do you know what the marketing square is? If you are a person interested in the marketing area, it is likely that you have heard of this term. When you want to buy clothes, the most common thing is to go to a store that you like, either because of the designs, prices or quality. Precisely, that is a marketing place, the means by which a product reaches the final consumer.
Usually, entrepreneurs focus on developing a high quality product or service that is unique and eye-catching. However, it is important to be clear that if you do not have an ideal sales channel to offer your products, it will be useless .
We believe it is essential to know what the market place is in marketing, since the concept is a fundamental part of the 4Ps of marketing, together with the product, price and promotion, being one of the most important theories in this discipline.
That is why, in this article we will show you what a marketing place is and what it is for. In addition, we will show you the different types of marketing places that exist. Likewise, you will learn how to make a marketing place strategy and you will know some concepts about digital places.
Definition of marketing place
The marketing place, also known as distribution channel, is one of the elements that are part of the marketing mix, in particular, the one with which you guarantee that consumers can obtain your products.
In order for you to better understand what a marketplace is in marketing and to be able to improve your marketing strategies, let’s look at an example:
Let’s say you are interested in buying a new video game that went on sale. It is likely that, to get it, you have different options: you can go to the same store and buy it or you can also go to the website and make an online purchase. Both means to buy the product is what we call “plazas” in marketing.
As explained by the Escolme University Institution, when defining what a market place is in marketing, it is important to keep in mind that this concept does not refer to the location of the business as such, but to the task of getting the product to the location of the target audience, that is, the customers.
There are different types of distribution channels, such as wholesalers, retailers, distributors and even the digital marketplace. Below we will discuss how these distribution channels work and how they are integrated to form a marketing marketplace.
what is the marketing plaza for?
Itmay seem more feasible for a company to distribute its own products directly without the help of a distribution channel and intermediaries, but in practice it is impossible for a manufacturer to reach all its potential customers on its own.
Companies must use the right distribution channels to reach a larger number of people.
According to the marketing mix theory, if you plan a direct sale of your goods and services, you must take into account that sometimes you will not be able to satisfy customer demand.
The premise behind the marketing square is that customers should be able to access what they want to buy when and where they are. Obviously there is no way for a company’s products to be available everywhere, but the more the distribution channels are optimized, the more reach the brand can have.
If we wanted to explain what the marketplace is in marketing in a simpler way, we could say that the marketplace is not the place where we offer the products and services themselves, but the place where the customers are and, therefore, where the business must reach.
That is why distribution channels are so important for companies that want to grow, because they allow bridging the gap between the brand and the people who will consume it.
Now that you know the importance of marketing places, let’s get to know the different types that exist. read on!
what are the types of marketplaces in marketing?
Now, the next question that may be on your mind is: How does the product reach the market? Well, this is possible through distribution channels or types of marketing places. let’s see what they are!
This is probably the best known marketing channel. It is characterized by the fact that the manufacturer of the product is the one who will be in charge of distributing and delivering it. There are no external agents involved in this process.
Direct selling can be a good starting point, especially if your product offering is limited or you only sell seasonal items. Because of the close contact with the customer, one of the great advantages of this type of marketing space is that you can interact with consumers.
In addition, the distribution process is shorter and involves a lower cost compared to other types of marketing plazas.
An example of such a marketing plaza would be a dessert stand on the street. It is likely that the person setting up this venture would wake up early to prepare his desserts and then go out to sell them. As can be seen, the producer himself has the final contact with the customer and no external channel intervenes. This is the direct distribution channel.
Just as there is a direct distribution channel, there are also certain types of marketing places, in which external agents intervene. It is not only important to know what a marketing place is, but also to identify opportunities for expansion in order to reach the greatest number of people. For this purpose, indirect channels are necessary.
Bearing in mind what is the marketplace in marketing, we will see the main intermediaries that exist. Intermediaries play a crucial role in the distribution process, as they facilitate the product delivery process.
There are four types of intermediaries in marketing:
The agent is an independent entity that acts as an extension of the manufacturer, being the main representative to customers. This type of marketing intermediary earns money from commissions and fees paid for their services.
An example of such an intermediary is a real estate agent. Imagine you have a construction company and you have developed a large building. However, you don’t have the exposure channels to get them sold. The real estate agent will be in charge of selling all the apartments, obtaining commissions for each sale made.
Wholesalers are also independent entities that buy products “wholesale” from a manufacturer and then sell them in smaller quantities, generating an extra profit. Wholesalers rarely sell directly to an end user, as their customers are usually another type of marketing intermediary, such as a retailer.
For example, one of these types of marketing intermediaries could be any wholesale supermarket. They are very common and there is at least one in every country in Latin America. These supermarkets have as their main clients entrepreneurs who have small stores or market stalls; in this way, they manage to generate profits.
Distributors differ from wholesalers in one important respect. A wholesaler may carry a variety of competing brands and types of products, while a distributor will only sell a limited variety of products, and usually has a close relationship with the manufacturer.
Distributors may sell to wholesalers, retailers and even to the end consumer, and they seek to generate different promotions or marketing strategies to sell the products they stock.
