Place element of the marketing mix

Place is the part of the marketing mix that covers where a good or service is available to buy and the route or channel it passes through to reach the customer. Where delivery is used, it is part of the place decision because it is how the customer receives the good.

Choosing where and how to sell

Place decisions include choosing suitable locations or sales channels, such as a shop, a market stall, a website or delivering to customers. A business might use more than one channel: a small pottery could sell mugs at weekend craft markets and also take orders through its own website, posting items to customers. Each channel should make buying convenient for the target market. For example, busy commuters may value ordering online and collecting from a locker at the station, while older customers may prefer a town-centre shop where they can ask questions.

Place is more than a location

Place is not only the physical location of the business. It includes how the good or service is made available, such as home delivery, click and collect, or selling through another shop. If a tutoring company teaches face to face in a rented community-centre room and also offers live online lessons booked through its website, both the room and the online lesson are place decisions.

Why an online presence matters

An online presence is increasingly important because customers expect to find, compare and buy goods or services online at any time. A business that is easy to find and buy from online can attract customers who are shopping in the evening or comparing several businesses. An online shop also lets a small business serve customers outside its local area, with delivery forming part of the place decision.