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PRINCIPLES OF MARKETING
(PRINMAR)

Lesson 6 :
Developing the Marketing Mix Part 2
 TOPICS
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• Marketing Mix
⮚ Place
⮚ Promotion
 REVIEW
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Marketing Mix

⮚Product
⮚Pricing
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Topic 1: PLACE

Place – refers to distribution or the

methods and location use for the products
or services to be easily accessible to the
target customers. PLACE

Distribution
- also known as channels of distribution. Logistics
Channel
- means that product is properly
distributed and available in a convenient
location at the right time.
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Topic 1: PLACE

Channels of Distribution– movement of product

from the point production to the point consumption

- (also called trade channel or distribution channel)

is the route taken by the product as it moves from
producer to ultimate consumer or industrial user.

- The word channel has its origin from the French

word means “canal”. As applied to marketing it
refers to the path way followed in the transfer of
goods.
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Topic 1: PLACE

Channels of Distribution

are the sells goods sells goods the end

producers in large in small users of
of goods or quantities quantities the goods
products at low for direct or
prices use products
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Topic 1: PLACE
WHOLESALING - is the sale of goods to others to be resold.
Merchandisers – buys goods
- includes all activities involved in selling products to form wholesalers and then
merchandisers or producers for business use. resell those to customers.
- are classified as middlemen who purchase goods form
producers or manufacturers and sell them to retailers or Middlemen – plays the role of
directly to consumers. a broker, go-between or
intermediary in a distribution
Key functions of Wholesalers process or transaction
▪ Information collection and dissemination
▪ Bulk-breaking
▪ Assortment Building
▪ Product storage and transportation
▪ Financing
▪ Risk taking
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Topic 1: PLACE
Types of Wholesalers
⮚ Merchant Wholesalers - buys goods in bulk form
producers and resell them to retailers with a mark-up.
They are sometimes referred to as Distributors.
Rack Jobber – (also known as a rack
⮚ General Merchandise Wholesalers - provide a wide merchandiser) a specialty line
variety of goods. Their products include non- wholesaler who maintains displays
perishable goods such as cosmetics, laundry and stock of goods in retail stores.
detergents, and cigarettes.
⮚ Limited Line Wholesalers - provide an assorted of
goods that are limited to a few specific product lines
but offer a broad selection of items. Example
Hardware store.
⮚ Specialty Line Wholesalers - are comprises only single
product but offer extensive customer service for the
products.
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Topic 1: PLACE
RETAILING - is the sale of goods or products to the
final customer for his personal use or consumption.

- refers to all activities involving the sale of goods or

services directly to the final consumer. (American Mktg. Ass.)

Key Functions of Retailers

▪ Information collection and dissemination

▪ Product assortment selection
▪ Product storage
▪ Financing
▪ Product promotion
▪ Risk taking
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Topic 1: PLACE
Types of Retailers ⮚ Hypermarkets – huge
⮚ Supermarkets – are the most common form of superstores, that offer a great
retailing because there is low manpower requirement for variety of products. They are bigger
and more spacious than
maintenance and high efficiency in providing the product
supermarkets.
to customers.
⮚ Drugstores - compose of pharmacies which are ⮚ Non-store selling – this
found in supermarkets or malls, or as stand-alone stores in approach in retailing involves the
convenient locations. selling of goods in mediums outside
⮚ Department Stores - refers to large stores which a physical store.
offer a variety of products that are organized into
departments or areas such as clothes for men, women, ⮚ Sari-Sari Stores - small retail
kids, jewelries, home appliances, fashion etc. shops found in neighborhood that
cater to the residents of a
⮚ Convenience Stores - are retail stores which carry a
particular community. The word
limited number of goods such as basic food items, personal
sari-sari is a Filipino term which
care products, office supplies, over-the- counter drugs and means variety.
commonly purchase items.
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Topic 1: PLACE

Product Distribution Types

Can you give Product
1. Exclusive Distribution – distribution is limited to a names or Brands that
fall under this type of
selected number of dealers, usually one or a few.
distribution?
The objective of this type of distribution is to have
more control over how a particular brand is priced,
displayed, and promoted. Products that are
distributed exclusively usually enjoy higher mark ups
and better brand equities. The major disadvantage
of this type of product distribution is that brands are
not very accessible to customers.
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Topic 1: PLACE

Product Distribution Types

Can you give Product
2. Intensive Distribution – this product distribution names or Brands that
fall under this type of
type, used mostly by fast-moving consumer goods
distribution?
and convenience goods, involves making a product
available in as many retail outlets as possible. This
type gives consumers the highest level of place
utility and convenience. However, product
manufacturers have very little control on how the
product is priced, displaced and promoted.
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Topic 1: PLACE

Product Distribution Types

Can you give Product
3. Selective Distribution – positioned between names or Brands that
fall under this type of
exclusive and intensive distribution, this type of
distribution?
product distribution involves the use of more than
one but not as many dealers as in intensive
distribution. This allows adequate manufactures
control over retail prices, displays, and promotions.
However, it permits selected products distributors
some level of independence.

