Marketing mix

Product Product variety Quality Design Features Brand name Packaging Sizes Services Warranties Returns

Price List price Discounts Allowances Payment period Credit terms

Promotion Sales promotion Advertising Sales force Public relations Direct marketing

Place Channels Coverage Assortments Locations Inventory Transport

Product: a company should have the right products for each target markets

Price: a company should price its products or services correctly in relation to each other and to competitor's products or services

Promotion: a company should advertise and promote its products and services in an effective way

Place: a company should distribute its products or services through the right channels and make them available in the right outlets

Task 10: Four consumers talk about different products. Read the extracts and decide which of the four Ps each consumer discusses: product, price, promotion or place

A	I really wanted it, but when I tried to buy it, I just couldn't get it anywhere. My friend heard that it was in one shop and he queued up for ages, but they'd run out by lunchtime.
В	The company held a party on a river boat to launch their new campaign. It was absolutely fantastic. We also got a free gift at the end.
С	The shoes were really expensive but definitely worth it. I think the fact that they are so expensive really distinguishes them from the competition.
D	I've had this briefcase for 20 years and it still looks good. The material is high quality and long-lasting.

Task11: Think of some products you have bought recently. Why did you buy them? Which of the four Ps influenced your decision to buy?

Model: Recently I have bought a new plasma TV-set at a discount. It is reliable and of modern design. I think that price and product influenced my decision.

TEXT3: WHOLESALING AND RETAILING

Products may pass through several hands from the time they leave the factory to the time they reach the customer. A factory often sells goods in large quantities to a wholesaler.

Wholesaling is part of the marketing system which provides channels of distribution that are used to bring goods to market. Most manufactured consumer goods are marketed through an indirect channel: goods come from manufacturer to the wholesaler to the retailer to the consumer or through a direct channel that moves goods from the manufacturer or producer to the consumer.

Wholesalers are often called distributors. They perform a service in linking the factory and the retailer. The wholesaling middlemen are merchant wholesalers who take title to the goods they deal in. There are also agent middlemen who negotiate purchases or sales or both, but they don't take title to the goods they deal in. These agents don't earn salaries. They receive commissions.

Wholesalers simplify the process of distribution. Since a wholesaler handles a large assortment of items from numerous manufacturers, he greatly reduces the problem of both manufacturer and retailer. The storekeeper doesn't have to deal directly with thousands of different people. He may have a well-stocked store and deal with only a few wholesalers.

The wholesaler sells to retailers. Retailing is selling goods and services to the ultimate consumer. The distribution and marketing of goods, whatever methods are used, cost a great deal of money. The retailer is the most expensive link in the chain of distribution. As middlemen, they make their profits by charging the customer 25 to 100 - per cent more than the price they paid for a given item. Most retailers operate through stores, but there are mail-order houses and vending machine operators. Retail stores vary also, ranging from department stores, discount houses, cooperatives and franchises to single line retailers.

The figure below shows how they fit into the various stages in the production of chocolate.

PRODUCERS
M ars	Nestlé	C adbury	Terry
WHOLESALER
Jones	Smith	Brown	Green
RETAILERS

The wholesaler buys goods in bulk from producers and sells them in small quantities to retailers. In doing so he helps production and relieves manufacturers and retailers of the risk of a fall in demand e. g. fashion changes. The holding of stocks is in itself a valuable economic function evening out prices resulting from temporary changes in demand and supply.