Terms

• Channels of distribution – how a product gets from the

  producer to the final consumer
• Wholesaler – a business that buys products in bulk from

  producers and then sells them to retailers
• Retailer – shops and other outlets
• Middlemen – intermediaries in the channels of distribution e.g.

  wholesaler, retailers
• Direct selling – the product is sold directly by the producer to

  the final consumer without the need for any middlemen
• Promotion – marketing activities used to communicate with customers and potential customers to inform and persuade them to buy a business’ products
• Advertising – paid communication with consumers which uses printed and visual media. The aim is to inform and persuade consumers to buy a product
• Informative advertising – information about the product is communicated to consumers to create product awareness and attract their interest
• Persuasive advertising – communication with consumers aimed at getting them to buy a firm’s product rather than a competitor’s product
• Below-the-line promotion – promotion that is not paid for communication but uses incentives to encourage consumers to buy
• Sales promotion – incentives used to encourage short-term increases in sales or repeat purchases
• Personal selling – sales staff communicate directly with the consumer to achieve a sale and form a long-term relationship between the firm and consumer
• Direct mail – also known as “mailshots”, printed materials which are sent directly to the addresses of the customers
• Sponsorship – payment by a business to have its name or products associated with a particular event
• Marketing budget – the amount of money made available by a business for its marketing activities during a particular period of time
• E-commerce – the use of internet and other technologies used by businesses to market and sell goods and services to customers