Plaza in marketing

Do you even know what plaza means in  marketing ? If your answer was negative, don’t worry. In fact, if you have ever consumed a product or service, it is very likely that you know it more in practice than in theory.

In this article, we will explain in detail what place is and why it is such an important element in carrying out a  marketing strategy . Let’s go!

What is it?

To make a sale, it is not enough to have a good product or service at an adequate price. In addition, you must have an efficient plan to get the product or service to the customer. 

This is where the  square, also known as distribution , comes in .

Placement  is understood as  the way in which a good or service will reach the hands of the final consumer from a company .

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What is it for?

All products and services, once produced, need to reach their final consumer and there would be no way to do so if there were no bridge between the two. 

It is almost impossible for one producer or manufacturer to individually reach all stores.

Therefore, the role of the place in the marketing mix is ​​to specify the transmission of a product or service to the strategic distribution points, so that they reach their consumers in an impeccable manner.

Variables of the distribution

Distribution can be carried out through activities carried out by the organization itself or through an intermediary. For this reason, we divide it into two main concepts:

Physical movement 

It refers to the activities involved in the process of physical distribution of the product to the final consumer. These are some of them:

• handling;
• storage;
• transport;
• inventory control;
• order processing, etc.

Distribution channels 

These are the paths that the product takes to reach the consumer. This is the complex of companies that exist for distribution to occur, including  agents ,  retailers  and  wholesalers .

There are different types of distribution channels, the difference between them is the number of intermediaries between the producer and the end user.

Direct channel

Direct distribution occurs when the producer or manufacturer is the only one responsible for delivering their product or service,  without the need for intermediaries . Examples: factory outlets, service providers, such as dentists, hairdressers, etc.

Short channel

The short channel has only one intermediary in its process:  manufacturer – retailer – final consumer . Examples: car shops, hypermarkets, bookstores.

Long channel

This channel is made up of at least four levels: manufacturer, wholesaler, retailer and consumers, although many more intermediaries may intervene (distributors, warehouses, resellers, commercial agents, etc.).

This type of distribution is the  most common means for the majority of consumer products . Examples: supermarkets, traditional stores, food galleries.

Choosing the distribution channel

You agree that selling dairy products sweden mobile database and electronics is not the same thing, right? Well, there is a lot to consider: transportation, storage, distribution intensity, consumers, and the list goes on.

Therefore, the projection of a distribution channel must consider some factors:

• Evaluation of the real market (made up of people or organizations that have a need for a product or service, have the money necessary to cover it and are willing to spend it) and potential market (public that does not consume the product or service, but that has or may come to have the need to consume it in an established time horizon);
• study of the characteristics, behaviors and needs of customers, as well as their quantity, geographic dispersion and purchase frequency;
• determination of the properties of the product or service (permanence, dimensions, degrees of standardization, etc.);
• Definition of the attributes of intermediaries in terms of the type of transport, equipment and storage system used, information technology, among others;
• analysis of environmental characteristics relating to local conditions, humidity and temperature;
• evaluation of the companies involved in financial strength, products, service levels, marketing, branding , etc.

Distribution channel strategies

Another important point when considering the market strategy is to consider which distribution method will be used. The choice of method depends on the type of product and the market that the company wants to target.

Exclusive distribution

In this type of system, the producer chooses an intermediary and authorizes him to sell exclusively in a certain region. In this type of system, the distributor usually agrees not to sell competing products.

It is widely used when the business requires distributor loyalty and a high degree of control over its activity.

Intensive distribution

The logic of “the more, the better” applies. in some countries such as The manufacturer sells through as many intermediaries as possible. It is used when the aim is to generate high availability of the product in the largest number of points of sale. 

Selective distribution

It occurs when the manufacturer sells through a selected group of intermediaries. It is used when the business needs to be valued.

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Location of the point of sale

The location of the point of sale is a very important decision for the business. If a company manages to choose its location well and reach the right audience, there is no doubt that it will be successful in its sales.

When choosing a location, a company must consider factors such as cost-benefit ratio.

In addition, if it is a physical space, you should look for places with good visibility, easy access, adequate structure (attractive display cases, good lighting and product layout, etc.) among other aspects.

In the case of virtual and online establishments, analyzing which ones will be used ( e-commerce , catalog,  social networks ) is also essential.

Place  or distribution  is very important for the consumer to have access to the product offers. Nothing is more dangerous for a brand than a consumer who is interested in its product but cannot find it. So you can see why this element is so essential.

We hope we have helped you understand the cmb directory concept of place in marketing, but did you know that there are other fundamental pillars for a marketing strategy?

In Digital Marketing, for example, there are countless strategies that can help your business grow. Learn more about them in this ebook.