2.4 Marketing Mix- Place And Promotion

Question 1

Place

Answer 1

How to get the product to the customer

Question 2

Channels of distribution

Answer 2

The different ways of moving goods from producers to customers

Question 3

Types of channels (3p)

Answer 3

1) Producer, wholesaler, retailer , consumer
2) Producer, retailer, consumer
3) Producer, consumer

Question 4

Producer

Answer 4

Makes the item

Question 5

Wholesaler

Answer 5

A company that buys products in large quantities from manufacturers then distributoes to retailers

Question 6

Retailer

Answer 6

Seller of product
Eg. A shop, hotel etc

Question 7

Consumer

Answer 7

Person who buys the product

Question 8

Regional distribution centres (RBC)(3p)

Answer 8

• Hold the stock for supermarkets (eg.Lidl)
• Always next to roads to make transportation of product easy
• Don’t get ordered by retailers, get sent straight to retailer

Question 9

How to decide on channel of distribution (4p)

Answer 9

• Business size and scope
• Type of product (perishable, fragile,fustomised)
• Legal issues (buying alcohol, sizzors)
• The market ( selling overseas)

Question 10

Digital distribution

Answer 10

Sold and distrubuted online
Eg. Music, films, ebooks

Question 11

Promotion

Answer 11

Informing the customer and persuading them to buy the product or service

Question 12

Types of promotion (2p)

Answer 12

• Point of sale promotion
• Advertising

Question 13

Point of sale promotion (4p)

Answer 13

• Price reduction
• Competition
• Loss leader
• Free samples

Question 14

Price reduction

Answer 14

• When product price is reduced to get rid of old stock

Question 15

Competitions(2p)

Answer 15

• When customers can enter into monthly prize draws
• Used to boost sales

Question 16

Free samples (2p)

Answer 16

• Often used in cosmetics to allow customer to try product
• Customer can potentially buy the full size

Question 17

Loss leader (2p)

Answer 17

• A product sold at a price cheaper than the price used to make it in hope for the cutomer to buy a more expensive product
• Usually at entrance of store

Question 18

Advertising (5p)

Answer 18

Printed media
Social media
Television
Radio
Websites

Question 19

Printed media

Answer 19

Newspapers, magazines and leaflets

Question 20

Printed media advantage

Answer 20

Cheap to produce

Question 21

Printed media disadvantage

Answer 21

Not very effective strategy, usually thrown in bin

Question 22

Radio disadvantages

Answer 22

Products can’t be seen, which may be important of business wants to show off a stylish new model

Question 23

Radio benefits

Answer 23

Cheaper than TV and more portable

Question 24

Website advantage

Answer 24

Easy to find/access

Question 25

Website disadvantages (2p)

Answer 25

- Setting up and maintaining is expensive - Depends on if customer uses the Internet

Question 26

TV advantage

Answer 26

Reaches a wide audience

Question 27

TV disadvantages

Answer 27

Extremely expensive

Question 28

Social media advantage

Answer 28

Cheap to set up and run

Question 29

Social media disadvantage

Answer 29

Not everyone uses social media