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Critical
Thinking
Key
Terms Objectives
Web
Connect
What Is Place?
Place is a part of the four Ps of marketing. In marketing, place refers
to the activities involved in getting a product or service to the end
users, as illustrated in Figure 10-4. Place is also known as distribution.
Physical distribution activities include order processing, warehousing
or storage, material handling, and transportation. The objective of
place is to deliver exactly what the end user wants. This must happen
at the right time, in the right place, and at the right price.
Supply Chain
As discussed earlier, a supply chain is the businesses, people,
and activities involved in turning raw materials into products and
delivering them to end users. The supply chain for some businesses
can be very short. For other businesses, it can be rather lengthy.
One part of a supply chain consists of businesses that supply the
raw materials, component parts, and other supplies to manufacturers
Proper distribution is
crucial to the success
of any business. It can
influence customer
goodwill, the ability to
sell products, and the
company’s profitability.
It may even be a
determining factor
in whether or not a
business remains
open.
FYI FYI
SECTION 10.3
Place
After completing this section, you will be
able to:
Define place as it applies to the four Ps of
marketing.
Discuss the importance of managing a
business’ supply chain.
Explain the channels of distribution.
List factors that impact place strategies.
place
supply chain management
intermediaries
channel of distribution
direct channel
indirect channel
utility
Research the four types of utility—place,
time, possession, and form. How will utility
influence the delivery of your product?
Are you going to be a manufacturer,
wholesaler, or retailer? Think about the
supply chain that will apply to your business.
Sketch the supply chain in proper order.