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Place – 2 Guyz On Marketing http://2guyzonmarketing.com What happens when two marketing pros get together and talk marketing and advertising shop! Thu, 15 Aug 2019 16:12:26 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.1 Revisiting Place (From the 9 P’s of Marketing) http://2guyzonmarketing.com/revisiting-place-from-the-9-ps-of-marketing/ Thu, 15 Aug 2019 16:12:24 +0000 http://2guyzonmarketing.com/?p=693 As The 2 Guyz On Marketing, we believe many people think that Marketing = Promotion and Promotion equals Marketing. Exclusively. But to The 2 Guyz On Marketing, “Place,” distribution and channels of distribution, are vitally important elements under the nine P’s of Marketing.

Place is where the company’s activities are, where they make the product available, using distribution and trade channels, roles, coverage, assortments, locations, inventory and transportation characteristics and alternatives.

Can your customers find your product? Is it someplace easy? Convenient? Nearby? Online?

How can customers, clients or users see or know the difference between your product or service and your competition, if they can’t find it? Have you looked at the “true” cost of free shipping in e-commerce?

Do the potential customers (Potential customers are “People” in the 9P’s equation) know about or are they aware of your product or service? Why is your product or service better at a given location? Or is it a “lesser brand” if it’s not there? (For example, many fast food restaurants have contracts with soft drink companies, and limit or eliminate competitive brands.)

The 9 P’s/9P’s of Marketing can be used successfully by product companies, service firms, for profits entities and nonprofits “selling” directly or indirectly to consumers (B2C), to marketing intermediaries (such as industrial, consumer, retail, wholesale and professional channels of distribution), and to other businesses (B2B).

We teach excellent Marketing is the offering the right Product to the right People, at the right Price, with the right Partners and Presentation, at the right time, at the right PLACE.

Marketing managers consider, develop and review store and non-store, e-commerce and “brick and mortar” factors, considerations, objectives, strategies and tactics, including “Partners.”

Look at some of the factors in developing an effective and efficient distribution plan, objectives, strategies, and tactics, all the way through execution.

  • Channels of distribution.
  • Shipping options
  • Considerations in and for an effective distribution network and partners.
  • Channel partners. Identify and specify the roles of distribution partners and members, within the integrated strategic distribution strategies.
  • Develop geographic strategies.
    • Develop and review financial conditions of partners, perishability, installation, maintenance and use of technology. Regarding technology or technographical characteristics. Understand your potential partner. Remember, in the back of your mind, that the reason technology is phenomenal is because it displaces years, or centuries, of previous technology. Partners and your consumers may or may not have the skills. Think employees here too. The reason technology skills are transitory is because they will almost certainly be displaced, too.

A typical supply chain may consist of four links in the chain:

  • Producer > Factory > Manufacturer >
  • Distributor > Wholesaler > Retailer >
  • Consumer (supplying the ultimate users)

Here are “Place” examples from the 2 Guyz on Marketing. 

  • Delivery-company executives have found that discounts and promotional offers attract users and encourage them to order more frequently, but those promotional offers lead customers to hop from one service to another. They are looking for better or best offers, with little loyalty. Research has found that younger users lack loyalty or displaying reliability in next or repeat purchases. They want and look for a better deal or offer.
  • From Phil Knight of Nike: “Supply and demand is always the root problem of business. It’s hard enough to invent, manufacture and market a product, but then there are the logistics, the mechanics, the hydraulics of getting it to the people who want it, when they want it—that is how companies die…”
  • It was reported that Subway was selling 80% of its new franchise locations to existing franchisees. More than half of the locations are non-traditional including schools, zoos, military bases, plus hospitals. Where there are “captive audiences,” or under “People.” (Bloomberg.com and subway.com)
  • This example would fall under both Place and Promotion: There are 210 markets in the U.S. TV advertising marketplace. (Nielsen)

 Place is more than just distribution. The smart marketer should explore all the different aspects of place: where is the brand made, where is it distributed, where is the competition, where is the competition missing from, where are the customers, where do they live/shop/buy…all critical questions related to Place.

For more Marketing insights, ideas, concepts and Marketing solutions: Go to Londremarketing.com and look under “Articles and Resources” and the 9P’s/Nine P’s . Created by Larry Steven Londre. Copyright 2007.

