Introductory Lesson




  Marketing

The fourth P, Place, is driven by the Marketing Department's sales budget.

The sales budget builds the sales force and distribution system, which creates accessibility. Without a sales budget, a product will lose 33% of its accessibility from one year to the next. While sales budgets are allocated per product, the accessibility percentage applies to the segment, not the product.

Like awareness, 0% accessibility does not imply 0 sales. If two products have identical attributes and price, but one has 100% accessibility and the other 0%, the product with 100% accessibility will out sell the other 2 to 1. A product's sales budget reaches diminishing returns at about $3 million. If teams have two or more products in a segment, each will contribute towards accessibility, but the combined budgets reach diminishing returns at $4.5 million.