Many business organizations today use both the space and the place marketing strategy for their products and services in the various market segments. According to Valck, Bruggen & Wierenga (2009), Space strategy is the technique which makes the use of the digital technology, while place strategy is where the physical presentation or displaying of goods and services is done.
Marketing Implication of both the Space and Place Presence
For a business to use the strategies in a particular market segment there has to be availability of proper facilitating factors for both of them. For instance, there has to be media network coverage for the case of space marketing. While in case of place marketing, there should be a good infrastructure to enable accessibility and distribution of products and also the shopping stores. Additionally, for the place marketing, the stores buildings must be located in potential customer accessibility areas with appropriate security (Valck, Bruggen, & Wierenga, 2009).
Saxena (2009) notes that in every market segment, the business organization should ensure that both the application of space and place strategies is well balanced so as to meet the sales target. This is done by ensuring that most preferred method by the potential customers is practiced most of the times. For instance, some customers may not prefer the space techniques either because they do not trust the dealings over the Internet or they do not have the ability to use the technology involved. In such a case, the business should know and make more use of the place technology which can be more reaching to the customers. Moreover, the marketing organization of its products should also account various strengths and weaknesses associated with either the strategies for proper establishment of both or even just one of them.
Strengths and Weaknesses of Space Marketing and Place Marketing
For the space marketing, the cost of delivering information is lower since it can reach a large number of people in different places without having to open sales stores. It also has a wide coverage since the media technology is almost everywhere in the world. Additionally, it enhances comparability of the same products from different producers since the customers can easily get the information without having to move from place to place. Valck, Bruggen & Wierenga (2009) also noted that change in details of a product can easily be communicated to the customers. Finally, marketing company utilizing the space marketing technologies will not have to employ so many people to operate as marketers since the digital technology only requires a few people.
However, there are some shortcomings associated with the use of space marketing. It is noted that the use of technology such as websites is still new and not known to many potential customers. Therefore, it makes it difficult for information to reach them. Valck, Bruggen & Wierenga (2009) observe that some customers may also not be satisfied without the physical appealing of the product. Finally, it is also noted that in case of an error in information, a lot of customers can be mislead.
On the other hand, Saxena (2009) notes that in the case of place marketing, the products and services sold have the physical appeal and, hence, are more enticing to the potential customers. She added that the market place strategy is very appropriate for the potential customers who do not trust the space technology. Additionally, Valck, Bruggen & Wierenga (2009) observe that the technology also ensures a faster delivery of goods and services to the customers. Finally, with the technology, in case the customers lack all information regarding the products of other producers, they may remain very loyal to a particular firm.
However, Valck, Bruggen & Wierenga (2009) indentify a number of disadvantages associated with the place marketing. They note that it is geographically limited and thus accessibility by the potential customers is limited. It is also noted that change in products details can not easily reach the customers since one has to physically visit the selling store before he or she can get the information. Additionally, in order to establish a store for selling the products, one has to spend a large amount of cash unlike in the case of space marketing where everything is done through media. Finally, the technology requires the business organization to do a physical survey of a new markets before they start to operate and hence a lot of time wastage.
Concerning the movement of customers from one market operation to the other, Valck, Bruggen & Wierenga (2009) observe that customers can effortlessly move from one marketing channel to another depending on the challenges and benefits from the two of them. When the customers have learnt of the two channels and assessed their conveniences, they will then effortlessly adopt the more convenient one.
Behavior of the Segments
According to McDonald & Dunbar (2004), market segments are small groups of the market that share similar characteristics like age, geographical location, and lifestyle of the consumers. These market segments can all enjoy using both the technologies since they contain different kinds of people. However, according to Valck, Bruggen & Wierenga (2009), some places may experience some challenges that can limit an organization to only use one method. For instance, in the places where the use of technology is not known, the customers in such segments will exclusively use the place method of obtaining goods.
According to Saxena (2009), some of the companies which have successfully applied space and place presence include Wal-Mat, General Motors, and British Petroleum.
Since different customers have different shopping styles, it is, therefore, important for the business organizations to make use of both the space and place presence in order to capture the whole market intended.