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Marketing Convenience: The Drive Thru vs. The Environment http://2guyzonmarketing.com/marketing-convenience-the-drive-thru-vs-the-environment/ Wed, 22 Aug 2018 16:08:04 +0000 http://2guyzonmarketing.com/?p=537 Do we really need more Drive-Up Windows? Cars running. And running. What about the Environment?

In 1971, Larry, one of the 2 Guyz on Marketing, took a class at USC called LAS 430, Conservation & Natural Resources.  I remember being part of a discussion on drive-thru windows.  It was mostly negative, for the environment — how the drive thru window at that time used up valuable resources. (For those not around yet, this was just before the “gas crunches” of the 1970s.)

The drive up windows didn’t seem very ecological then. They were marketing “convenience”, not conscience.  With all of the Starbucks and fast food operators now, the situation, from the environmental point of view, is even worse.

If we look at consumer desires, needs and wants, most people, and leading the charge Millennials living in major cities, prefer try to use the quickest and most convenient way when it comes to ordering their food at restaurants. Apps, kiosks, and online have become commonplace. Ironically, it’s mostly Millennials that say they want to only shop with companies that are pro-environment.

Drive-thru shopping has become a part of many daily routines. And the drive-thru’s are morphing. Now we have “customer pickup” zones, sometimes curbside, sometimes special parking or loading zones: for dry cleaners, department stores, pharmacies, etc.

Visualize this: Drive thru customers and families at fast food restaurants stay in their vehicle and have the engine running. And running, during all times of the day.

Obviously the windows are more convenient than walking into the restaurant to place an order for food or beverage.

When Larry ventures within a mile in his Playa Vista neighborhood, he sees lines of cars at In and Out, Chic Fil A, McDonald’s and others. Brian has a new Chic Fil A that came in around the corner, and the lines have been 20-30 cars long, averaging 30 minute wait times from 11am to 3pm. These fast food operators and users of automobiles create negative impacts on the air quality. These idling vehicles waste gas, harm air quality, plus increase greenhouse gas emissions.

With the fast food restaurant business at their drive up windows consistently growing, customers use the drive-thru facilities, more and more. Especially in the big cities where time and convenience are major factors in the daily activities of people.

Convenience definitely makes the cash register ring. And there is an argument that drive thru’s reduce the physical footprint of a store, meaning the business needs less parking space.

The impact of online shopping is mixed in here, too. Many experts feel the Amazons and eBays of this world have had a horrible on the environment. (For more on supply chain dynamics and the impact of online shopping: https://www.vox.com/the-big-idea/2017/12/21/16805324/online-shopping-instant-delivery-greenhouse-gas-amazon-environmental-problem).

The 2 Guyz see this as a mixed benefit. Marketers will increasingly have to balance between the environment and convenience…sales and greater good. This is definitely an ethical issue hitting marketers right now.

What got us thinking was a new Nike store concept named “Nike Live.”  Their first store is on Melrose. The store is called “Nike by Melrose.”  One of its features curbside pickup service.

Just keep the auto running. Or the cash registers ringing.

 

 

 

 

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Part 6 of 9: PLACE – From the 9 P’s of Marketing* http://2guyzonmarketing.com/part-6-of-9-place-from-the-9-ps-of-marketing/ Wed, 18 Apr 2018 16:38:43 +0000 http://2guyzonmarketing.com/?p=467 As the 2 Guyz On Marketing, we believe many people feel that Marketing = Promotion and Promotion equals Marketing. Exclusively. But to the 2 Guyz On Marketing, Place, or distribution, is separate but important element under the nine P’s of Marketing.

Can your customers find your product? Can your customers, clients or users tell the difference between your product or service and your competition, if they can’t find it?

Do the potential customers know about or are they aware of your product or service? Why is your product or service better? How is it different? That’s where “promotion” come in.

The 9 P’s/9P’s of Marketing can be used successfully by product companies, service firms, for profits entities and nonprofits “selling” directly or indirectly to consumers (B2C), to marketing intermediaries (such as industrial, consumer, retail, wholesale and professional channels of distribution), and to other businesses (B2B).

It’s the company’s activities that make the product available, using distribution and trade channels, roles, coverage, assortments, locations, inventory and transportation characteristics and alternatives.

Good Marketing is the offering the right Product at the right Price, with the right Partners and Presentation, at the right time, at the right Place. Consider, develop and review store and non-store, e-commerce and “brick and mortar” factors, considerations, objectives, strategies and tactics, including “Partners.”

