Page 4: Place
Though figures vary widely from product to product, roughly a fifth of the production cost of an item goes on getting it to the customer. The term 'place' deals with various methods of transporting and storing goods and then making them available to the customer.
Getting the right product to the right place at the right time involves the distribution system. Distribution is the process of moving goods and services to the places where they are wanted.
There are a number of ways in which Motorola distributes its phones. If you want to buy a Motorola mobile phone there are a number of distribution channels that you can use. Many people like to buy phones from independent retailers such as Carphone Warehouse. These can offer advice about a variety of different phones and suggest the one best suited to your needs. A second source is a retail outlet belonging to a network provider such as Vodafone.
Nowadays, increasing numbers of people buy through the Internet. This is an example of e-commerce. The great thing about buying online is that you can spend as long as you like and examine a lot of information. You can buy a Motorola phone from the Motorola website. It will tell you about different models of phones, their prices and features etc.
An advantage of buying online is that prices are typically cheaper because you are cutting out the middle person. The site is managed for the company by a third party who processes the orders and delivers the mobile phones/accessories to customers.
The place where you are able to buy sometimes depends on the product. Some companies like Motorola often give exclusive offers to certain retailers. For example, when Motorola first introduced the pink RAZR in the UK, it was exclusively available through Carphone Warehouse. In contrast, 3G phones ,are mainly sold through retail outlets of 3G networks. The reason for this is that the product fits closely with the distribution channel.