beach
used by surfers.