OCR A2 Business Studies Marketing

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Objectives and Strategies

The role of marketing is to identify and satisfy customers needs and wants.

  • Marketing ensures that business supply goods and services that the customer wants.
  • This gives them a competitive advantage and is mutually beneficial for the business and the customer.
  • Marketing covers market research, market analysis, market planning and the marketing mix.
  • Marketing objectives are what the marketing department uses to say exactly what its hoping to achieve.
  • Key marketing objectives are increasing profit levels and gaining market share.
  • Other objectives might include creating and maintaining a strong brand ID, helping the company to grow, making sure products survive and helping to cut costs.
  • Objectives can be qualitative or quantitative.
  • Marketing strategies say who the company's target market is, and how theyre going to usethe markerting mix to achieve objectives.
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Marketing objectives

Marketing objectives are influenced by things inside and outisde the business:

Internal:

  • CORPORATE OBJECTIVES - make sure activities fit in with the company's overall goals.
  • FINANCE - finance department allocates the marketing departments budget, which effects what the marketing department is able to do.
  • HUMAN RESOURCES -  workforce planning identifies how many staff the marketing department needs.
  • OPERATIONS - production department can only produce so many units in a certain time period.

External:

  • MARKET- State of the economy has a big impact on marketing objectives
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Marketing objectives

  • TECHNOLOGY -  Changes in technology effect some businesses more than others. Markets where technology changes rapidly, objectives tend to be more focused on sales and price.
  • COMPETITORS - actions of competitiors effects marketing, particularly in a highly competitive market.

Low cost and differentiation marketing strategies ->

Low cost:

  • Lowest cost of production for a given level of quality.
  • In a price war, firm can maintain profitability while the competition suffers losses.
  • Prices decline, firm can stay profitable because of low costs.
  • Very broad market is needed, preferably global, with huge production facilities to take advantage of economies of scale.
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Marketing objectives

Differentiation:

  • Requires a product with unique attributes, so consumers percieve it to be better than rival products.
  • A unique product has 'added value' so they can charge a premium price.
  • Compeitiors try to copy the product or consumer tastes could change.

Diversification, market penetration and development strategies, too...

  • market penetration is trying to increase your market share in your exisiting market. Works best in a growth market.
  • Diversification means selling new products to new markets. Very risky strategy. Used when a business needs to reduce their dependance on a limited product range.
  • Product development is selling new products to existing markets. Used when the market has good growth and business has high market share, strong R+D and a good competitive advantage .
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Marketing objectives

  • Market development is selling existing products to new markets. Relevant to businesses with a strong product and spare capacity. Risky, unless the firm has spotted a clear new market opportunity.

Marketing can be asset-, market-, or product-led.

  • Asset-led marketing combines consumer wants with the strengths of the firm. Best route to long term customer satisfaction and brand loyalty.
  • Market orientated businesses find out what the customer wanrs. Entirely focused on the customers needs, risk of producing something the customer doesnt want is very low. More flexible than asset-led and meets changes in demand more quickly.
  • Market-led approach has other risks though. Tries to fulfil customer needs even when the firm doesnt have the right resources. Can push the firm into new markets where it doesnt have experience. Disappointed customers leave the brand.
  • Product oriented focus on developing new products before they consider the needs of the market. Businesses that make innovative products are occassionally product-orientated.
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Marketing

Marketing can be helpful for other departments.

  • larger businesses have specialised marketing departments - marketing effects all departments.
  • Market analysis tells the finance department how much the business is likely to make in sales, and it tells the business how big the market for the product is.
  • Market research and analysis tells the research and development department what kind of products to research and design, to meet future needs.
  • although marketing objectives may conflict with objectives of other departments.

The marketing department needs to consider other factors and decisions:

  • FINANCIAL FACTORS - has to consider the marketing budget. Unexpected budget cuts mean the marketing department would have to alter their objectives.
  • WORKFORCE ISSUES - can only diversify if it has staff with the right skills. would have to employ new people and organise a successful recruitment campaign. has to be able to afford to pay its new staff a suitable wage.
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Marketing

  • ETHICAL ISSUES -  departments that behave ethically think about who theyre targeting. Companies might think about the impact their marketing activities have on the environent. Might choose to reduce the amount of packaging they use in order to reduce waste.
  • TIME AND OTHER CONSTRAINTS -  how long it has to come up with a campaign. Need to consider the brand and how customers veiw this. Need to think about the competition, especially when it comes to pricing.

