The Marketing Mix & Wholesaler Decisions

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  • 0:00 Marketing to Retailers
  • 0:54 Marketing Mix Revisited
  • 1:47 How Marketing Mix…
  • 2:40 Example
  • 3:42 Lesson Summary
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Lesson Transcript
Instructor: Kevin Newton

Kevin has edited encyclopedias, taught middle and high school history, and has a master's degree in Islamic law.

Just because companies sell to you doesn't mean that they themselves aren't the targets of marketing. In this lesson, we'll see how wholesalers use the marketing mix.

Marketing to Retailers

Chances are when you think about marketing, you think of what retailers do to get you to buy something. Whether it is producing ads that show beautiful people using their product and creating the idea that you could be one of the beautiful people if you just bought into what they were selling, or if it is about making something a necessary good in your life, retailers have gotten their practice of selling goods to individuals down to a fine art.

However, don't think that there aren't people marketing to them as well. Wholesalers--those companies that sell mass quantities to retailers to in turn be sold to customers--have to think of innovative ways to get their goods to market. In order to do that, they have to woo retailers. In this lesson, we'll see how they apply the ideas of the marketing mix in order to create wholesale level purchases.

Marketing Mix Revisited

First, let's review this idea of the marketing mix. Remember that the marketing mix is the proportion of weight given to a variety of factors in helping a company persuade a customer to buy something. There are a number of factors involved, with the four Ps being historically the most common. In case you were curious, those four Ps are price, product, place, and position. In other words, different customers will warm to different combinations of the price of a product, the product itself, the ability to acquire the product, and the reputation of the product.

This keeps in mind that all customers are different, and there is no one happy way to make all customers content. A hamburger for a low price off a major highway from a reputable chain may satisfy someone on a road trip, but it likely won't do the trick for someone on a date who is looking to impress their partner.

How Marketing Mix Affects Wholesale

This need to meet the four Ps applies to retailers as well. After all, if we are to believe--and quite rightfully so--that different retailers offer different qualities of goods, then we should acknowledge that the wholesalers offer different qualities of goods too.

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