Promotion and Place Flashcards
What is place
How products should pass from manufacturers to the final customers
Why is place important
Customers; Customers can see, try and buy, Can return if necessary
Manufacturers; Need places to sell their products
That creates the right image
Examples of single intermediary
Retailer: Business selling small quantities direct to consumers, E.g. car showrooms, fruit + veg shops, supermarkets
Direct selling: E.g. door to door, telephone, mail order, farmers’ markets, internet has changed this a lot, E.g. eBay, plane tickets
Examples of Two-intermediary channels
Wholesaler: intermediary to sales mainly to retailers, Wide geography with large distances between retailers, E.g. supermarkets
Distribution channel: Chain of intermediaries a product passes through from producer to final customers, Selling directly to consumers, Produce to consumer
What is promotion
Use of advertising, sales promotion etc.
To inform, persuade and remind consumers
What are the objectives of promotion
Change or enhance brand image
Raise sales
Encourage retailers to stock the product
What is above the line promotion
Promotion directly paid by the company to communicate with consumers through media
(Tends to be costly)
What is below the line promotion
Promotion that is not directly paid by the company
Pro’s of above the line promotion
Reach larger audiences
More likely to appeal to new customers
No long-run costs
Pro’s of below the line promotion
No direct cost involved - cheaper in the short run
Current customers more likely to stay
Get customers spending patterns
What are the different types of marketing
Internet marketing: E.g. google ads
Viral marketing: Facilities and encourages people to pass on marketing messages, Identify ‘influences’
Social media marketing: E.g. marketing on facebook/ instagram
Pro’s of technology
- Can reduce cost
- Easier to target - website gather personal data
- Interactive
- Data - e.g% click on link
- Quick to get out
Con’s of technology
- Skills and employees required
- Time consuming to maintain online presence
- Timely and costly
- Negative feedback made public
- Security issues - ethics
Define guerilla marketing
An unconventional way of performing marketing activities on a very low budget
(consumers may be turned off from a product if used)