The law has an impact on marketing.

  • Governemtn regulates businesses so they act in the public interest.
  • Legislation protects consumers, can lead to increased costs, may make innovation harder.
  • Legislartion can open up markets and also close markets through protectionist measures.
  • Protects businesses through patents, trademarks and copyright.
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Marketing

The law directly effects the marketing mix:

  • Product - Some products are plain illegal. Sale of Goods Act means goods must be "fit for purpose" and "of satisfactory quality".
  • Price - Predatory pricing is illegal although its difficult to prove that a business is trying ti kill competition. Cant fix prices or agree with competitiors to all charge the same price. Consumers must be told the price before they buy.
  • Place - Some products can only be sold in certain places by certain people. Licenses are required to sell some products. Sunday trading is limited.
  • Promotion - Trade Descriptions Act regulates promotion. Cant lie about products. Offensive adverts can be banned. Advertising of some products is restricted. Advertising hoardings need planning permission.
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Marketing planning and strategy

  • marketing plan gives details of all the activites that are going to take place in the marketing department, turn the marketing strategy into reality.
  • explains the background to the marketing strategy and how budgets will be spent.
  • useful for marketing staff, lets them know what they'll be doing. Other departments use it too.

All marketing plans contain the marketing objectives and strategy. Nearly all marketing plans will contain:

  • OBJECTIVES - states the company's corporate objectives, says how the marketing objectives will help to achieve them.
  • BUDGETS - detailed budgets with the expected costs of each product, department or marketing activity.
  • SALES FORECAST - how many sales or how much revenue the business expects to make.
  • MARKETING STRATEGIES - describes the strategies that will be usewd to achieve the marketing objectives

Some companies include other sections, too e.g. action plan or how they plan to control activities

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Marketing planning and strategy

Marketing plan is affected by internal and external factors:

Internal:

  • product range effects the marketing plan.
  • need to consider the firms strengths and weaknesses.
  • marketing activities restricted by how much finance is available.
  • human resources are important, need staff with the right skills.
  • operational issues, needs to be sure its capable of producing enough to keep up with demand.
  • current marketing mix, incorporate some elements of the exisiting mix into the new plan

External:

  • think about competitiors, consider the competitors sales and market share and future plans.
  • state of the economy.
  • companies look at the market.
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Marketing planning and strategy

Marketing planning process is cyclical

  • gives a fairly long term view of what the marketing departments planning to do .
  • plan is dependent on market and environmental circumstances remaining roughly the same as when the plan was written
  • need to constantly review whats happening in the market and what their competitors are doing so the marketing plan stays relevant . if somethings changed, need to develop new marketing objectives and strategies and a new marketing plan.

1 - mission statement                             5 - Write (or revise) marketing plan

2 - corporate objectives                           6 - Check performance against targets (review)

3 - assess market and env. issues           3 - assess market and env. issues

4 - develop marketing objectives/strategies

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Market analysis and buyer behaviour

Businesses need to know their customers

  • understanding why a customer buys a product allows a business to respond to the customers needs.
  • customers go through several stages when the buy something, 1 - recognising the need, 2 - finding information, 3 - considering alternatives, 4 - purchasing the product, 5 - evaluating the pruchase.
  • Buying process can involve up to 6 groups of people - initiators (suggest making purchase), influencers (put pressure on the person doing the buying), gatekeepers (decide whether the salesperson gets to see the person making the final decision), deciders (who make the decision to buy), purchasers (who make the physical purchase) and users (who actually use the product).
  • Grouped by personality according to how long it takes them to buy a new product. Innovaters and early adopters buy the product when it first comes out. Laggards are the last to buy something. Marketing is usually aimed at innovators and early adopters. 
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Market analysis and buyer behaviour

Economics, sociology and psychology all affect buyer behaviour.

