Study Notes
The marketing mix involves decisions about place and promotion to ensure products reach consumers effectively and are well-promoted. Distribution channel — the path a product takes from producer to consumer. Example: Direct to consumer, retailer only, wholesaler and retailer, or with an agent. Promotion — activities to raise awareness and sales of a product. Example: Advertising through TV, radio, or social media. Sales promotion — short-term incentives to boost sales. Example: Buy one, get one free offers. Marketing budget — financial plan for marketing activities. Example: Allocating funds for an advertising campaign.
Exam Tips
Key Definitions to Remember
- Distribution channel: The path a product takes from producer to consumer.
- Promotion: Activities to raise awareness and sales of a product.
- Sales promotion: Short-term incentives to boost sales.
Common Confusions
- Confusing direct to consumer with using a retailer as an intermediary.
- Mixing up above-the-line and below-the-line advertising.
Typical Exam Questions
- What is a distribution channel? A distribution channel is the path a product takes from producer to consumer.
- How does promotion influence sales? Promotion raises awareness and encourages consumers to buy, increasing sales.
- What are the benefits of a marketing budget? A marketing budget helps allocate resources effectively for promotional activities.
What Examiners Usually Test
- Understanding of different distribution channels and their suitability.
- Knowledge of various promotional methods and their impact on sales.