The marketing mix: place and promotion
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Notas de aula
Place
- Place concerns how and where customers can obtain the offer, including direct producer-to-consumer routes and routes through retailers or wholesalers. Online retail can be direct or intermediary-based; click and collect combines online ordering with physical collection.
- Compare product characteristics, target needs, control, availability, service, commissions and fulfilment costs. Removing an intermediary can add distribution or customer-support work to the producer, so direct selling is not automatically cheaper overall.
Alternative distribution routes
Promotion
- Promotion can inform, persuade, remind or change an image. Methods include advertising, incentives such as samples or coupons, PR, sponsorship, personal selling, direct marketing and suitable product placement. Methods can overlap in a coherent campaign.
- Advertising is paid communication placement; PR activity can incur costs without guaranteeing media coverage; sponsorship exchanges support for association or promotional benefits. Personal selling can be interactive phone or online contact, not only face-to-face meetings.
Promotional methods have different roles
Digital marketing
- Digital tools include websites, social media, ads, email and SEO. They may support audience targeting and measurement but require content, management and often expenditure. Apply relevant advertising, privacy and marketing rules; influencer advertising should be recognisable as advertising.
- SEO aims to support unpaid-search discoverability and is distinct from buying search ads. No ranking is guaranteed. Impressions count displays rather than necessarily unique people, clicks record an action, and conversions depend on the chosen tracked outcome. Measurement gaps and attribution uncertainty remain.
Digital measures answer different questions
Choosing methods
- Choose by audience, objective, product, budget, competitor activity, availability and operational capacity. A suitable channel needs a relevant message and feasible offer; low cost per display alone does not establish value.
- Fictional bookshop launch: £100 local print + £120 local digital ads + £80 opening activity = £300. These figures are teaching assumptions, not quotes or evidence that the plan will work. Investigate reach and response, and ensure promised stock and service can be delivered.
A fictional £300 bookshop launch
Integrated mix
- Product, price, place and promotion should support the intended positioning and customer needs. A premium claim needs suitable quality and service; heavy discounts may affect image or train customers to wait, although some offers can fit a strategy.
- Fictional two-for-one example: usual price £4 and variable cost £1.50 per item. Two separate sales give £5 contribution before fixed costs; the offer gives £1 per pair. Extra demand or other benefits may help, but distributed volume is not the same as profit.
A two-item offer changes contribution
Evaluating
- Evaluate relevant outcomes against cost: awareness, qualified enquiries, trial, purchases or repeat activity, according to the objective. Views and clicks alone do not establish extra profit or what would have occurred without promotion.
- For the explicit fictional ROI definition, estimated extra contribution before campaign cost £1,500 minus campaign cost £500 = £1,000 net gain; £1,000 ÷ £500 × 100 = 200%. This differs from dividing sales revenue by spend, and depends on the attribution and cost assumptions.
Define the campaign return clearly
Slides
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Questões de prática
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1.What is a distribution channel?
Easy- Athe route a product takes to reach customers
- Ba TV channel
- Ca bank
- Da tax
2.What is promotion?
Easy- Amaking products
- Bpaying wages
- Csetting prices
- Dcommunicating to inform, persuade, remind or shape customer perceptions
3.What is advertising?
Easy- Aa tax
- Ba loan
- Cpaid communication to persuade customers
- Da free gift
4.What is a sales promotion?
Easy- Aa wage
- Ba short-term incentive to buy
- Ca permanent price
- Da delivery
5.What is BOGOF?
Easy- Abuy one get one free
- Bbuy online get offers free
- Cbulk order goods or free
- Dbest offer guaranteed
6.What is PR?
Easy- Apaid TV adverts only
- Bdiscounts only
- Cselling directly
- Dmanaging public image and media relations
7.What is sponsorship?
Easy- Aa bank loan
- Ba tax
- Cproviding support in return for a brand association or promotional benefits
- Dselling shares
8.What is personal selling?
Easy- Aradio ads
- Binteractive selling by a salesperson, in person, by phone or online
- Conline ads
- DTV ads
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