MARKETING MIX
BBI – Marketing Mix (PRICE & PLACE)
Learning Goals
By the end of this lesson I will be able to:
understand the role of price and place in the marketing mix
AGENDA
1. Let’s Go Shopping (Price) 2. Mapquest Webquest (Place) 3. Web Scavenger Hunt
Let’s Go Shopping!
1. Choose a product.
2. Shop online at 3 different stores that offer the product.
3. Record all the different prices you see (and who offers it).
4. Make a decision of the product you would like to purchase, and its price.
5. Be prepared to explain why you chose that particular product.
PRICE
Where do prices come from?
Pricing a Product
PRICE – the money a customer must pay for a product or service
Not an exact science
Empowered customers
Marketplace competition
Constantly changing variables
Pricing $trategies
PLACE
How Did I Get Here?
PLACE (CHANNELS OF DISTRIBUTION)
Channels of distribution are path that goods follow from producer to customer
How is the product distributed?
Channels of Distribution - DIRECT
Direct Channels: selling directly to the consumer
product maker →consumer = “maker-user relationship”
Channels of Distribution - INDIRECT
Indirect channels = product source → intermediary (importer, wholesaler, retailer) →consumer
Intermediaries
importers –introduces foreign manufactured products into Canadian market
wholesaler – buy goods from producer/importer and resell goods to retailers
retailer – direct link to consumers
Maquest Webquest Activity
Describe the channel of distribution of:
1. An egg to the consumer
2. A pack of Stride gum to the consumer 3. A delivery of flowers to the consumer 4. A jar of strawberry jam to the consumer 5. A Tim Hortons coffee to the consumer 6. A book to the consumer
Mapquest Webquest
DISTRIBUTION CHANNEL FOR:____________________________
Specialty Channels
No retail store
Vending machines, telemarketing, catalogue sales, e- commerce, door-to-door
Scavenger Hunt
WHAT’S THE DEAL?
PRODUCT DISCOUNT PRICE HIGH-END PRICE Car
Watch
HOMEWORK
Read The 4Ps of Marketing: Promotion p.247-248
REVIEW – Pricing Strategies
For each of the following, identify whether you believe the scenario will result in a higher or lower price for a product
Scenario 1
One customer purchases a very large quantity of a product.
Scenario 2
A business provides a very high level of customer service.
Scenario 3
The product is very fragile and requires special handling.
Scenario 4
The product moves through many middlemen before it reaches the customer.
Scenario 5
The main factory that makes frozen waffles was flooded and destroyed.