An example of a distributor can be a sports store, where they have different brands, such as Nike, Adidas, Puma, among others. This distributor store has a direct contact with the manufacturer brands, which provide products to be sold. In addition, as we mentioned, the product can be purchased by almost any customer.
do you see how important it is to learn what the marketplace is in marketing in order to be clear about the differences between intermediaries?
Finishing with this list of the types of intermediaries in a marketing plaza, we have the retailers. These are the ones who always have direct contact with the final consumer .
Retailers buy products from distributors and wholesalers at a relatively low price and then sell them at a higher price to generate revenue. There are many examples of retail businesses, perhaps the easiest to understand is the little shop near your home.
The owner of that store will have to buy all his products wholesale in order to generate income. It is definitely important to know what the market place is in marketing and the different intermediaries.
To finish with the types of distribution channels, we have the dual channel. This is mainly characterized by using a combination of direct and indirect sales. Through this distribution channel, you can reach a large number of customers without neglecting the direct and friendly treatment that will allow you to improve the user experience.
Now that you know what a marketplace is in marketing and the different types of marketplaces that exist, it is important that you learn about different strategies to apply in your business. so let’s continue!
how to make marketing place strategies?
are you thinking of implementing a marketing place strategy? Great. But before creating a marketing place strategy, we recommend you to consider the best distribution modality in which it will be carried out. To do so, you should do the following:
Analyze the customer and understand their needs.
Define the objectives of the channel or type of marketing place.
Solve any inconvenience in the distribution processes.
Ask yourself these key questions:
where do users look when buying the product?
If it is a physical store, is it a supermarket? a specialty store? or perhaps an online store?
what is the available access to distribution channels?
what are competitors doing? how do they distribute their products?
It is important to know our target audience well in order to answer these questions correctly and not design the wrong marketing strategy. It is also necessary to do a good market study to have the competition and strategic partners on our radar .
If you know what the marketing place is, the next thing you should master is the benchmarking technique. In short, benchmarking is a systematic and continuous process that evaluates and analyzes processes, services and techniques inside or outside your company in order to improve your efficiency.
After answering these questions and analyzing the market, it is time to use different methods to get your products to customers. Here are three marketing place strategies you can use:
This marketing place strategy can be used to sell a large quantity of products at a very affordable price. Basically, it consists of placing the products you want to sell in a large number of sales outlets. In this way, the exposure is large and customers have the opportunity to consume more of the product.
In addition, it is worth mentioning that this marketing strategy is usually the most used by large organizations to reach their customers across the country or around the world.
Convenience products or items that we buy on a regular basis are some of the examples that are effectively distributed through this marketing place strategy.
In this marketing strategy, a product can be purchased in selective points of sale. When a business chooses this type of distribution, it must take into account that it will be limiting its sales in a certain way. However, there are many reasons for choosing this method. The most common ones are related to reducing distribution costs or becoming a more exclusive brand.
An example of selective distribution could be what the Apple brand does. They usually have a limited number of stores and only in strategic points close to their target audience.
Definitely, knowing what is the square in marketing is very interesting, isn’t it?
This is a modality that restricts the distribution of a product to only one type of intermediary. This works for high value products where only one point of sale is included in the distribution channel to drive sales.
The sale of automobiles is the best example of this marketing place strategy, as it is done only through exclusive dealerships and showrooms.
what are the benefits of a good marketing place strategy?
At this point, it should be clear to you how important the marketing place is for the growth of a company. Throughout the article we have mentioned superficially what are the benefits of thinking about the distribution channels and the places where a product or service will be taken, especially when we explained what the marketing place is for.
However, we think it is necessary to go a little deeper into what a company can achieve when it applies a good marketing place strategy. Of course, this works organically in the system of the 4 Ps of marketing, and it is necessary to apply strategies on the product, price and promotion.
Start taking note, because these are the three main benefits of planning a marketing place strategy.
The brand achieves greater reach
The first thing to do when designing a marketing place strategy is to study the distribution channels and think about how they can be optimized to bring products and services to the public.
Therefore, it is natural to increase a brand’s reach. The better a company’s distribution channels are, the easier it will be to reach the public and generate conversions.
In addition, the effect of good marketing place planning is also reflected in increased brand recognition. Even if the conversion rate is not so high, there are gains to be made, because a person who already knows the products offered by a company can move more easily through the sales funnel.
Production is optimized
When you don’t have a clear idea of the size of the audience you are reaching, you tend to make mistakes in production planning. So we also need to talk about how useful the marketing square is in adjusting and monitoring a company’s production rate.
This, in addition, helps to improve the use of the budget you have to cover operating costs. why? Because you can be more precise when calculating the amount of raw materials to be used for a month’s production, for example.
The idea is that, based on the data obtained from the marketing strategy, you can determine what the monthly production level will be. Although this is not an exact science and you will always produce more than you plan to sell, it helps to have a better view of where the company is headed.
Considering the two benefits just mentioned, there is a calculation that can be made almost automatically. If more product is sold and a company’s operating costs are reduced, the only possible outcome is that the company will increase its profitability. all this for planning a marketplace strategy in marketing?
