Topic 7: Place

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Topic 7 Place

• Principles of Marketing Management
• Entrepreneurial Focus

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What Does Place Mean?
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Geographical Considerations

• Key Consideration 1
• Key Consideration 2
• Key Consideration 3

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Location of Operation Considerations

• Services

• Manufacturing

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Three Basic Site Selections
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____________ Businesses

• Zoning
• Customer contact
• Family consideration
• Home office
• Location and space
• Tools and furniture
• When do you outgrow?

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______________ Contact

• Traffic
• Best sized target market
• Traffic generators
• Customer ease
• Traffic barriers, parking
• Distance from the customer
• Competition
• Competition clusters

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Major Types of __________

• Independents
• Chains
• Leased department
• Cooperatives

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Major Types of _____________

• General merchandise
• Department stores
• Discount stores
• Supermarkets
• Superstores
• Hypermarkets
• Warehouse clubs
• Warehouse catalog showrooms
• Convenience stores

• Specialty retailers
• Traditional specialty retailers
• Off-price retailers
• Outlets
• Category killers

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Retailing Environment

• Controllable

• Non-controllable

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Strategic Issues in Retailing______________ of
Retail Stores

• Free-standing structures
• Traditional business districts
• Traditional shopping centers
• Neighborhood shopping centers
• Community shopping centers
• Regional shopping centers
• Nontraditional shopping centers

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Strategic Issues in Retailing

• Global retailing
• Customer service
• Retail positioning
• Atmospherics
• Scrambled merchandising

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____________ Contact

• Business or industrial parks
• Empowerment zones
• Business incubators

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Build, Buy or Lease?

• Tax advantages
• Control
• Remodeling
• Longevity
• Moving

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Some Definitions

• __________ the activities that make products
  available to customers when and where they want
  them
• __________ group of individuals and
  organizations directing products from producsers
  to customer
• __________ middlemen linking producers to other
  middlemen or ultimate consumers

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____________________

• Objective establish relationships by soliciting
  a direct and immediate response from prospects or
  customers
• Targets a carefully selected audience
• Involves two-way communication
• Is quite measurable

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Types ________________

• Word of mouth
• Direct sales
• Direct mail
• Telemarketing
• Direct response advertising
• Guerilla marketing
• Multi-channel marketing
• Internet

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__________________

• Simple, easy, cheap
• Limiting and not controllable
• Referrals

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Direct sales
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__________________

• Pros
• High response rate
• Personalization
• 100 target market coverage
• Fewer distraction
• Con
• High cost
• Delivery problems
• Junk mail

• Types
• Sales letters
• Postcards
• Catalog
• Video catalog
• Promotional video/audiocassette
• Promotional interactive diskette
• Leaflets and flyers
• Statement stuffers

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______________________

• Less expensive than personal selling, but most
  expensive direct marketing form
• Outbound marketer calls customer
• Inbound customer calls marketer
• POOR image
• Invasion of privacy
• Misleading tactics

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________________________

• Infomercials - Pros
• Not lost among other ads
• Detailed explanations
• Very measurable
• Infomercials Cons
• Late night or cable only
• High cost
• Poor image

• Direct response TV
• 800 or 900 number
• Call now to . . .
• Direct response radio
• Highly targeted audience
• Highly distracted audience

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_______________________

• Ad with address, order form, coupon, telephone
  number or Website
• Reader response or reader reply cards
• Floppy disks

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____________________

• SPAM
• CAN-SPAM
• State legislation
• Opt-in

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Guerilla Marketing
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Multi-channel Marketing
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Internet
Next week!
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Channel Functions

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Channel Utilities

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____________________

• Consumer
• Characteristics
• Needs
• Segments
• Company
• Goals
• Resources
• Expertise
• Experience
• Competition
• Characteristics
• Tactics

• Product
• Value
• Complexity
• Perishability
• Bulk
• Tradition
• Distribution channels
• Alternatives
• Characteristics
• Availability
• Legalities

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Distribution Intensity
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Types of Wholesalers

• Manufacturers sales branches and offices
• Merchant wholesalers
• Full-service wholesalers
• General merchandise wholesalers
• Limited-line wholesalers
• Specialty line wholesalers
• Rack jobbers
• Limited service wholesalers
• Agents and brokers

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Types of Wholesalers
Various Services That Limited-Service Merchant
Wholesalers Provide
Cash-and- Carry
DropShipper
Mail-Order
Truck
Physical possession of merchandise Yes Yes No
Yes Personal sales calls on customers No Yes
No No Information about market
conditions No Some Yes Yes Advice to
customers No Some Yes No Stocking and
maintenance ofmerchandise in customers
stores No No No No Credit to customers No No
Yes Some Delivery of merchandise to
customers No Yes No No
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Types of Wholesalers
Various Services That Agents and Brokers Provide
Manufac-turersAgents
Commis-sionMerchants
SellingAgents
Brokers
Physical possession of merchandise Some
Some Yes No Long-term relationship
with buyersor sellers Yes Yes Yes
No Representation of competing product lines N
o No Yes Yes Limited geographic
territory Yes No No No Credit to
customers No Yes Some No Delivery of
merchandise to customers Some Yes Yes
No
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Physical Distribution
Railroads Trucks Waterways
Airways Pipelines
Coal Clothing
Petroleum Flowers Oil Grain Paper
goods Chemicals Perishable Processed
Chemicals Computers Iron ore food
coal Lumber Books Bauxite
Instruments Natural gas Automobiles
Livestock Grain Emergency Water
Steel parts Chemicals
Overnight mail
NEW! ___________________
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Legal/Ethical Issues

• Exclusive territory
• Exclusive dealing
• Tying contracts
• Consumer fraud
• Shoplifting
• Slotting fees

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Which Channel Members?

• Trace the channel
• Be different
• Establishing your credibility
• Direct sales
• E-Tailers

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International?

• Always domestic
• Always international
• Someday . . .
• Born internationals

• Export/import
• License/franchise
• Joint venture
• Wholly owned subsidiary

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_____________________

• Are we ready?
• Where should we go?
• Who do we contact?
• Do it!
• Shipping documents
• Payments
• Financing and insurance
• Conflict resolution

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Where to Get Help