Look at developing steps in an effective and efficient distribution plan, objectives, strategies, and tactics, plus execution.

  • Channels of distribution.
  • Considerations in and for an effective distribution network and partners.
  • Channel partners. Identify and specify the roles of distribution partners and members, within the integrated strategic distribution strategies.
  • Develop geographic strategies.
    • Develop and review financial conditions of partners, perishability, installation, maintenance and use of technology. Regarding technology or technographical characteristics. Understand your potential partner. Remember, in the back of your mind, that the reason technology is phenomenal is because it displaces years, or centuries, of previous technology. Partners and your consumers may or may not have the skills. Think employees here too. The reason technology skills are transitory is because they will almost certainly be displaced, too.
  • A typical supply chain may consist of four links in the chain:

Producer > Factory > Manufacturer >
Distributor > Wholesaler > Retailer >
Consumer (supplying the ultimate users
)

Here’s another example or two from the 2 Guyz on Marketing.  It was reported that Subway was selling 80% of its new franchise locations to existing franchisees. More than half of the locations are non-traditional including schools, zoos, military bases, plus hospitals, where there are “captive audiences.”

Place is more than just distribution. The smart marketer should explore all the different aspects of place: where is the brand made, where is it distributed, where is the competition, where is the competition missing from, where are the customers, where where do they live/shop/buy…all critical questions related to Place.

For more Marketing insights, ideas, concepts and Marketing solutions: Go to Londremarketing.com and look under “Articles and Resources” and the 9P’s/Nine P’s ©2007. Specifically you will find them detailed at 9P’s/Nine P’s or Nine P’s/9P’s of Marketing.

*Created by Larry Steven Londre. Copyright 2007.

 

 

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Repositioning A City – A Marijuana Story http://2guyzonmarketing.com/repositioning-a-city-a-marijuana-story/ Wed, 03 Jan 2018 17:44:14 +0000 http://2guyzonmarketing.com/?p=375 Desert Hot Springs is one of those towns, close to the bright lights, but not close enough. Until now.

Desert Hot Springs grew up on the wrong side of the tracks, or rather, wrong side of Interstate 10. Palm Springs, the bright lights and big city of the area, is to the south of the Interstate.

Desert Hot Springs has long tried to capitalize on the boom of Palm Springs. Since midway through the last century, Palm Springs has gotten the attention, the bookings, the reputation, and ultimately the money. Desert Hot Springs has struggled to get even a small share. They lacked “place”, one of Londre’s 9 P’s of Marketing.

Even nearby Indio has repositioned itself as the home of the Coachella Music Festivals. That’s turning a Place liability into a major benefit!

Well, the folks in Desert Hot Springs are repositioning their town as a locale friendly to the pot business. As many cities had, they allowed medical marijuana in and it helped the local economy. Now, with recreational marijuana coming to California, they are on it again. The city council has just adopted the ruling that medical marijuana retailers may become recreational retailers as well.

Just yesterday, January 1, 2018, California began selling recreational pot. Voted in more than a year ago, it’s taken the state a year to set up departments, regulations, enforcement, and related legislation.

Much of legislation and enforcement will be left of local cities. The California Highway Patrol is also in an active advertising and PR campaign to get the word out to not smoke and drive.

An NBC news report indicated property in Desert Hot Springs has gone from $60k an acre to over $900k an acre, as hot houses and processing plants have been flocking to the area. It seems as though initial growing efforts have proven the area to be very fertile, giving the central valley growers a run for their money.

Plane-loads of Asian tourists fly to Los Angeles then bus out to the nearby Cabazon Outlet stores just to buy American goods. The LGBTQ community was embraced by the desert area years ago, which has helped the economy thrive. And Coachella, well, it’s the outdoor festival that has  become today’s music festival zeitgeist.

Who says Desert Hot Springs can’t become a new haven for weed lovers? Mind you, recreational pot will be available across the state, but that’s not the issue. Desert Hot Springs is making is easy for companies to grow, process, distribute, and sell. Heck, tens of thousands may just stop by…on their way to the river, back east, Vegas, Coachella, or just to Palm Springs.

And being so close to so much other recreation, like restaurants, golf, pools, casinos, and concerts, sounds like a marketing match made in…well, the desert!

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