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The marketing mix, Distribution channels - Coggle Diagram

- - - - different product have different amount of tax put on selling the product e.g. alcohol, cigarette
    - - competitors product might have high price - to win more consumers lower pricing might help
    - - good brand image, consumers will be welling to pay high cost
    - - packaging
      - producing
      - advertising
      - other fee, e.g. wages
    - - quality high - high cost OK quality low - high cost NO
- - - - use media e.g radio, TV&cinema, newspapers, posters&billboards, the internet
        
        Newspaper ad
        
        internet ad
      - informative advertisement
        
        gives informations to potential buyers of the products
        
        Place
        
        Price
        
        info about product
        
        IKEA
      - persuasive advertisement
        
        creates brand identity for the product
      - Advertising decisions
        
        cost
        
        target audience
        
        target audience profile
        
        age
        
        gender
        
        location
        
        culture and/or language
        
        interest
        
        type of product & message sent
      - A form of promotion that is undertaken by a business by paying for communication with customers, using media
  - - - Incentives such as special offers or special deals directed ar consumers or retailers to achieve short-term sales increases and repeat purchases by consumers
      - Price deals
        
        a temporary reduction in price
      - Loyalty reward programmes
        
        consumers collect the
        points to redeem their rewards later
      - Money-off coupons
        
        redeemed when consumers buy
        the product
      - ‘Buy one get one free’
      - Point of sale displays
      - Competitions
        
        prizes or competitions are used to entice
        customers
    - - The way in which goods are arranged and placed in a store. The aim is for the point of sale to be interesting and eye catching to encourage sales
    - - When businesses send letters/ leaflets / emails directly
        to target consumers
    - - When a salesperson directly calls a household /
        business, hoping to sell their product.
  - - - Used to boost sales, attract new customers, collect user data.
      - Often customers forget to cancel their trial.
      - Doesn’t cost the business anything
  - - - representatives face the
        media – allows feedback and questioning
    - - Many companies attract publicity by linking their brand with popular events
    - - targeted advertising online
      - viral advertising
        
        A direct marketing technique in which a company persuades internet users to forward on its publicity material - Usually includes jokes/ games / video clips
      - E-newsletter
        
        Documents sent electronically to interested customers – usually contain news, updates, promotions. - Only sent to customers who have signed up / already purchased.
  - - - Branding involves giving a product a name, term, design, symbol or any other feature that allows consumers to instantly recognise the product, differentiate it from competitors and maintain brand loyalty.
- - - - independent traders
      - multiple chains
        
        e.g. guardians
      - supermarkets
        
        e.g. Cold Storage
      - superstores
        
        e.g. Decathlon
      - department stores
        
        e.g. Tangs
      - mail order
      - characteristics
        
        A retailer essentially maintains a variety of merchandise.
        
        The aim of a retailer is to achieve maximum satisfaction by exceeding their expectations and delivering exceptional services.
        
        A retailer purchases in bulk from the wholesalers and sells the products to the customers in small quantities.
      - breaks the quantities of goods into units and then sells them on to consumer
    - - travel agents
      - estate agents
      - football agents
      - Advantage
        
        negotiation sales on behalf of seller
        
        usually take commission
        
        advise and support
        
        reduce time usage
        
        low risk
        
        no additional fee - e.g. bonus
      - Provide a link between sellers and buyers. They are not employed by the company but sell the products or services for a commission. The best examples are found in the travel and housing industries.
    - - cash and carry
      - Voluntary - set up by retailers
      - Advantage
        
        break up bulk
        
        storage
        
        offer advice
        
        sells the product to a larger market
      - e.g. Costco
      - buys in large quantity (bulk) from the manufacturer and resells the goods in smaller quantity to retailers
    - - the final person in the channel of distribution
    - - the person who makes the product or service.
    - - type of product
      - the market
      - speed
      - distance
      - control
      - cost
    - - industrial product
        
        tend to be sold more directly, with fewer intermediaries than consumer goods
      - geographical dispersion of market
        
        if the target market id dispersed throughout the country, it is more likely to have lots of intermediaries
      - number of potential buyers
        
        product with lots of potential buyer may consider having intermediaries to distribute the product
      - technical complexity
        
        products like computers tend to be sold directly as they require technical knowledge from staff and a supporting service team
  - - - Cheaper for businesses and then passed on as a benefit to consumers - no rent/mortgage costs incurred for pricey locations. Warehousing costs potentially, but usually cheaper as in more remote areas of countries close to motorways/logistics hubs
      - No one store employee
      - Not restricted to location
        
        larger target market
        
        easier to market
      - Open 24/7
      - fast cash flows
      - Sales promotion
      - Easier to advertise
      - Lower start up costs for businesses as well as running costs
      - Businesses have more choice when locating their businesses
    - - E-tailers use third party delivery services - lack of control on the quality and efficiency of these businesses
      - Damage during shipping
        
        cash outflows for refunds
      - Not trustwrothy
        
        Can't actually see the product
        
        Websites can crash, technical issues, hacking, may not have secure payments
      - mistakes in sending e.g. sending product to wrong customers
      - Lots of competition
        
        lead to more sales promotion to catch customers
        
        less profits made
      - Lack of human contact which can be bad for some customers - depending on the product they might want face to face contact or to be able to touch, see, taste or smell the product before committing to purchasing it
      - Fake traders and reviews can make doing business hard
- - - - Analysis
        
        Development
        
        Test marketing
        
        Commercialisation and Launch
- - - - customers
- - - - customers
- - - - retailers
        
        customers