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Senior High School

PRINCIPLES OF
MARKETING
Quarter 2 - Module 3
The 4Ps of Marketing:
Place and Promotion

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Second Quarter
Module 3, Week 3:
The 4Ps of Marketing - Place and Promotion

Content Standard : The essence of the new product development, pricing, placing
(distribution), and promoting a product or service

Performance Standard : Design a new product or service, decide types or pricing


approach, and choose distribution methods and promotion
tools that respond to market trends

Competency : Discuss the structure of distribution channels, its functions


and the nature of supply chain management
ABM_PM11-lla-e-18

Define and identify relevant promotional tools, namely,


advertising, sales promotion, personal selling, public relations,
and direct marketing to create awareness and persuade the
target market to buy the product or patronize the service.
ABM_PM11-lla-e-19

Learning Outcomes : Upon completion of the module, the SHS students to explain
the nature of supply chain management and Apply the
promotional strategy appropriate for products and their target
audience

What I Know

Use a separate sheet of paper. Please do not forget to write the following in your answer
sheet:

Name:________________________________________________ Yr. & Section: _________________________


Subject: _______________________ Quarter No: _______________ Module No: _____________________
Name of the Activity: What I Know Date: ___________________________

Directions: Read each of the following questions carefully and choose the letter of the correct
answer.

1. What elements of the marketing mix determine where and when the product will be available
to customers?
A. Price C. Place
B. Product D. Promotion

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2. Which of the following is the structure of a direct marketing channel?
A. Manufacturer --- consumers
B. Manufacturer --- big retailer --- consumers
C. Manufacturer --- online retailer ---consumers
D. Manufacturer --- wholesaler --- retailer --- consumers
3. Which of the following is NOT an example of store retailing?
A. Hypermarket C. Specialty stores
B. Supermarket D. Vending machine
4. Which among marketing intermediaries are best described to Mercury Drug Store and SM
Malls?
A. Agents C. Retailers
B. Distributors D. Wholesalers
5. What do you call to individuals or businesses that sell products to a firm or another vendor,
or the consumers themselves?
A. Distribution channel C. Marketing channel
B. Marketing intermediaries D. Supply chain management
6. What retail store is located near a residential area, opens long hours, seven days a week, and
carries a limited line of high-turnover convenience goods?
A. Convenience store C. Supermarket
B. Hypermarket D. Superstore
7. What do you call that handles the entire production flow of a good or service — starting from
the raw components to delivering the final product to the consumer?
A. Distribution channel C. Marketing channel
B. Marketing intermediaries D. Supply chain management
8. What supply chain management involves coordinating customer orders, schedule deliveries,
dispatch loads, and invoice customers?
A. Delivery and Logistic sourcing C. Planning
B. Manufacturing D. Sourcing
9. What consumer promotion tools do a straight reduction in price on purchases during a stated
period?
A. Coupons C. Rebates
B. Discounts D. Samples
10. Which of the following offers to the consumers for a trial amount of product?
A. Coupons C. Rebates
B. Discounts D. Samples
11. What do you call a mass communication technique that offers short-term incentives to
encourage purchase or sales of a product or service?
A. Advertising C. Personal selling
B. Direct marketing D. Sales promotion
12. Which of the following is NOT an example of a pull strategy?
A. A 50% discount on selected items at SM Malls
B. A large billboard of Nike displayed at Colon Street
C. An Influencer shares her travel experience on social media
D. Cebu Home Builders conducted a trade show of their products
13. Which refers to a communicative element of the marketing mix?
A. Price C. Product
B. Place D. Promotion

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14. Which of the following is an example of sales promotion?
A. Brochures C. Email
B. TV Commercials D. Raffle coupons
15. What is a promotion strategy that calls for spending a lot on advertising and consumer
promotion to build up consumer demand?
A. Direct strategy C. Sales strategy
B. Push strategy D. Pull strategy

Lesson Marketing Channels & Supply


1 Chain Management

The previous module discussed pricing strategies. You learned the internal and external
factors influence the company’s pricing decisions. This lesson, it focuses on the distribution
channels.
At the end of the lesson, you are expected to:
1. Discuss the structure of distribution channels.
2. Identify the different marketing intermediaries.
3. Explain the nature of supply chain management.

