The ‘place’ in marketing refers to where the product or service is made available to the consumer – IT IS NOT NECESSARILY WHERE THE BUSINESS IS LOCATED.
Many products are made available through retailers (traditional bricks and mortar stores) and e-tailers (online direct to the consumer).
Retailers could be part of a large chain selling across the globe (competing on price through economies of scale), others could be small independent retailers selling niche products and competing on non-price factors such as service.
ADVANTAGES OF RETAILERS
- shopping can be seen as a leisure activity
- no delivery time
- customer can see, touch and try the product before buying
DISADVANTAGES OF RETAILERS
- restricted opening hours
- have to travel to them, pay for transport and parking
- can be more expensive than e-tailers
ADVANTAGES OF E-TAILER
- no shops therefore reduced fixed cost and fewer staff so can sell cheaper
- open 24/7
- access wherever internet connection
- no queues
DISADVANTAGES OF E-TAILER
- security and fraud with online purchases
- cost of delivery
- no face to face interaction with staff who could help yo with your purchase
Sample exam question
Outline on reason why being an e-tailer gives Amazon an advantage over Argos (2)
THIS ANSWER NEEDS CONTEXT (highlighted in green in the answer below)!
e.g. Amazon don’t need to pay for high street stores so they can sell their books, DVDs and other products cheaper than Argos