  • Sociology - explains how belonging to certain groups affects peoples buying behaviour. Groups that the buyer might belong to include families, clubs or friendship groups. Each group has a particular behaviour pattern which influences the actions of the individual.
  • Psychology - helps companies work out why people buy certain products. Believe people have basic needs and these have to be satisfied before higher level needs. Hard for people to recall adverts off the top of their head, so use psychology to help them develop effective point-of-sale displays to jog their memory.
  • Economics - can only buy something if they have enough disposable income to be able to afford it. High interest rates discourage people from spending. Low interest rates encourage them to spend. Perceptions of value affect what they buy - why firms use psychological pricing.
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Market analysis and buyer behaviour

Markets are segmented into groups of similar customers

  • Income - luxury products aimed at high income groups.
  • Socio-economic class - segmented based on the jobs people have. Socio-economic class is shown by a letter, A being proffesional people and E being pensioners and unemployed.
  • Age - target products at specific age groups.
  • Gender
  • Geographical region - some products have a regional market
  • Amount of use - mobile phone suppliers market differently to heavy and light users
  • Ethnic grouping - ethnic minority digital TV channels
  • Family size - people carriers
  • Lifestyle - busy young workers often by ready meals.
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Market analysis and buyer behaviour

Market analysis tells firms about market size and growth

  • market analysis is when a company looks closely at market conditions. its useful for planning.
  • market size is the total sales in the market
  • businesses need to know if the market is growing or shrinking.
  • Formula for market growth is:
    • new market size - old market size     x100%
    •         total market size
  • in a growing market, sveeral firms can grow easily. in a shrinking market, competition can be heavy. Firms can diversify or may want to get out of the market altogether

Market analysis tells firms about market share

  • market share is the percentage of sales in a market made by one firm, or by one brand.
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Market analysis and buyer behaviour

  • market share is calculated using this formula:
    •          Sales             x100%
    •  Total market size
  • Important to look at trends in market share  as well as trends in sales revenue.

Market classification means knowing what market you operate in.

  • market classification means identifying a markets characteristics
    • Geography
    • Nature
    • Seasonality
    • Development
    • Product destination
  • Companies don't always spot all the markets they could be in
  • Marketing can also be a problem for firms that operate in several markets. Have to use different marketing activities to target different markets. Need to be able to afford to carry out a variety of marketing activities simultaneously.
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Marketing analysis

IT can be used to help analyse markets. most companies use software to do their marketing analysis, advantages are:

  • calcuylations by hand require alot of concentration - using IT can reduce the risk of errors.
  • computers compare moving-average trends from different periods
  • computers can process much more data than humans can. Incredibly time consuming for a human to calculate moving averages on the huge amount of data that a large firm generates.
  • can be used to gather information for marketing analysis at the point-of-sale.
  • companies now provide marketing analysis software

analysing data can be difficult:

  • random variations, more than one correlation or no apparent correlation. Hard to draw any useful conclusions
  • software can be expensive, upgrading costs even more money
  • staff need to be trained, expensive and time consuming
  • might start to value you quantity of data of quality
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Market research

Finds out about markets, customers and competitors

  • analyses the size, geography, segmentation and sales potential of markets.
  • finds out about products and product development
  • analysis of sales includes finding out anout sales methods, territories and outlets.
  • promotional activities can be analysed
  • analysing the economy, calculate the rate at which the economy is growing or shrinking
  • customer motivation, why customers buy their product, why they buy competitors products, what their perceptions are of products on the market
  • important to research competitors actions and products
  • purpose of market research is to reduce risk.
  • Qualitative research is subjective
  • Quantitative research is factual
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Market research

Field research gather primary data and desk research uses secondary data

Primary data:

  • information that doesnt already exist. Collected for a specific purpose
  • surveys, observation, loyalty cards, discussions and test marketing are used to collect primary data
  • loyalty cards provide rewards and also collect information. target ads to the customers buying patterns
  • discussions find out customer attitudes and changing tastes and behaviours.
  • Test marketing involves a small scale test of a new product like a preview of the product
  • primary data is taken from a small sample of the market

secondary data:

  • second hand information gathered by someone else
  • market intelligence reports produced by market research organisations
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Market research

Market researchers need a representative sample:

  • cant ask the whole of the market so select a sample.
  • when they select the sample, try to make it reflect the characteristics of their target market
  • a bigger sample has a better chance of being representative but theres always a margin of error
  • size of the sample may depend on how many people a company can afford to ask. If cash for research is limited, the risk of information being innacurate increases
  • finance isnt the only thing that affects sampling method. The type of product or firm, the risk involved and the target market also affect it.