Try to answer the Block builders and let see how far you remember your previous lesson.

Instructions: Fit the letter blocks into the diagram to spell out one of the pricing
approaches/strategies.

M A S K I N G
I P R

M M R K E T
I C I N G

Clue:
Pricing strategies for new product

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What’s New

Firms need to create quality products and price them


affordably. However, it is also equally necessary to place them
in convenient and strategically located areas for easy access to
the customers.

1. What is the nature of distribution channels?


2. What role does physical distribution play in
attracting and satisfying customers?

What Is It

Distribution channel or marketing channel is the path that a product takes before it is sold to
the consumer. The distribution channel is an important element of the marketing mix, as it
determines where and when the product will be available to customers.
Distribution channels can be described by the number of channel levels involved. These levels can
be described as:

a. a direct marketing channel where there are no intermediary levels between manufacturer and
consumer.
b. an indirect marketing channel where there can be numerous, and a variety of intermediaries
involved in bringing the goods or service from the manufacturer to the consumer or business
customer.

MARKETING INTERMEDIARIES IN DISTRIBUTION CHANNELS


Distribution channels mainly involve marketing intermediaries, which refer to individuals or
businesses that sell products to a firm or another vendor; or to the consumers themselves. The
marketing intermediaries involved in product distribution include wholesalers, retailers,
distributors, and agents.

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Wholesalers Retailers Distributors Agents
Are those engaged Are those selling Are those selling are those that
from buying bulk goods directly to bulk products to represent a company
products mostly consumers for their other businesses to convince buyers
from producers. personal, non- and vendors. to purchase their
business use. However, products.
distributors only sell
non-competing
products and
product line

Retailing can be done in stores (store retailing) examples are department stores, supermarket,
convenience store or out of a store (non-store retailing) includes selling through direct mail,
catalogs, vending machines, tv home shopping shows

PRODUCT DISTRIBUTION TYPES


There are general ways on how a product can be distributed using marketing intermediaries:
1. Exclusive distribution - distribution is limited to a select number of dealers, usually one or a
few.
2. Intensive distribution - this product distribution type, used mostly by fast-moving consumer
goods and convenience goods, involves making a product available in as many retail outlets as
possible.
3. Selective distribution - positioned between exclusive and intensive distribution, this type of
product distribution involves the use of more than one but not as many dealers as in intensive
distribution.

SUPPLY CHAIN MANAGEMENT


The supply chain organizes the parties and activities involved in the production and delivery of
goods and services in an orderly and logical sequence. These parties include suppliers and
customers.
The activities in the supply chain are classified into two categories: upstream and downstream.

Figure 1. Supply Chain


https://www.pinterest.ph/pin/557601997611490881/

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Directions: Give at least five examples of distribution channels that is used to bring the product
or service to the marketplace. Support your example with an explanation.

Distribution Channels Explanation


Vendors display their products on the street
Ex. Sidewalk kiosk (fruit stand vendors) and allow the customers to buy the
product/s directly
1.
2.
3.
4.
5.

What I Have Learned

What do you think is the most critical function performed in logistics? (Ex. Supplier to retail
stores) Explain why and describe how the field is changing and what you think will happen in
the future. Please composed at least three-five sentences.

Lesson
2
Marketing Communication

In lesson 1, you learned the distribution channels which is one of the important elements of
the marketing mix, as it determines where and when the product will be available to customers.
This lesson will cover the fourth P of the marketing mix, which is promotion.
At the end of the lesson, you are expected to:
1. Discuss the role of promotion in the marketing mix.
2. Explain the promotional mix tools.
3. Apply the promotional strategy appropriate for products and their target audience.

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Directions: Label each picture that corresponds to the distribution channel in the box and
arrange them by putting numbers 1 to 4.

Distribution Channel
⚫ Consumer
https://tinyurl.com/y6lvlzz5 https://tinyurl.com/yyxuksct ⚫ Manufacturer
⚫ Retailer
⚫ Wholesaler

https://tinyurl.com/y2seo7ol https://tinyurl.com/yxc4vfo2

What’s New

Marketing mix centered around the product, price, place,


and promotion.

