THE MARKETING MIX IN RELATION TO THE Stages of Distribution Channel

BUSINESS OPPORTUNITY
a. Channel 1 -two stages between
7Ps of Marketing Mix producer and consumer (wholesaler
and a retailer)
o Product
b. Channel 2 -contains one intermediary
-refers to any good or service that are produced c. Channel 3 -also called “direct
to meet the consumer’s wants, taste, and marketing” manufacturer sells directly
preferences to customers
o Price
Goods
-value of money in exchanging for a product or
a. Consumer Goods service
- Demand for consumer for
consumer “direct demand” a. Buyer is willing to pay
- Number of buyers is great b. Seller is willing to accept
- Buyers are found scattered in c. Competition is allowing to be charged
different parts of the
Different Pricing Strategies
country/world
- Buying is much influenced by 1. Penetration Pricing- priced charged for
emotions product and services is set artificially
b. Business Goods low
- Demand for business “derived 2. Skimming Pricing- company charges a
demand” higher price then slowly lowers the
- Only limited buyer price
- Found concentrating in certain 3. Competition Pricing- seller uses prices
regions only of competing product as a benchmark
- Cannot be influenced by 4. Product Line Pricing- practice of
emotions reviewing and setting prices for multiple
products
Services
5. Bundle Pricing- act of placing several
a. Consumer Services products/ services together in a single
- Lawn Care package and selling for a lower price
- Hair Styling 6. Psychological Pricing- setting prices
b. Professional Services slightly lower than rounded numbers
- Engineering 7. Optional Pricing- main product does not
- Accounting have many features (priced low)
- Consultancy 8. Cost Place Pricing- adding a markup to
o Place the cost of goods and services
9. Cost Based Pricing- fixed sum/
-Also called distribution channel, location where percentage of the total cost is added
the buyer and seller exchange goods or services 10. Value Based Pricing- set primarily on
consumer perceived value
 o Promotion Sales Promotion Technique

-Complete set of activities, which communicate  Free Gifts

the product, brand or service to the user  Free Samples
 Free Trial
Promotional Mix- most common medium in
 Customer Contest
promoting a product
 Special Pricing
A. ADVERTISING E. Direct Marketing
1. Radio- gives the advantage of selecting - Promotional method that
the territory and audience involves presenting information
2. Television- latest and fast developing
Forms of Direct Marketing
medium of advertising and getting
increased popularity  Brochure
3. Electronic- advertise electronically  Coupons
through your company websites and  Catalogs
provide important and pertinent  Email
information to clients and customers  Fliers
4. Word of Mouth- most credible forms of  Phone calls
advertising because a person puts their  Newsletter
reputation on the line  Text message
5. Generic- promotion of a particular  Post cards
commodity is without reference to a o People
specific producer, brand name or
-Consist of each person who is involved in
manufacturer
the product or service whether directly or
B. Public Relation or PR
indirectly
- Article that features your
company is not paid o Packaging
C. Personal Selling
- Occur when individual -Silent hero in the marketing world, outside
salesperson sells a product, appearance of a product and how it is
service or solution to a client represented to the customers

5 Stages Personal Selling Produces Five Basic Functions of Packaging

1. Prospecting 1. Protection -provide for the effects of

2. Making First Contact time and environment for the natural
3. The Sales Call and manufactured products
4. Objection Handling o Positioning
5. Closing Sale -A set of controllable and connected variables
D. Sales Promotions
- Any initiative undertaken by an
organization to promote