Topic 2: Promotion (An introduction)
Here are some classic Filipino commercials that have
the test of time and made a big impact on viewers:
⮚ McDonald;s “Karen Po”
⮚ PLDT’s “Supportahan Ta Ka”
⮚ Fita’s “Kahilingan”
⮚ Purefood’s “ Good Bye Carlo”
⮚ Sarsi’s “Angat sa Iba”
Question: What do you think are the factors that make
commercial impactful and memorable?
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https://www.youtube.com/watch?v=ljy-
TcplGug&ab_channel=ADman1909
https://www.youtube.com/watch?
v=5jDbl1YrcM4&ab_channel=cutiekmp200
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https://www.youtube.com/watch?v=s-
vVolAswxU&ab_channel=ADman1909
https://www.youtube.com/watch?
v=3paSco2p_h8&ab_channel=JehanMu
noz
https://www.youtube.com/watch?
v=wzv1R_6tIdY&ab_channel=Bebot
%2a1943
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Topic 2: Promotion

Promotion – refers to the methods used by a

business to make customers aware of its product.

- Is the process of getting business noticed by the

PROMOTION
people who need or want the products or services.
Advertising
- Includes advertising, personal selling, publicity and Selling
public relations. Publicity
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Topic 2: Promotion

Advertising – any paid and public presentation of

products, services or ideas by an identified sponsor
through a medium.

- Non personal form of communication, meant to bring a

product or service to the attention of potential or current
customers.

- Placement of announcements and persuasive messages

in time or space purchased in any of the mass media by
business firms, non profit organizations, government
agencies, and individuals who seek to inform and or
persuade members of a particular target market or
audience about their products, services, organizations, or
ideas. (American Marketing Association)
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Topic 2: Promotion

Objective of Advertising

1. To inform – advertising is a tool for informing

target customers about a new product, a new
features, or an added benefit of a product.
2. To persuade – the ultimate goal of advertising is
to persuade customers to buy a product
3. To compare - one of the best ways comparing
one brand to another is through the use of
advertisement.
4. To remind – advertising helps in brand recall and
reminds customers about the product from time
to time.
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Topic 2: Promotion
Advantages
Types of Media and Techniques Used in Advertising
▪ Relatively inexpensive
▪ Target marketing possible
Traditional Media and Techniques
Disadvantages
RADIO – a viable advertising vehicle in the Philippines
since 1922, radio is the most accessible media. Philippine ▪ Audio only
radio stations broadcast is either the AM or FM bands with ▪ Passive medium
AM stations broadcasting mostly talk, news or opinion
programs. On the other hand, FM stations primarily
broadcast music, with each radio station specializing on a
particular type, such as classical, hip-hop, rock or pop.
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Topic 2: Promotion

Traditional Media and Techniques

PRINT– the first magazine in the Philippines was printed in

1840’s while the first English newspaper was published and
circulated in 1898. Many advertisers still favor newspaper
as their vehicle of choice because of their national
circulation, population penetration, and pass-on reader
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Topic 2: Promotion

Traditional Media and Techniques

PRINT– the first magazine in the Philippines was printed in

1840’s while the first English newspaper was published and
circulated in 1898. Many advertisers still favor newspaper
as their vehicle of choice because of their national
circulation, population penetration, and pass-on reader
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Topic 2: Promotion

Advantages
Traditional Media and Techniques
▪ Audio, video, movement
TELEVISION (TV)– television has a strong influence in ▪ Target marketing possible
Philippine society since its introduction in the 1950s.
Television networks and stations broadcast through both
free and cable channels. The 3 largest stations in the Disadvantages
Philippines are ABS-CBN, GMA-7, and TV5. Similar to radio
some television stations select programming content to be ▪ Expensive
exclusively public affairs, entertainment, children’s program, ▪ Frequency necessary for
effectiveness
or educational TV.
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Topic 2: Promotion

Advantages
Alternative Media and Techniques
▪ Audio, video, movement
CINEMA– The first motion picture in the Philippines ▪ Larger than life
appeared in 1904. Since then, a large number of cinema ▪ Captive audience
houses and move theaters sprouted in major metropolitan ▪ Relatively inexpensive
cities, particularly in Metro Manila. During a low period in
the local film industry, most movie theaters folded up. At
present, the most extensive network of movie theaters is Disadvantages
owned by the SM (Shoemart) group. Every year, the local
▪ Not cost efficient
film industry receives a boost during the Metro Manila Film
▪ Limited to reminder
Festival, where only locally produced films are shown. advertising
▪ Short attention span
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Topic 2: Promotion

Advantages
Alternative Media and Techniques
▪ Relatively inexpensive
BILLBOARD– Relative low cost and exposure to heavy ▪ Larger than life
traffic along major thoroughfares have led to the popularity ▪ Exposed to many potential
of billboard advertisements. Despite increasing rental costs customers
and the imposition of government regulations on this type
of outdoor advertising, billboards continue to thrive and has Disadvantages
technologically evolved from traditional billboards to the
use of light-emitting-diodes (LED) ▪ Short messages only
▪ Reminder advertising only
▪ My damaged by elements
▪ Legal restrictions
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Topic 2: Promotion

