Chapter 3

The Marketing Mix: Place and Promotion

The last two Ps: getting products to customers through distribution channels and promoting them effectively.

Place

Place means how a product reaches the customer — the channel of distribution. A traditional channel is: producer → wholesaler → retailer → consumer. A wholesaler buys in bulk and sells smaller amounts to retailers; a retailer sells directly to the final consumer.

Key idea

A direct channel (producer → consumer), such as selling online through e-commerce, cuts out the middlemen and can lower costs.

Promotion

Promotion is communication that aims to inform, persuade or remind customers so they buy the product.

  • Advertising uses paid media such as television, posters or the internet.
  • Sales promotion uses short-term offers such as discounts, free gifts or competitions.

Example

Above-the-line promotion uses paid advertising in the media. Below-the-line promotion uses other tools the firm controls, such as sales promotions and direct mail.

Remember

  • The best channel depends on the product, the market and cost.
  • Promotion must reach the right customers without wasting money.

Place and promotion must fit the product and price so the whole marketing mix works together.

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