6 ways of getting a sample:

  • Random: names are picked randomly from the whole population
  • Stratified: population is divided into segments based on things like age, gender, income and then selected at random from each segment.
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Market research

  • Cluster: population can be broken down into smaller groups. Start by picking a random sample of clusters and then interview a random sample of people from each cluster. To be accurate clusters need to be as similar to one another as possible. Needs far less time and legwork than random sampling.
  • Systematic: choosing a starting point in the sampling frame and selecting every nth value. May be bias, if theres an underlying pattern in the sampling frame.
  • Quota: selection is made by the interviewer, who'll have a quota to meet. Bias as interviewers tend to pick who looks 'nice'. Quick and useful, though.
  • Convenience: New businesses with limited funds often use convenience sampling, which samples consumers who are most easily contacted. Bias.
  • most scientific way to find out whats happening in the market, greatly reduces the risk of making expensive mistakes
  • have to regularly carry out new market research as market conditions change
  • relying too heavily on it prevents companies from making decisions based on gut feeling
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Market research analysis

Managers need to make sense of data.

  • need to turn raw market research data into something thats easy fro managers to use and understand. Often want to know the average of a set of data.
  • histogram of results will often be symmetrical and bell-shaped - results follow a normal distribution
  • Production departments often use normal distribution to ensure that quality levels are consistent.

Standard deviation is a measure of how spread out your data is.

  • standard deviation is a really important measure
  • very useful for analysis and problem solving
  • 68% - one standard deviation either side of the mean
  • 95% - two standard deviations either side of the mean
  • 99.7% - three standard deviations either side of the mean
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Market research analysis

Surveys always have errors.

  • errors in surveys can come from sampling errors and non-sampling errors.
  • sampling error is the difference between the value obtained in a survey and the true value
  • errors are unavoidable unless you can survey the whole population
  • non-sampling errors happen for other reasons
  • may give answers to please the interviewer
  • may give socially acceptable answers
  • may fail to understand the question
  • may fail to return a postal survey
  • errors can also get into data when its being typed up or prepared.
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Marketing decision-making

  • Marketing managers use the AIDA model to develop promotional campaigns.
  • Mainly applied to above-the-line activities although can be applied to below-the-line promotion
  • effective promotion goes through four stages:
    • Awareness - advertiser aims to make the consumer aware, grab the consumers attention.
    • Interest - get the consumer interested. Ads try to differentiate the brand from rival brands.
    • Desire - persuading the consumer he or she wants the product. Desirable image in advertising or offering free samples.
    • Action - get the consumer to act and actually buy the product e.g. sales promotions
  • Important to follow all steps

DAGMAR is a model for promotion and advertising

  • stands for Defining Advertising Goals for Measured Advertising Results
  • aims to increase awareness of the product. Based on the idea that customers move through a series of five stages when buying a product.
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Marketing decision-making

  • Unawareness - doesnt know about the product
  • Awareness - vague awareness of the product
  • Comprehension -  recognises and knows about
  • Conviction - prefers the product to others
  • Action - purchases the product
  • Uses the psychologival pattern of buyer behaviour
  • For impulse or low-value sales, customer may blend stages together
  • For high-value sales, the process of increasing awareness can take months.
  • Companies combine different methods of promotion to ensure customer moves through the stages. This is known as the promotional mix.
  • Some things can stop the consumer moving through the five stages - competitor activity, unwillingness to buy and memory lapses.
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Marketing decision-making

SWOT stands for strengths, weaknesses, opportunities and threats. Its a tool that allows a business to consider internal and external factors. Tells managers where the business is.

  • business must identify its strengths and weaknesses in a factual and objective way
  • external environment provides the opportunities the business wants to exploit and the threats that might prevent success.
  • lets the business know where it has a competitive advantage.

Ansoff's matrix is used for strategic decisions

  • Used when a firms objective is to grow. Shows the strategies that can be used to achieve growth according to how risky they are.
  • Advantage is it doesnt just lay out potential startegies for growth - also forces market planners to think about the expected risks of moving in a certain direction.
  • Disadvantage is that it fails to show that market development and diversification strategies also tend to require significant change in the day to day workings of the company.
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Marketing decision-making

  • Product development is less risky, but works best for firms that already have a strong competitive advantage.
  • Market penetration is the least risky strategy - most firms opt for this approach.
  • Ansoffs matrix oversimplifies the options available for growth. Diversification doesnt have to be completely unrelated to what the business does currently.

Fewer strategies for expanding into international markets.

