275 Section 10.2 Price Copyright Goodheart-Willcox Co., Inc. Objectives 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. Key Terms place supply chain management intermediaries inventory channel of distribution direct channel indirect channel transportation bulk-breaking freight forwarder utility Critical Thinking 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. SECTION 10.3 Place How does place affect the availability and cost of products? How does place affe ct t h What Is Place? Place is a part of the four Ps of marketing. In marketing, place refers to the activities involved in getting a good or service to the end users. 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. FYI 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.