Marketing plays a significant role in driving every business’s success that sets trends, changes sapience, and generates a product’s market demand. Currently, companies not only use marketing to sell their product but also to publicize certain things. For instance, writers promote their books to gain readers, and the concept is even used for publicizing a specific place for varied goals.
The competition draws between two places to attract businesses, people, and resources in such a situation. The role of Place in the marketing mix helps an individual understand the importance of Place in marketing with context to product availability in the market. In today’s blog, you will get an insight into what is place marketing. Along with its meaning, definition and parameters included.
Definition of Place Marketing?
It is a marketing strategy that publicizes a certain place or location. Using the place marketing concept, one promotes a place’s local attractions, business opportunities, and traditions to compel people across the globe to invest in businesses at that location.
What is Place Marketing?
Place marketing is often described as place promotion or branding, using which a firm or a marketer promotes a place. Gone are the days when businesses only used to market their products and services. Today, firms also employ marketing strategies to promote a country, state, city, village, or building.
The meaning of place marketing is derived from the communication done to gain business opportunities and resources from a particular location.
People who have posted their travel experiences on social media handles make a handsome amount via it. Readers who read these travel blogs are attracted to the sites and eventually visit them. Even though why and how did this happen? Well, the only answer is place marketing.
Here, place marketing has played a pivotal role in motivating the readers to travel to the places of different countries. Not just that, but today a city or any area is also promoted through advertisements.
The administrations are another best example that understands the importance of place in marketing and uses the concept to compel foreign entities to invest in their domestic market or establish their product line in their countries. Through place, marketing administrations build a favorable image of their country among the target group so that more and more global companies invest in their region. China and India are the two biggest markets that attract international markets to increase investment in their respective countries.
Importance of Place in Marketing
There is the paramount importance of place in marketing. Also known as place mix, place marketing targets a specific area vital for a business strategy. The concept ensures the product falls in the right place. Not following the place marketing concept results in:
- Increased cost operations and complexity.
- Reduced agility and flexibility.
To ensure concise place marketing, firms may decrease their product price in certain areas that are less competitive, run contests to attract customers towards a place, etc. The importance of place in marketing can be understood as:
- It attracts international markets or foreign businesses.
- It uplifts culture and its values.
- It promotes and enhances tourism.
- Brings overall area growth.
- Improve local companies or markets.
Except for these advantages that reflect the importance of place in marketing, the concept also brings some extraordinary benefits like new business setup in any area generates new employment opportunities.
Components of Place Marketing
The place marketing concept boasts two major components that assist a firm in accomplishing its business goals and meeting its distribution goals. They are physical distribution and channels of distribution.
It comprises a set of activities that are performed to ensure the smooth physical movement of products by the manufacturer to the customers. It is an effective marketing and place mix aspect. Physical distribution involves essential activities such as processing orders, transportation, warehousing, and stock management.
Order processing: In this process, a manufacturer receives an order, packs it manually, and ships it to the warehouse.
Transportation: The transportation process is vital for any firm in which the physical movement of goods is facilitated through roadway, railway, airways, or shipping.
Warehousing: Warehouses are where a manufacturer places the products for a short period. These items are temporarily stored in warehouses and released when required.
Inventory management: Inventory management refers to the good governance of warehouse goods or items. The inventories act as a reservoir for the products stored in the hope of a sale. In addition, it has a price that can affect the entire business. Therefore, any firm must effectively manage and control the inventories in the warehouses.
#Channels of Distribution-
It refers to the links between good producers, intermediaries, and the end-user involved. Those who understand the importance of place in marketing put a great emphasis on distribution channels as well. After all, the distribution channel is one of the major components of place marketing that is responsible for placing the product in the right place.
Through this component, a network of individuals assists the firm in setting up consistent communication with the consumers and providing the required information about certain items. Besides this, a distribution channel also offers credits to a firm and assists them in after-sales service. Put the distribution channel is an entity that takes over all the risks associated with the distribution function’s performance.
The two channels of distribution are- Direct channels and Indirect channels. The direct channel includes direct mail, online sale, and personal selling. The indirect channels include the participation of wholesalers, agents, and retailers. Regardless of which medium a business prefers, it is used to place the product at the right place, at the right time, and in front of the right consumers.
Henceforth, that’s all to cover for the importance of place in marketing. Place marketing is the umbrella term for country or regional marketing performed to attract visitors and investors to a business. To ensure place marketing in a company, one must involve all stakeholders and make associates, use data for analytics, define their USPs, create a unique brand, search the target audience and place the items in front of them. Exercising the place marketing concept frequently, one not only promotes the place of the product but also exposes them to the international market immediately.