Part 1 Marketing Dynamics
22
The place element includes distribution.
Distribution is the process of physically
delivering goods to customers. Distribution
includes shipping, storing, inventory, and
stocking of goods.
Good decisions about place help a
business run smoothly, 1-7. When poor place
decisions are made, major problems can
result. Customers get upset because products
are not available when they want them.
Customers might express their dissatisfaction
by shopping at a competitor’s store. This
type of loss of customers might lead to
financial losses for the business. For example,
suppose you went to an ice cream shop, but
they were out of your favorite flavor. This is
an example of a poor place decision because
the store did not have the product on hand
when you wanted to buy it. As a result, you
might go to a competing ice cream shop.
If your experience at the competitor’s shop
is satisfying, you may never return to the
first shop.
Have you experienced poor place decisions?
Describe one example.
3
Reality Check
Price
Price is the amount of money requested
or exchanged for a product. Marketers
determine the price they charge for their
products. Marketers can set prices at any
level. However, if marketers set prices too
high, customers might not buy the product.
If marketers set prices too low, they might
not take in enough money to cover expenses
and make a profit. Setting the best price is
important for business success and customer
satisfaction.
Does the price of a product affect whether you
will buy it? Give an example.
3
Reality Check
Promotion
Promotion is the process of telling
people about the product and the company
that offers it. It includes telling people about
the price and the place where it is offered. If
customers do not know that a product exists,
they cannot buy it. If customers do not know
where to find a product, they will not be able
to buy it.
Promotion is the most visible part of
marketing. Promotion includes a variety of
activities designed to include a customer in
1-6
Services, such as a manicure, are considered
products.