Commerce

Principle of Marketing: Place as a Marketing Mix

len Alfred Ajibola - Mon, 02nd March, 2020 @ 10:36

Topics in Commerce

Elements of Promotion in Marketing Mix Principle of Marketing: Promotion as a Marketing Mix Principle of Marketing: Place as a Marketing Mix Principle of Marketing: Price as a Marketing Mix Principles of Marketing: The 7 Ps of Marketing Mix Factors necessary for Division of Labour Disadvantages of Division of Labour Advantages of Division of Labour Outbound Marketing explained Inbound Marketing explained Production - Types of Production Commerce: Definitions and Scopes of Commerce Differences between Balance of Trade and Balance of Payments Balance of Payment Deficit and Balance of Payment Surplus Disadvantages of Foreign Trade Divisions of Foreign Trade Advantages of Foreign Trade What is Foreign Trade? Types of Foreign Trade Scheme of Work for Commerce, SS1, First Term Scheme of work for Commerce, SS1, Second Term

Academic Questions in Commerce

Please check out our Test Your Knowledge page to see all Questions and Answers

The followings are advantages of division of labour EXCEPT _____.

  • A. It promotes the use of machines in production industries
  • B. There is an increase in profit
  • C. It saves time and expenses of training
  • D. It fosters the spirit of division
  • E. It increases the production of quality goods and services in the market
  • F. It increases a country's economic growth

Which of the following statement is incorrect concerning division of labour?

  • A. It is the specialization of works
  • B. It can become monotonous
  • C. It is the specialization of processes
  • D. The nature of a job is not a condition for division of labour
  • E. A person performs only a part of the job
  • F. Division of labour has some of its drawbacks

What does a bearer cheque mean?

What is an order cheque?

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Place as a Marketing Mix:

Place as an element of marketing mix may also be referred to as placement, location or distribution. Place is considered an important element of marketing because the goal of production is the product's reachability to the final consumers.

Please read on the Concept of Production here.

It is possible for a producer to have the best of product(s) (in terms of quality) but yet, lack an appropriate place, location or platform where such product can be marketed. This will imply that an appropriate number of consumers will not get such product. For this reason, every business person prefers to locate his or her business in strategic places and locations.

Please read on the Concept and Branches of Marketing here.

  • Simply put, place as an element of marketing may be defined as a location that strategically puts a business into the visibility of a large pool of consumers. It acts as a point where a product is moved from the seller's location to the point of usage of the buyers.

    • Please read on Price as a Marketing Mix here.

The distribution channels (wholesalers and retailers) play an important role towards the availability and reachability of a product. For instance, a wholesaler may purchase a product from another country (e.g America) and sell it at various locations (places) in Nigeria. Through this process, the final consumers located in different places within Nigeria are able to get the products.

Please read on Wholesale Market and the Wholesaler here.

Similarly, the retailers are often located around the final consumers. In fact, some may even peddle or hawk their product(s) to the place where the final consumers are located.

Please read more on the Retail Market here.

Note: The internet has now become a market place where almost every kind of goods are sold and services rendered. To this end, business owners may own physical locations and online platforms where they sell goods and render services simultaneously.

Please read on Promotion as a Marketing Mix here.

We live in a digital age where every product can be purchased from the comfort of our homes. This implies that products located (or placed) online will likely have a global audience if properly managed. This is probably why we see numerous e-commerce stores and web adverts on the internet. As an instance, you may see some web advertisments on Len Academy and other web applications.

Please read on the Internet of Things (IoT) here.

Recall that the process of inbound marketing requires that consumers search for their needs and wants until they eventually find their product of choice (if it falls along their search). Therefore, the processes that effectively accomplishes inbound marketing activity will require an appropriate place, placement or location. This is extremely important towards achieving an increase in the sale of a manufacturer's products.

Please read more on Inbound Marketing here.

You can read on Scale of Preference and Opportunity Cost here.

It is important to state that physical locations (structures) are crucial factors often required for successful marketing. This is true because those whose shop(s) are located in a densely populated area will likely make more sales when compared to another in a less populated area.

Please read on the Concept of Business and Business Studies here.

Note: A business may also be managed successful without a physical location. In this case, the internet provides a virtual marketplace.

Please read on the Characteristics of Business here.

Finally, the marketing executives will provide the best points of sale for their organization's products in order to maximize profit.

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Alfred Ajibola is a Medical Biochemist, a passionate Academician with over 7 years of experience, a Versatile Writer, a Web Developer, a Cisco Certified Network Associate and a Cisco CyberOps Associate.

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Amazing facts in Commerce

Amazon is an e-commerce website launched in 1995. It did not make any profit for its first seven years.
Amazon's first profit was in 2003. Its founder "Jeff Bezos" is the richest man in the world as at 2018/2019

NOTABLE POINTS IN Commerce

Commerce can be defined as the exchange of goods and services, usually for money and on a large scale that will require the transportation of such goods and services.

Commerce is very important to the life of any Nation for the following reasons:

  1. Commerce facilitates the exchange of goods and services which everyone can enjoy, regardless their location or whether the goods is produced within or outside their country.
  2. Commerce creates an awareness of the existence of goods and services through advertising.
  3. Commerce offers employment to a very large number of people in a Nation.
  4. Commerce promotes rapid transfer of both oral and written messages through communication.
  5. Commerce determines the standard of living in a Nation. This is because the extent of commercial activities is crucial to wealth of  a nation.
  6. Commerce makes for the protection against risk in day to day business operations.
  7. Through commerce, there is a steady supply of goods in a Nation. This is because commerce ensures that goods produced are stored until needed.

A public company is not owned by an individual. Usually, it is owned by groups or a very large number of people.

The shares of a public company are traded freely on the stock exchange.

Below are some features of a public company

  1. A public company must receive it’s training certificate to commence business.
  2. The minimum membership is two while the maximum membership is limitless.
  3. A public company has a legal status. It can sue and be sued.
  4. A public company files and publishes its annual reports, including its accounts.
  5. The liability of its members is limited.
  6. The shares are easily transferrable through the stock market.
  7. A public company can issue debentures to be secured as its assets.

Please read on the types of business structure here

The four elements of the marketing mix are usually referred to as the 4 “P”. These are:

  1. Product: Anything thing that satisfies a consumer’s need is referred to as a product. Product may come in the form of manufactured goods, raw materials or services.
  2. Price: Price is defined as the exchange value of goods and services supplied. In simple terms, it serves as a mechanism of exchange.
  3. Promotion: It involves all the processes that concerns with how business organizations should inform their customers about its product. If done properly, the demand of product will be increased. Promotions can take the form of advertising, search engine optimization, social media marketing, trade fairs exhibition and so on.
  4. Place: The place as a marketing mix concerns variables such as location and transport facility where the distribution of goods and services take place.

Think of marketing mix as the set of marketing tools that an industry or company uses to drive or accomplish its marketing objectives in the target market