Page 181 - Cambridge IGCSE Business Studies

13 Marketing mix: place

and promotion

Introduction
Objectives
In the previous chapter you learned about the first two elements of the marketing
In this chapter you will
mix – product and price. In this chapter you will learn about the other two Ps: how
learn about:
the business is going to promote the product so that customers know it is available
■ distribution channels (place) and are persuaded to buy it; and finally, the place where consumers will be able to
■ aims and forms of buy the product from.
promotion Although you will study each element of the marketing mix as separate concepts,
■ the marketing budget you need to remember that the four elements are linked. This means that if a

■ technology and the business changes one element of the mix then it is almost certain to affect at least
marketing mix. one, if not all, of the other elements. For example, if a business decides to reduce
the price of one of its products, then this will have to be communicated to the
consumer. Communication with consumers is one of the activities of promotion.
You will also learn how technology has become a major influence on the way
businesses market and sell products.

Place – distribution channels
179
This element of the marketing mix involves a business in deciding:

■ how to get the goods from the producer to the final consumer – known as the
channel of distribution
■ the place where the consumer will be able to buy the good or service, for example a
shop or laundry.

KEY TERM Every business must decide the best way of getting their product to the fi nal
consumer. Businesses can use any of the channels of distribution shown in
Channels of distribution:
Figure 13.1 to achieve this.
how a product gets from the
producer to the final consumer.
Producer Producer Producer Producer

Agent

Wholesaler Wholesaler

Retailer Retailer Retailer

Figure 13.1 Channels of distribution Consumer Consumer Consumer Consumer