Promotion is the communication aspect of the marketing mix.


It is creating a channel for conversion with a targeted
consumer base.

1. what is the nature of promotion in marketing mix?


2. Which modes of promotion are likely to help meet the
target audience?

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What Is It

Promotion is the communicative element of the marketing mix. Through promotional activities,
companies give information about the features and benefits of a product. Promotion can build
awareness and create interest, reinforcing a brand, persuading customers, and enhancing sales,
and improve the performance of a declining product.

PROMOTIONAL MIX
Promotional mix is a specific mix advertising, personal selling, sales promotion, public relations,
and direct marketing tools that a company uses to pursue its advertising and marketing
objectives. The five major tools are:

Promotional
Description Examples Advantages Disadvantages
Mix
Advertising Defined as -Television - wide range of - impersonal
any paid, non- -Radio - audience - not as
personal form Commercials - - able to repeat a persuasive as a
of promoting Print ads -Flyers message many salesperson
products, -Brochures - times - a one-way
services, and Magazines - - very expressive communication
ideas by a Billboards - - can be very
company or Online platforms costly
organization like facebook
and YouTube

Sales It refers to - seasonal - attention - efforts usually


Promotion short term discount attracted easily short-lived
strategies and - samples - information - efforts not
incentives - raffle coupons provided that effective in
that help - price packs or may lead to building long-
improve a cents-off deals purchase run brand
product’s - discount - strong preference
sales - rebates incentives to
performance - contest purchase
- games - invites and
- point of rewards quick
purchase response
promotion
- free goods

Public It is building - press release - very believable - lack of content


Relation good relations - sponsorship - can reach control
with the - special events - prospects who - higher cost
company’s written materials avoid salespeople
various public such as and

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by obtaining brochures, advertisements- - may needed
good favorable articles, can dramatize a special skills to
publicity, newsletter company or do PR effectively
building up a - corporate product
good identity - often
corporate materials such underused
image, and logos, business
handling or card, stationary
heading off
unfavorable
rumors,
stories, and
events
Personal It is done by - sales - most effective - higher cost
Selling the company’s presentation tool for building - sales force
salespeople - trade shows up preferences, requires a
and involves - product convictions, and longer-term
one-on-one demonstration actions commitment
interactions - has personal - company’s
with potential interaction most expensive
customers to - allows all kinds promotion tool
persuade of relationships
them to to develop
purchase a - buyer feels a
product or greater need to
service listen and
respond

Direct It is direct - mail - nonpublic -


Marketing communicatio - telephone - immediate
ns with - fax - customized
carefully - email - interactive
targeted
individual
consumers to
obtain an
immediate
response

PROMOTION MIX STRATEGIES

1. A push strategy is a promotion strategy that calls for using the sales force and trade promotion
to push the product through the channels; the producer promotes the product to wholesalers, the
wholesalers promote to the retailers, and retailers promote to consumers.

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2. A pull strategy is a promotion strategy that calls for spending a lot on advertising and
consumer promotion to build up consumer demand. If successful, consumers will ask their
retailers for the product, the retailer will ask the wholesalers, and wholesalers will ask the
producers.

Figure 2. Promotion Mix and Strategy


https://images.app.goo.gl/fPjEgdeCqgGE4KF78

Directions: Copy the table below on a separate sheet of paper and identify which promotional
tools or techniques are appropriate to the promotional mix strategies.

Direct selling Trade show promotion Email marketing


Advertisement Point-of-sale display Blogging
Word-of-mouth referrals Packaging design Discount
Negotiation with retailers Product/service demonstration
Sales promo Social media promotion

Push Strategy Pull Strategy

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What I Have Learned
Directions: Choose among in sales promotion tools (ex. freebies, discount, etc.) that would be
best for stimulating sales that are listed in column A. Explain your choices.

Sales Promotion Tool


Product/Services

1. Dry cleaner

2. Delivery services

3. Household products

Use a separate sheet of paper. Please do not forget to write the following in your answer
sheet:

Name:________________________________________________ Yr. & Section: _________________________


Subject: _______________________ Quarter No: _______________ Module No: _____________________
Name of the Activity: Assessment Date: ___________________________

Directions: Read each of the following questions carefully and choose the letter of the correct
answer.

