Place, price and image

Place is where and how a product is made available to customers, such as a shop, website or market stall. It must match the image and quality of the product, because customers read meaning into where they find something and use that to judge it.

An unsuitable outlet can change how customers perceive a product. A cheap pair of trainers on display in a smart sports shop may look like a clever bargain, or shoppers may doubt they are genuine, while an expensive pair of running shoes in a discount clearance warehouse may be taken for faulty stock or an old model. The outlet is part of the product's image, even when the product itself has not changed.

How place affects price

Where a product is sold also affects the price that can be charged. An affluent location can support higher prices because customers there may be willing and able to pay more. Businesses in areas with lower incomes usually need to set lower prices. The cost of premises must be considered too, because expensive rent or running costs may force the business to charge a higher price.

Place, price and image together

Imagine a small business that builds wooden garden benches. In a garden centre in a prosperous town, the rent is high but shoppers expect quality, so £120 a bench feels reasonable. The same benches in a discount clearance warehouse look expensive beside cheaper flat-pack alternatives; a lower price of £70 and plainer labelling would fit that outlet better. Place, price and image should therefore support one another, so the customer gets one clear message about what the product is worth.