Let’s see how important the marketplace is for increasing profitability with a very simple example: a company that sells cell phone batteries and diversifies the distribution channels it uses to sell its products can strengthen the offer it makes to its customers, since it ensures that it will have the product in the place, at the time, and in the quantity it needs.
In this sense, the risk of customers looking for another supplier to meet their demands is reduced. Customer loyalty is one of the elements that contribute to the profitability of a company, and with a good marketing strategy it is easier to achieve it.
how does place work in digital marketing?
Throughout the article, we have learned what is the square in marketing, the types of squares that exist and some distribution strategies. However, it is equally important to know how a digital marketing square works, since, currently, it is possible that it is the most used.
The digital marketing expert, Noel Nuez, discusses in the online course Digital Marketing from scratch the current importance of the correct management of networks and websites. Nuez explains that creating a digital marketing plan is not complicated, it only involves adding certain aspects of the digital world to our traditional marketing idea .
It is important to consider that it will depend on the industry you are in; for example, there are certain businesses that benefit more from the virtual world and it is better for them to invest in a digital marketing place, while for other entrepreneurs it is not a significant advantage.
So what are the benefits of learning what the digital marketing marketplace is and how to use it, which distribution channel is most likely to capture leads or generate sales? Let’s find out.
The main advantage of learning about digital marketing squares is the possibility of increasing interaction with your customers. Platforms such as social networks, online forms, emails, etc., have added new ways of interacting with the customer and have changed the way modern business is conducted.
In this way, you will not only get to know in depth the tastes and concerns of your audience, but also turn the digital experience into something more intimate and close that will produce loyalty to your brand.
Knowing what the digital marketing square is and how to take advantage of it, you can do the following:
Instantly respond to users, whether on Facebook, Instagram, Twitter or another social network where you have a company profile.
Connect with the user and build user loyalty through dynamic strategies.
Receive immediate feedback.
Another main advantage of the digital marketing marketplace is the ease with which everyone can access your products. Today, thanks to the internet, everyone is connected at almost any time, whether by cell phone, computer or tablet.
By having an audience connected 24 hours a day and 7 days a week, it is essential that your brand is accessible at any time. This means making it easy for your target audience to find you online and, of course, offering them a unique browsing experience.
Websites that display interactive ads.
Search engines that highlight shopping ads.
Google search results.
Social channels such as Facebook, Instagram, Pinterest, etc.
With so many digital avenues available to reach users, businesses can personalize the experience. This can be based on behavior, demographics, preferences, etc. Undoubtedly, making your products affordable to users at a time and place that is most convenient for them will give you a competitive advantage. That’s why it’s so important to know what place is in digital marketing.
However, we are aware that there is a long way from words to deeds. It is not enough to create a website or sell your products online. If you really want to make an impact, it is necessary to know the market and your clientele .
To do so, you can ask yourself the following questions:
have you researched where your target market is looking for your product?
where are consumers actively searching? in a physical store? or online?
do you have access to the medium or channel? do you have experience and knowledge of how these channels work? can you optimize the efficiency of these distribution channels?
where are your competitors most active? are they using a channel that you are not?
Remember not to use just one digital marketing venue to distribute your products. If that channel fails, then the entire campaign fails. Be sure to include a number of channels to reach a wider audience and get feedback on user interactions. create an integrated marketing approach!
Books to learn more about the marketing square
Although in this article we explain in detail what is the marketing place and how you can use it to improve your business strategy, the best way to learn is always consulting information from books or taking some courses on the topics that interest us.
At this point we want to tell you which are the books you can use to learn more about the marketing place in particular, and about the marketing strategies that are more effective for business in general.
Essentials of marketing: a marketing strategy planning approach
This book is one of the most important on our list, especially because its authors include E. Jerome McCarthy, who optimized the concept of the marketing mix and spoke for the first time about the 4 Ps of marketing, including the marketing place.
In fact, this book devotes an entire chapter to talk about what the marketing place is and gives us some examples of how some of the largest companies in the world have successfully applied it. If you want to learn more about the subject, this will undoubtedly be a book that will help you a lot.
The famous American economist Philip Kotler is also a good reference to learn about the marketing place, although his book deals with the subject in a more general way than Jerome McCarthy’s book.
The book is quite extensive, it has 834 pages in which he talks about marketing theory, and gives us information about the strategies that should be used to optimize the marketing of products and services, including the marketing place.
Digital marketing strategy: an integrated approach to online marketing
In one of the last points of the article we had mentioned that the meaning of the marketing square has adapted to the changes brought about by the arrival of social networks and other digital marketing channels.
The book is loaded with examples of the marketing square that you can use as a reference to design your marketing strategies. With the help of this text you will be able to optimize your company’s processes and improve its profitability.
Although this author has a different vision than most of the texts we consult to write an article, it is still a very good reference to learn about the marketing square, especially in the digital aspect.
we have reached the end of the article! We hope that all the information is very helpful to you. Now that you know what the marketing place is, you can take full advantage of it to distribute your goods or services and boost your profits.
Likewise, we are sure that you will choose an ideal marketing strategy that will make you stand out from the competition. No doubt you will captivate everyone, good luck!