An Introduction to Place
The places where businesses conduct transactions have evolved over time. Over the years, selling products has grown from an in-person experience, to over the telephone, and now to the internet. This evolution has also opened the door to an expansion of the marketing definition of “place,” which now includes distribution channels. In fact, place has come to signify the ways in which a customer has access to purchase products, and the convenience with which the consumer can gain that access. The reason that “place” is so important to marketing is that customers need to be able to access a business and its products, and this expanded definition of place better fits modern applications of the marketing mix.
Marketing Channels
To understand the evolving identity of “the place,” one needs to know the basics of marketing (distribution) channels. A marketing channel is all the plans and actions required for goods to flow from production to consumption. In simpler terms, a marketing channel is the way products (goods and services) get to the end-user, the consumer. This definition makes the alternative name, distribution channel, make more sense. It is all about how a product starts with a producer (manufacturer), and how many businesses it touches until it reaches the final consumer. There are typically many levels of marketing channels a given product will go through before it reaches the end user.
Producer - Consumer
Producer - Retailer - Consumer
Producer - Wholesaler / Distributor - Consumer
Producer - Agent / Broker - Wholesaler / Retailer - Consumer
The first level is the producer (manufacturer), which is the business that makes the product. For decoration businesses, the producer is the blank product/apparel manufacturer. The product is then purchased by either a retailer or product decoration business to be resold to consumers, or sold directly from the producer to the consumer. Marketing channels that consist solely of producer-to-consumer transactions with no intermediaries are referred to as direct channels of distribution, which are quite uncommon in the product decoration business.
Marketing channels that involve intermediaries between the producers and consumers are referred to as indirect channels of distribution. It is not uncommon for a custom decoration business to use an agent/broker to bring the business clients or orders in exchange for a portion of the profit from a sale. Agent/broker transactions typically come with less profit, but they often come with much higher volume. Working with an agent/broker who is familiar with the decoration industry can lead to a lot of new business that would not have been obtainable otherwise.
Brick and Mortar Locations
Most decoration shops operate out of a brick and mortar location. Having a retail location allows for a product decorator to meet with customers, provide samples, and give a more complete understanding of the business’s capabilities. A decoration business can also have a physical presence with a kiosk. A kiosk is a small stand, either open or enclosed, where a business can display and sell its products. Embroidery and design kiosks are common in shopping malls and outdoors in areas with heavy foot traffic, like boardwalks and parks.
Regardless of whether it is a brick & mortar location, a kiosk, or even a website, most businesses who sell products need to have a storefront. A storefront is the entryway to a business, usually including the business’s name and/or logo, design elements, and product displays. The storefront should also include clear and attractive signage to tempt potential customers, and make the store easy to find. An attractive storefront is important, especially for physical locations with good foot traffic because it can influence potential customers to enter the store and shop.
How to Lay Out a Brick & Mortar Location
The store layout, which is the way that stores use floor space to facilitate and promote sales and serve customers, is one of the chief components of visual merchandising. The way in which the store is organized can have a big impact on customers’ decision making process, even if only subconsciously. Everything from the location of racks and displays to the lighting of the space plays a part in the store’s visual merchandising. The location of fixtures is typically calculated to allow freedom of movement for customers while also directing them to walk past certain fixtures.
In addition to the layout, the retail atmosphere is also important in visual merchandising. Retail atmosphere consists of the physical characteristics of a brick and mortar store used to create an image or feeling in order to attract customers. The atmosphere should be consistent, with matching colors and paints and complementary lighting. Product decorators must have the store laid out so that they illustrate everything they are capable of producing without overwhelming the customer with choices. Product decorators that also use their retail space for production must also find a way to separate the two so that production does not interfere with the retail atmosphere.
An Introduction to E-commerce
E-commerce is growing rapidly, and visual merchandising still plays a major part in that success. E-commerce, also known as electronic commerce, is the process of selling or trading products through electronic media. Visual merchandising for ecommerce is naturally different than it is for retail stores, as there is no physical space to design. Rather, the task of online visual merchandisers is to make a business’s website as visually appealing as possible. A website is a location connected to the Internet that maintains one or more pages on the World Wide Web.
One key for effective online visual merchandising is using high-resolution photographs of products. The best way to display products on a website is through clear, clean pictures that truly highlight the form of products, as well as their decorations. Using models or product mockups is another effective technique, whether the model is wearing a garment or holding/using a product. Including video advertisements or product demonstrations is a great way to engage the customer visually on a website while providing them with information about products. It is also a good idea for product decoration businesses to educate their customers about the decoration processes they offer. The actual layout and design of the site is also naturally quite important. Simple, attractive website designs are typically more effective than complex designs with bells and whistles. Much like with retail visual merchandising, the products and the decoration should be the highlight of the experience, not the website itself.
E-commerce offers several advantages over traditional brick and mortar retail locations. The first is that a website is open 24/7. Websites can generate sales and represent a business’s brand at any time of day, something that is expensive for a brick and mortar location. Fewer overhead costs is the next advantage that websites have over brick and mortar locations. For a website to run 24/7 all that is needed is server space and an occasional interaction by whomever manages the site. For a business to run a brick and mortar location 24/7 it must pay more in utilities, labor, insurance, and other costs. Also, walk-in customers can be a distraction and a waste of time and money for product decoration businesses. They take up more time than most other customers, and often only for small orders. Another benefit only websites can provide is the ability to reach consumers wherever they go. With the popularity of smartphones and other mobile devices, consumers can visit a business’s website at home, on the road, or wherever else they may be. Websites also make businesses available to far more consumers than a brick & mortar location because they are not limited to a certain geographic location.
Conclusion
The places where products are sold and distributed are critical elements of a product decoration business’s marketing strategy. As part of the marketing mix (along with product, price, and promotion), the places related to a product provide businesses with an opportunity not only to generate sales, but also to promote the product, the business, and its brand. Places can take many forms, whether they are retail locations like stores or kiosks, or e-commerce locations like business websites and online marketplaces. Regardless of the type of place, product decoration businesses should do their best to maximize the appeal of the places through which their products are sold and distributed.
