The following lecturette will give you my perspective on what I think are
the key course concepts from this week's text readings.  As usual, it truly
is my objective not to restate the author's views, or merely to summarize
the readings.  Rather, I'd like to introduce some new concepts (sometimes
challenging our author's viewpoints) and hopefully, creating a thinking and
applications process/dynamic which will enhance our learning.

How about the "P" of Place (or distribution). Well, for a marketer, this has
been traditionally the most boring "P" to teach.  After all, distribution
channels traditionally haven't changed much over time.  Products get
manufactured, go through wholesale channels, distributors, retailers and
then, on to the consuming public.

However, because of the information processing capabilities available today,
marketers have the ability to target customers directly and deeper at the
same time (sounds like application of that famous funnel again), thus
bypassing traditional channels of distribution.

As has been discussed previously, there are many many competitors in our
industries all offering similar or "parity" products and fighting price
wars.  Because pricing issues have become central and pure  "product"
differentiation cannot yield long term sustainable distinct competitive
advantage, marketers of all types of products and services have seen steady
declines in profit margins.  Sadly, this is the root cause of downsizing,
rightsizing, or whatever you want to call this decline in loyalty to
employees.

The smartest of marketers are seeking answers today to the problems of non
differentiation, price wars and the powerful clout the retailers have over
them (demanding co-op advertising, volume rebates, etc. all while placing
their own "store brand" items right next to them at significantly reduced
prices).

Is it possible today to take back control, to bypass traditional channels of
distribution, to go direct to customers?  The answer is yes and that's what
makes the "P" of Place so exciting in today's marketing strategy.
Catalogues, internet sites, T.V. shopping, and home delivery are just a few
examples.  The phenomenon I'm describing is also know as Direct Marketing
(we will see a second type of direct marketing when we begin our discussions
of Integrated Marketing Communications, or IMC  next week).

Simply remember that technology has enabled easy entry of competition into
almost any industry.  This ease of entry has created a proliferation of
competitors (all with very similar products and services).  This lack of
differentiation breeds price wars and transfers all the power to the
consumer (ah, again we see the paradigm shift to a customer driven
marketplace).

Bottom line.....   Marketers today are faced with the challenge of
identifying and enabling new and creatively different channels of
distribution (in most cases finding ways to bypass traditional channels).