'Place' in the marketing mix refers to where and how a product will be distributed to the customer. It ensures products are available at the right time and place, creating customer value.
Consider a customer in the US visiting a Patagonia store. He benefits from the ability to interact physically with and instantly purchase products. The store's location ensures accessibility, creating value for the customer.
On the other hand, with the advent of the digital era, 'Place' has evolved to include online platforms, including websites and third-party e-commerce platforms.
A customer in Australia ordering from Patagonia's user-friendly website experiences Place digitally.
Despite geographical and platform differences, Patagonia's efficient distribution network, including farms, factories, and intermediaries, guarantees timely home delivery, providing value through convenience.
In both scenarios, the 'Place' strategy ensures that the products are easily accessible everywhere, highlighting the significance of a value delivery network.
This network, comprising the manufacturer, suppliers, distributors, and customers, ensures seamless product flow from production to consumption, enhancing customer value regardless of the manufacturing and customer location.