Chapter 13
Marketing Mix: Place & Distributior
Channel of Distribution:
How the goods get from the producer to the final consumer
4 channels of Distribution: Producer, Retailers, Wholesaler, Agent
Wholesaler and retailer are called middlemen.
Selling directly from producer to consumer is known as direct selling.
Factors Influencing Best Method of Distribution
o Cost. Does the business own its delivery vehicles or does it depend on anothers business
to do this?
o Nature of the Product. Some goods can easily be damaged such as TVs and
vegetables/fruits. Cheaper alternatives can be costly.
o The market. Big markets that cover a wide area is best served by wholesalers, retallers
than by selling directly to the consumer.
Promotion
Promotion are marketing activities used to communicate with the customers and persuade
them to buy a business product . The aim is to increase sales
● Attract the attention of the consumer
● Persuade consumer to buy
● Point out the differences and how the product is better than that of the competitor
● Make the brand image stronger
● Encourage retailers and wholesalers to stock the market
● Reassure consumers in case there's a problem with a product
Methods of promotion
● advertising : done through media such as newspapers , magazines , radio , television
and internet depending on budget available
2 kinds of Advertising: Informate and Persuasive
Informative is usually done for new markets while persuasive (most common)adverts try to
convince the consumer to buy their product. Above-the-line vs Below-the-line promotion.
● Sales Promotion. Known as below-the-line promotion (not paid) but uses incentives
instead.
Includes money-off coupons, point of sales displays, loyalty reward scheme, competitions
and games with cash or prize:
● Personal Selling. Used in selling expensive items such as cars that have high profit
[Link] is expensive to hire staff and provide them with commissions.
● Direct mail. Involves providing printed material to consumers that have been targeted
through market research. Cheap but considered junk mail of the time.
● Sponsorship. Paid promotion where a business will pay to have its name/brand
linked to an event. Soccer Worldcup sponsor for example.
Technology and marketing mix
E-commerce: using the internet and other technologies to market goods and services to
consumers.
Opportunities of E-commerce for Businesses
● Sell to consumers throughout the world
● Reduce cost
● Informatiòn available at fingertips
●
Threats of E-commerce for Businesses
● Competition from all over the world
● Consumers less likely to buy from unknown sellers
Opportunities of E-commerce for consumers.
● Comfort , convenience and ease
● Wider choice of goods
● Lower prices because of competition
● Consumers are able to read about product and reviews
Threats of E-commerce for consumers
● risk of fraud
● Risk of hacking
● No face-to-face interaction
● Returning items can be inconvenient
Others forms of promotion can be done through paid ads on websites (pop up banners ) or
through the extensive use of social media (social media marketing )
Above the line vs Below the line advertising
Above the lin e (ATL) and below the line (BTL) advertising are two different approaches to
marketing with distinct goals and methods. Understanding the differences between them can
help you choose the right strategy for your brand
Above the Line (ATL) Advertising:
● Focus: Brand awareness and building a positive brand image (mass)
● Channels: Mass media like television, radio, billboards, and print publications
● Examples: A Super Bowl ad, a billboard on a busy highway, a magazine ad
+ Pros: Reaches a large audience, builds brand recognition, creates a strong brand image
- Cons: Expensive, less targeted, difficult to measure ROI.
Below the line advertisement (BTL )
Below the Line.(BTL) Advertising:
● Focus: Promoting specific products or services (niche)
● Channels: Targeted activities like direct mail, email marketing, events, sponsorships,
and social media marketing
+Pros: More affordable, highly targeted, can build stronger customer relationships
-Cons: Doesn't reach as large an audience as ATL, may require more creativity and effort