  • not all the strategies on the matrix are suitable to expand abroad.
  • if a company chooses to grow internartionally , its entering a new market, so can only use one of the strategies that involves new markets.
  • safest and most common to use a market extension or development option.
  • in theory, could also use a diversification startegy when expanding into international markets. Diversification is risky, expanding internationally is already risky. Very unlikely that a firm would decide to launch a new product in a foreign market.
  • more common to expand overseas by either exporting goods or by allowing a foreign firm to produce their products under license and pay a set amount for every product sold.
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The marketing mix: Price

Price elasticity of demand shows how demand changes with price.

  • Price elastic products have a large percentage change in demand for a small percentage change in price.
  • Price inelastic products have a small percentage change in demand for a big percentage change in price.
    • % change in quantity demanded
    •          % change in price
  • PED is always negative, so ignore the minus sign. Increase in price causes a fall in demand, and a fall in price causes an increase in demand.
  • If the price elasticity of demand is exactly 1, product is unit elastic - change in the quantity demanded is the same as the change in price. If price  elasticity of demand is greater than 1 the product is price elastic. If the price elasticity of demand is less than 1, its price inelastic.
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The marketing mix: Price

Price elasticity affects revenue and profit

  • sales revenue = price of product x quantity sold
  • If demand is price elastic, a price increase will make sales revenue go down.
  • % decrease in sales will be more than % increase in price.
  • if demand is price inelastic, rise in price will make sales revenue go up
  • % decrease in sales isnt big enough to offset the % increase in price.
  • if demand is price elastic, a firm can increase revenue by reducing price, increasing number of sales. But profit = revenue - cost, more sales often mean higher costs. Profits will only increase if the rise in revenue is more than the rise in costs.
  • if demand is price inelastic, increasing the price will make sales go down slightly, but revenue go up. Fewer sales means fewer costs, therefore more profit.
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The marketing mix: Price

  • Estimatintg price elasticity of demand is difficult becuase price isnt the only factor effecting demand.
  • use primary market research to ask people what the maximum price theyd pay for a product would be. This gives an idea of the relationship between price and demand. Can be unreliable.
  • values used in price elasticity calculations may be wrong. often based on estimates of percentage change in price and demand - market may have changed since the data was collected.

PED depends on ease of switching brands.

  •  if consumer can easily switch to a competitors product, demand will be price elastic when there is a rise in price. Buy the competitors product instead.
  • businesses try to differentiate their products to create brand loyalty. Loyal customers wont switch even if the price goes up, makes the demand less price elastic.
  • its easier for customers to switch if they can compare prices, find cheaper alternatives. Internet makes it easier to switch and increases price elastcitity
  • tend not to switch to alternatives in the short term, takes time to get fed up.
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The marketing mix: Price

  • product types tend  to be price inelastic but individual brands tend to be price elastic.

Income elasticity of demand shows how demand changes with income.

  • people earn more money, theres more demand for some products less demand for others.
    • % change in quantity demanded
    •    % change in real incomes
  • "normal goods" have a positive income elasticity of demand thats less than 1. Means that as income rises, demand for normal goods rises - but at a slower rate than the increase in income.
  • "luxury goods" have a positive income elasticity of demand which is more than 1. Demand for luxury goods grows faster than the increase in income.
  • Inferior goods have a negative income elasticity of demand - demand falls when income rises and demand rises when income falls.
    
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The marketing mix: Price

Elasticity helps a business make choices

  • price elasticity helps a manafacturer decide whether to raise or lower the price of a product. Can see what might happen to sales and what will happen to sales revenue.
  • Useful for choosing a pricing strategy. If a product is price inelastic its not worth considering penetration pricing becuase low initial price wont increase demand.
  • income elasticity helps a manafacturer see what'll happen to sale if the economy grows or shrinks.

Competition-based pricing

  • price makers or price leaders set the price, other businesses follow.
  • Competition reduces prices. Competitive markets, buyers dictate the price, sellers have to take whatever price the buyer is willing to pay.
  • Destroyer pricing or predatory pricing deliberately lowers prices to force another business out of the market. Illegal if its intended to destroy smaller or weaker firms. Predatory businesses usually make a loss on the product, need to be making enough profit elsewhere.  
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The marketing mix: Price

Cost-based pricing

  • full-cost-based or cost-plus pricing takes direct and indirect costs of production into account, adds a fixed percentage called the mark-up.
  • Marginal pricing or contribution pricing sets the price to be more than the variable costs per unit. Price of each unit makes a contribution towards the fixed costs. Enough sales, product will make a profit.
  • Absorption pricing allocates a proportion of the fixed costs to each unit. price is based on the variable costs per unit plus a slice of fixed costs per unit.
  • Target-based pricing sets the price based on the target profit. Price has to cover variable costs, fixed costs per unit and the target profit.