1. What is the communicative aspect of the marketing mix?


A. Price C. Product
B. Place D. Promotion
2. What is a marketing mix where the path that a product takes before it is sold to the consumer?
A. Price C. Product
B. Place D. Promotion
3. What are marketing intermediaries that are independently owned firms that purchase and sell
goods in bulk quantities to vendors and businesses?
A. Agents C. Retailers
B. Distributor D. Wholesaler
4. What type of distribution channels where the structure is composed of two levels - the
manufacturer and the end consumer?
A. Direct marketing channel C. Marketing channel
B. Indirect marketing channel D. Marketing intermediaries
5. What type of product distribution employs only one intermediary in a specific area?
A. Exclusive distribution C. Intensity distribution
B. Intensive distribution D. Selective distribution

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6. What do you call the sequence of activities and parties involved in the production and
distribution of goods and services?
A. Distribution channel C. Marketing intermediaries
B. Intensity distribution D. Supply chain
7. What retail organizations carry a wide variety of product lines such as clothing, home
furnishing, and household goods?
A. Convenience store C. Superstores
B. Department stores D. Supermarket
8. What are promotional mix allows personal presentation by the firm’s sales force for the purpose
of making sales and building relationships?
A. Advertising C. Personal selling
B. Direct marketing D. Public relations
9. What promotional events that give consumers the chance to win something by luck or through
extra effort?
A. Coupons C. Discount
B. Contest D. Sample
10. What sales promotion tools reduced prices that are marked by the product directly on the
label or package?
A. Discount C. POP promotion
B. Rebates D. Price packs
11. Which of the following statements is not true in public relations?
A. Public relations are cheaper than advertising
B. Public relations can build up a corporate good image
C. Public relations can have a strong impact on public awareness
D. Public relations can provide information that may lead to a purchase
12. What is a promotion strategy that calls for using the salesforce and trade promotion to push
the product through channels?
A. Direct strategy C. Sales strategy
B. Push strategy D. Pull strategy
13. What promotional tools when the companies conducted public service activities?
A. Advertising C. Public relations
B. Direct marketing D. Sales promotion
14. What promotional mix where it can reach the masses and enables them to repeat the messages
many times?
A. Advertising C. Public relations
B. Direct marketing D. Sales promotion
15. Which of the following are the disadvantages of personal selling?
A. It charges to higher cost
B. Salesforce requires a longer-term commitment
C. All the above
D. None of the above

Directions: Make any promotional mix - advertising, sales promotion, public relations, personal
selling, and direct marketing that you believe displays a big impact on the audiences. Explain
what the concept is, who you think is intended for, and why it is effective.

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Answer Key

References

Books

Te, D. M, Vida, D. M., & Marte, R.B. (2018). Principles of Marketing. Quezon City, Philippines. C & E Publishing,
Inc. pg. 151-158, 161-167
Ac-ac, MV (2009). Principles of Marketing. Pasig City, Philippines. Anvil Publishing, Inc. pg. 203-217, 230-245

Websites

What is Supply Chain Management?. Retrieved on November 2020 from


https://www.ibm.com/topics/supply-chain-management

Marketing Mix - Promotion in Four P’s by M. Luenendonk, 2019. Retrieved on November 2020 from
https://www.cleverism.com/promotion-four-ps-marketing-mix/

Advantages and Disadvantages of Public Relations. Retrieved on November 2020 from


https://www.knowthis.com/public-relations/advantages-and-disadvantages-o f-public-relations/

The Push and Pull product distribution model. Retrieved on November 2020 from
https://www.smartinsights.com/marketing-planning/marketing-models/pus h-pull-product-
distribution-model/

Figure

Figure 1. Supply Chain Management Flow by Jyler. Retrieved on November 2020 from
https://www.pinterest.ph/pin/557601997611490881/

Figure 2. Promotion Mix and Strategy. Retrieved on November 2020 from


https://images.app.goo.gl/fPjEgdeCqgGE4KF78

Pictures

Refer to Q2-M1

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