Place includes both the geographical location where the product is offered and the (type of) distribution channel. Shopping centres are places where commerce is dominant. Besides location, the place where the product can be found in the shop is also a relevant factor; suppliers pay to have their products placed at eye-level in supermarkets, at the outer ends of the aisles and at the cash register (bargains).
Distribution can be divided into direct and indirect distribution. Direct distribution means that the product is delivered directly from the supplier to the end user (insurance companies, outlet stores and sales through the Internet). Indirect distribution means that the product is sold to the end user by means of an intermediary such as a wholesale or retail business.
Promotion
All communication of a company that is aimed at stimulating sales comes under promotion. Promotion is a broad concept and can therefore be divided into different sub-categories (promotion-mix):
Public relations: Is aimed at a good relation with public groups such as customers, competitors, suppliers and financiers.
Free publicity: This creates familiarity for instance by press releases and/or by publishing favourable user reviews. Unfortunately, complaints made in public also come under free publicity.
Advertising: This is commercial non-personal communication aimed at large groups of consumers. Its main objective is to generate sales (e.g. advertising leaflets, radio and television commercials and bus shelter advertising).
Personal sales: An effective but expensive sales tool. During interactions with the customer any objection or preconception can be responded to. Personal sales bring about customer relations; a bond of trust is created with the customer.
Sales promotion: Here the emphasis is on price reduction such as 3 for 2, promotional price or a sale. The price reduction itself comes under the ‘P’ of price.
Cold calling: This is about approaching random or selected individuals or companies by telephone with the objective to sell products.
Planning
In the long term all four variables can be adjusted by marketeers. In the short term, however, the variables product and place/distribution channel are difficult to influence and/or change. Within the marketing mix strategic long-term planning is very important, because it is only then that the product and the distribution channel can be adapted. When marketeers want to change or adapt something within the marketing mix, they are almost forced to limit themselves to half their instruments. Therefore, they need to sell at record low prices and the consumer will be inundated with advertising.