Another important element of the marketing mix is place mix, which focuses our attention on the offering of services by the providers to the ultimate users and the place of location for the service generating organizations. In some of the cases we find that providers have no option but to locate the units/branches as per the instructions of the apex body. Some of the essential features are taken into consideration such as easy and convenient accessibility, safety or protection availability of the infrastructural facilities, attractive and healthy surroundings or so.
Due to the intangibility, services cannot be stored, transported and inventoried. Hence the traditional channels of product marketing like wholesalers cannot be used. Even retailing cannot be an independent activity. Similarly because of inseparability they have t be produced and sold simultaneously.
Due to this the channels of distribution are made very short. At the most there can be one agent like in the case of insurance, travel agency, courier eye.
The better thing is direct selling.
Agents when employed can have two types of functions – either they market the services like travel agents, insurance agents etc, who market the tangible part of the service offering OR there can be agents who are trained to provide the service Like a Shahnaz Hussain Beauty parlour.
Further as there is no actual transfer of ownership, the creation of time and place utility is very important. Hence proper location to cover maximum customers becomes important. Banks often have extension counters or use money collectors.
8 Comments