Marketing Mix:

PLACE
 CHANNELS OF
-DISTRIBUTION
how a product gets from the producer to the final consumer.

Producer Producer Producer Producer

Agent

Wholesaler Wholesaler

Retailer Retailer Retailer

Consumer Consumer Consumer Consumer

 KEY TERMS
Wholesaler: a business that buys products in bulk from producers and then sells
them to retailers.

Retailer: shops and other outlets that sell goods and services to the final consumer.

Middlemen: these are the intermediaries in the channels of distribution.

Direct selling: the product is sold by the producer directly to the final consumer.
CHOOSING A METHOD OF DISTRIBUTION:

● Cost

● Nature of the product

● The market
 CHANNEL OF DISTRIBUTION ADVANTAGES DISADVANTAGES

Producer consumer ●All of the profit is earned by the ●Consumers are not always able to
producer. see and try the product before
they buy.
●It is the quickest method of
getting the product to the ●Delivery costs may be high if
consumer. there are many customers over a
wide area.

Producer retailer consumer ●Consumers can see and try the ●The retailer takes some of the
product before they buy. profit away from the producer.

●The retailer will pay for ●Producers lose some control in

advertising and other the marketing mix.
promotional activities.
 CHANNEL OF DISTRIBUTION ADVANTAGES DISADVANTAGES

Producer wholesaler retailer ●The wholesaler buys in bulk ●The wholesaler takes part of the
consumer from the producer and then from the producer.
breaks this down into smaller
quantities for retailers.
●The producer loses even more
●The transport cost to the retailer control in the marketing mix.
is paid for by the wholesaler.

● The agent has specialist

Producer agent wholesaler knowledge of the market. They ●Another middleman is added to
retailer consumer find wholesalers and retailers the channel of distribution which
who are prepared to buy the reduces the profit to the producer.
product from the producer.
Marketing Mix:
PROMOTION
Promotion
It refers to marketing activities used to
communicate with customer and potential
customers to inform and persuade them to
buy a business’s products.

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Aims of Promotion
★ attracting the attention of the customers

★ persuading customers to buy the product

★ explaining how a product is better than

competitor’s product

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Aims of Promotion
★ creating and developing brand image

★ encouraging wholesalers and retailers to

stock the product

★ reassuring customer, following a problem

with the product

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Methods of Promotion
★ Advertising

★ Sales Promotion

★ Personal Selling

★ Direct Mail

★ Sponsorship
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ADVERTISING
It refers to a paid-for
communication with customers
which uses printed and visual
media.
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 SALES
PROMOTION
It refers to an incentives used to
encourage short-term increases in
sales or repeat purchases.
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 PERSONAL
SELLING
It is most often used when selling
expensive items that have a high
profit per unit.
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DIRECT MAIL

It involves posting leaflets or

other printed materials directly to
the business offices or homes of
potential customers.
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SPONSORSHI
P

It is where a business will pay

to have its name linked to an
event.
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