Advantages
Alternative Media and Techniques
▪ Low cost
WEBSITES– Almost all legitimate companies have ▪ High level of detail
developed websites that customers can access for product ▪ Customized
information and services. Websites have become highly ▪ Interactive
interactive. However, the media suffer form clutter due to
the sheer number of websites currently online. As of Disadvantages
January 2013, there is a total of 634 million websites, with
almost 50 million added yearly. ▪ Must be upgraded regularly
▪ Clutter
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Topic 2: Promotion

Advantages
Alternative Media and Techniques
▪ Low cost
SOCIAL NETWORK SITES– The large number of social ▪ High level of detail
media users all over the world has led to the popularity of ▪ Well –segmented audience
social networking sites as media for advertising. Statistics
indicate that there are currently over 1 billion active Disadvantages
monthly users of Facebook, 200 million of Twitter, with 187
million members on Linkedin. ▪ Maybe ignored
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Topic 2: Promotion

Advantages
Alternative Media and Techniques
▪ Pinpointed advertising
DIRECTORY ADVERTISING– More commonly known as ▪ Timely
the “Yellow Pages,” this medium has been declining rapidly.
This is bought about by an increasing number of households
discontinuing landline subscriptions. Moreover, the Disadvantages
availability of online search engines has made the search
for specific products and services more convenient. ▪ Accompanies declining
technology
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Topic 2: Promotion

Advantages
Alternative Media and Techniques
▪ Unique exposure
PRODUCT PLACEMENT– Product placement is an ▪ Well segmented audience
advertising technique used by companies to promote
products subtly through a non traditional advertising
technique, e.g. appearances on film, television or other Disadvantages
media. Perhaps the most memorable product placements
would be Pierce Brosnan’s use of a BMW automobile in his ▪ Little stand-alone value
James Bond films, or a brief scene insertion of John Lloyd ▪ Sometimes used abusively
Cruz taking a Biogesic tablets to relieve him of his headache
in a movie. (Can you sight some products that uses
movies/tv dramas as their advertising platform?)
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Topic 2: Promotion

Advantages
Alternative Media and Techniques
▪ No cost
E-MAIL ADVERTISING– There are currently 2.2 billion e- ▪ Highly targeted
mail users worldwide, transmitting 144 billion emails daily.
The biggest downside to email advertising is that 68.8% of it
is classified as “spam” and is often unopened and unread by Disadvantages
the recipient.
▪ Clutter
▪ Messages sometimes
classified as “spam”
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Topic 2: Promotion

Advantages
Alternative Media and Techniques
▪ Mobile
TRANSIT ADVERTISING– Buses and jeepneys in the ▪ Relatively inexpensive
Philippines ply the same route everyday. An advertising ▪ Consistent daily audience
signage on the side or back of a bus, a jeepney spare tire
cover or perched atop a taxicab can create god brand recall
for the market. Disadvantages

▪ Short message only

▪ Reminder advertising only
▪ May be damaged by the
elements
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Topic 2: Promotion

Advantages
Alternative Media and Techniques
▪ Well segmented audience
ONLINE ADS– In the 2.4 billion Internet users worldwide, ▪ Low cost
1.1 billions are form Asia. These figures have led to the
popularity of internet advertising, which permits target
marketing through the use of cookies generated by a web
page server. Disadvantages

▪ Easy to ignore
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Topic 2: Promotion

Personal Selling - is a face to face technique

wherein the salesperson uses his or her persuasive
skills to convince a customer to buy a particular good
or service.

- Is necessary in the marketing mix when

products/services are highly technical, fairly complex,
durable, expensive or not actively sought out by
customers, especially when tis customers are
institutional in nature.
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Topic 2: Promotion

Public Relations- is the practice of

communicating with the media and the general public
in order to establish a strong relationship between
target audience and an organization, company, or
individual, and create and maintain a positive image
of the organization.

- Some public relations activities may include: press

releases, newsletters, social media, attendance of
public events, participating events, hosting charitable
events.
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Topic 2: Promotion

Publicity - is a communication written and produced by

public relations professional intended to create a favorable
public image for a client.

- usually takes the form of text, audio and video news

releases about an individual or organization. They are
distributed to newspapers, magazines, radio and television
stations, internet sites, and other forms of media.

- Is regarded as a more effective promotional tool compared

to advertising, because it reaches a wider audience, making
it more cost effective and may have a longer recall by the
general public than advertisement.
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RECAP

Place or its common name in the Marketing Mix is

“distribution” is about how a business gets it products
to the customers. It is also aims to make the products
available in the right location at the right time in the
right quantities.

While Promotion aims to increase awareness of the

product or service, generate sales and create brand
loyalty; is likewise important in the Marketing Mix.
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ACTIVITY

Refer to pop up questions in this lesson.

 REFERENCES
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So, Real C., Torres, Oscar G., Principles of Marketing., Vibal

Group Inc., 2016

Zarate, Cynthia A., Principles of Marketing for Senior High

School., C & E Publishing, Inc., 2017
 NEXT LESSON
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• Managing Marketing Effort

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