Place: Distribution System

This section was about where to sell the product. A supply chain is all the steps it takes to turn the raw materials into goods or services and getting them to the consumer. It starts with the supplier providing raw materials and parts to the manufacturer. Then the firm manufacturers the product and the products are sent to a distribution channel. The chain must move quickly because some products are perishable. There are independent and manufacturer owned intermediaries.

There are four steps in distribution planning. Step one is to develop distribution objectives. The objectives should support the overall marketing goals of the firm. The next step is to evaluate internal and external environmental influences. This is done to develop the best channel structure. The third step is to choose a distribution strategy. There are different intensities for different strategies. The last step is to develop distribution tactics. In this step partners for the channels are chosen. They are usually long term relationships.

Logistics is the process of working the plan. Logistics include purchasing, manufacturing, storage, transporting, order processing, and inventory control. Things can be transported by airplanes, ships, trains, trucks and even the internet and pipelines.

Pricing

Price is the amount the consumer must pay for the product or service. Price means something different to consumers than the sellers. The consumers view the price as what they have to give up to receive the product or service. The seller views it as the revenue they will receive. The first step in price planning is to develop pricing objectives. There are different types of objectives, depending on what you want to do. The next step is to estimate demand, which is based on previous sales, test marketing and other things. Demand can either be elastic or inelastic, depending on how other factors affect it. The third step is determining costs. Costs can be fixed or variable. The next step is to evaluate the pricing environment, where the price is adjusted depending on cost and competitor's prices. The fifth step is choose a pricing strategy. There are different pricing strategies depending on the company's goals and needs. The last step is to develop pricing tactics. This is where how to charge, bundle and discount is decided.

Marketing Services

Services are acts, efforts, or performances bought by consumers. Services provide benefits such as peace of mind or convenience. Bad service happens when customers aren't satisfied with their service. It may be because the service performed wasn't as good as last time, the service providers are unreliable or untrustworthy or if the tangibles are bad. Services can be B2B or B2C. Radio stations, banks, tv stations, and cell phone companies are all examples of services. Services are a huge part of the US. Services are different from products in four ways. They are intangible, inseparable from consumption, can't be stored for future use, and the quality is more variable. There is a core service and a supplementary service, similar to with products. Services are evaluated using a Gap Analysis Approach. There are five gaps which a service is place in.