1. The Marketing Mix - Place
N5 Business Management

2. Learning Intentions
Understand why Place is an important factor businesses need to consider.
Be more aware of the factors a business will consider when choosing a location

3. Place
Place refers to wherever a business owner decides to locate – this means where to have their shop or where to sell their product.
Remember – businesses don’t need to have an actual shop or premises, a market can exist in a number of place, online, etc.
There are however a number of things that have to be considered when deciding where to locate.

4. Business Location Factor Why Where the customer is
Market research will help to identify where customers for a particular item exist and where the business could locate to meet them.
Availability of a suitable premises
The business might need a certain size of shop or a shop with certain facilities – these premises might only exist in certain places.
Parking facilities
Customers need to be able to easily access the building or they could be put off using it. The business will also need to have disabled parking facilities.
Suitable infrastructures/ Access
This refers to the availability of water, gas, electricity and transport links. This is important for the business to be able to operate.

5. Government incentives/grants
Sometimes government will offer incentives to encourage businesses to open in certain areas.
The market segment
The customer group being targeted can be a major influence in where the business sells its products.
Employee availability
The business may need to be in an area where there are plenty of people who could make up its workforce. Or, the business may look at a place with a certain number of people with a certain skill.
Competition
A business might want to set up as far away as possible from its competition or it may wish to be closer to try and decrease their market share.
Environmental impact
Businesses need to consider the environment when deciding on a location – they need to consider being socially responsible when undertaking construction work/setting up, etc.

6. Activity – Literacy Challenge
In two’s, try to come up with an Acrostic piece to remember the location factors businesses need to consider.
Your Acrostic “word” will be PLACE

7. Example
People: employees and customers nearby? Location: is it in a town centre or outside? Access: is there parking facilities, disabled access, bus links? Competition: are there many or few competitors? Environmental impact: will building there be ok?

8. The Marketing Mix: Place
Lesson 2

9. Distribution Methods
As well as deciding where to locate their shop/premises – businesses also have to think about how they are going to get their product to the customer. This is assuming that the product is a tangible good, but some products might be available electronically over the internet.
There are four main methods of distribution:
Road
Train
Aircraft
Boat

10. Distribution - Road
Products might be delivered using the road network.
Advantages
Disadvantages
Often cheaper than other methods
It is difficult to transport large products
Delivery is often quick
Not as environmentally friendly
Customer receives the product direct to their door
Roadworks might cause delays

11. Distribution - Rail Products can be delivered by train Advantages
Disadvantages
Large products can be transported
There isn’t a train station in every location
Large quantities can be transported
Not a door-to-door service

12. Distribution - Aircraft
Products can be delivered by air
Advantages
Disadvantages
Products can be transported across the world quickly
Larger items can’t be transported
Large amounts of small products can be transported
Products need to be taken to an airport to be loaded – this can be expensive
Not a door-to-door service

13. Distribution - Sea Products can be delivered by boat Advantages
Disadvantages
Larger products can be transported
It is quite time consuming to transport products across the world
Products can be transported across the world
Not a door-to-door service