Place is all about where you sell your product. This will be a combination of where you are and where your customers are. Hopefully you are close to your customers otherwise it will be costing extra money to get your product to your customers.
There is more to place than just that. We also have to consider the distribution network we use to get our product to our customers. This may be through sales reps, postal services, retails. There are thousands of ways to get your product to your customers.
If you are a small business my suggestion is to be where your customers are and as you grow you can expand and then consider using other forms of distribution. I also suggest you get onto the internet and sell your product through your website. It is very easy to set up and doesn't require a big budget. By being on the internet you can reach anyone in the world without have to be where they are.
Place is a very easy step and I find most people get this part right. As you grow it becomes more and more difficult.