International Marketing in Germany – From a cultural perspective

2.2.4
 
Place 
Finally the last P in the original marketing mix represents the place. Kotler et al. define place 
as: 
“All the company activities that can make the product or service available to 
target customers.”
38
 
The place mix includes tools like distribution channels, coverage, assortments, locations, 
inventory and transports. A company can either sell its product on its own or it let someone 
else do it. This means that for a company to succeed the entire marketing channel needs to be 
successive and competitive. The choice of distribution channel is one of the most important 
decisions that a company makes since it is the link, where the product is sold, between the 
company and the target market. It also affects every other marketing decision such as pricing 
for example if using mass merchandisers or high-quality specialty stores.
39
Coverage refers to, to what extent the market is covered, it can be geographically as well as in 
what kind of stores the product is sold, for example luxury stores or budget. Assortment is 
defined as the selection of products. Location is defined as where the product can be bought. 
Inventory includes how the store is furnished.
40
Transport is defined as how the product gets 
transported to the store.
41
2.2.5
 
Extended Marketing Mix 
However, there have been attempts to extend the original marketing mix with more Ps. Kotler 
introduced another two Ps in respectively, 1984 and 1986 standing for power and public 
relations. He recognized the need of power and public relations due to the need of satisfying 
other parties such as governments, trade unions, and other interest groups than the target 
36
Kotler, P. et al., 
Principles of Marketing,
(2005), p. 719 
37
Ibid, p. 720 
38
Ibid, p. 34 
39
Ibid, p. 858 
40
Ibid, p. 885 
41
Ibid, p. 886 

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15 
market. This need comes from increasing competition leading the companies to 
internationalize. According to this extended view, previous uncontrollable external factors 
like political environment are no longer regarded but need to be handled like the rest of the 
marketing mix.
42
Furthermore, Magrath has defined another three Ps: personnel, physical facilities, and process 
management applying to service business (See figure 2.3). They are important tools when 
making a tactical marketing plan for service businesses.
43
“When service businesses try to develop marketing and tactical programs around 
the four Ps, one of the fundamental difficulty they encounter is making the four Ps 
fit the nature of their operations. The four Ps ignore important service marketing 
realities: namely personnel, physical facilities, and process management. These 
three Ps are interconnected and represent vital marketing elements in the 
management of service business”
44