Market-based pricing

  • Penetration pricing is when a product has a low initial price to get into the market. as volume of sales goes up, price is increased.
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The marketing mix: Price

  • price discrimination is when different prices are charged for the same product
  • price skimming or creaming means starting with a high price and reducing it later. Price can go down when the product has achieved economies of scale.
  • Psychological pricing bases the price on customers expectation about what to pay.
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The marketing mix: Product

Value analysis makes sure that products are good value for money

  • businesses try to make their products good value for money - for themselves and for the customer.
  • value analysis looks at ways of reducing the cost of making, warehousing, distributing and selling the product. costs should be reduced as far as possible as long as they dont affect the product quality.
  • risky if customers might notice the changes and think that the quality of the product has fallen. Works best if customer is unlikely to notice the change.

Products have a life cycle from development to decline.

Development:

  • R+D department develops the product
  • Marketing department does market research
  • costs are high, no sales yet to cover costs
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The marketing mix: Product

  • high failure rate because often not enough demand or cant make the product cheaply enough to make a profit

Introduction

  • product is launched, in one market or several. sometimes launched with complementary products
  • often promote the product heavily to promote sales - make sure theyve got enough resources and capacity to meet the demand the promotions create.
  • intial price of the product may be high to cover costs - price skimming
  • price can start off low to cover sales - penetration pricing
  • sales go up, sales revenue has to pay for high fixed cost of development before product can make a profit. Usually ditch products with disappointing sales at this stage.
  • arent many outlets for the new product yet, competition is limited.
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The marketing mix: Product

Growth:

  • sales grow fast. new customers and repeat customers
  • economies of scale, price of manafacturing a unit goes down, profits rise.
  • pricing strategy may change
  • competitors attracted to market. promotion points out differences from competitors.
  • product improved or developed
  • more outlets to stock product

Maturity:

  • sales reach a peak, profitability increases as fixed costs of development have been paid for.
  • sales start to go down, price is often reduced to stimulate demand, less profitable.
  • no new customers
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The marketing mix: Product

Decline:

  • doesnt appeal to customers anymore. sales fall rapidly and profit decreases
  • may just stay profitable if promotional costs are low enough
  • product is withdrawn or sold to another business - divestment

mixed product portfolio is important for a business. Boston matrix is a model of portfolio analysis.

  • compares a products market growth and market share
  • new products are problem children. have a small market share and high market growth. arent profitable yet, need heavy marketing.
  • stars have high market growth and high market share - best future potential. theyre in their profitable growth phase.
  • cash cows have high market share but low market growth. in their maturity phase. already been promoted, produced in high volumes, so costs are low. bring in plenty of money
  • dogs have low market share and low market growth. pretty much a lost cause. either harvest profit or sell them off.
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The marketing mix: Product

  • boston matrix lets a business see if it has a good balanced product portfolio
  • business can use money from its cash cows to invest in its problem children so they can become stars.
  • isnt infallible, products cash flow and profit may be different from what the matrix suggests.

Product differentiation

  • mass market products tend to be all the same more or less.
  • need product differentiation to make them stand out. Clever marketing and branding makes customers see products as special, or particularly suited to them and their needs.
  • clever marketing and a firms brand often emphasise a companys distinctive capability. Allows a company to get a competitive advantage over rival firms.
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The marketing mix: Place

Different channels of distribution

Direct selling: Manafacturer - Consumer

  • accountants, electricians and hairdressers sell their services direct to the consumer. Zero-level channel of distribution - no intermediaries
  • internet has made it easier to sell direct to the consumer
  • more profitable to sell direct - no intermediaries to take a cut of selling price
  • firms that sell direct can offer lower prices, dont have to pay for premises or staff
  • fewer intermediaries in the distribution chain, more control the manafacturer has.

Indirect selling: Manafacturer - Wholesaler - Retailer - Consumer

  • traditional distribution channel for fast moving consumer goods. two-level distribution channel
  • less hassle to sell through wholesalers
  • wholesalers break bulk
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Comments

davidsalter

This is all you need to know about marketing but in card form. Each page allows you to test yourself by inserting words. There is a lot of detail on each card and it can be used instead of a text book.

Angus Cox

Good content, does not cover promotion elements of the marketing mix though.

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