Context

You are working as a freelance business consultant.  Shakti is the Managing Director of a medium-sized company called Hard Graft Tools, which produces power tools.  Hard Graft Tools currently sells its products to retailers.  In a change of strategy, Hard Graft Tools is now planning to withdraw from the retailers and sell the tools direct to consumers via new shops as well as online.  Shakti would like you to help the Senior Management Team (SMT) to understand how to start marketing the tools directly to customers.  Shakti invites you to visit the Hard Graft Tools head office to see the products and to have an initial discussion with the SMT.

Task 1

Shakti asks you to write a detailed paper for the SMT to read before you meet for your initial discussion.  Write a paper for the SMT about the role of the product or service and the role of place in the marketing mix.  The paper must be at a suitable level and in a suitable format for senior managers.

You must make sure you include the following topics:

• An analysis of how the features and benefits of a product or service can be used in the marketing mix. (AC 1.1)
• A description of the use of the marketing mix at each stage of the Product Life Cycle (AC1.2)
• An analysis of the role of direct and indirect distribution channels to move products and services from the provider to the buyer. (AC 3.1)
• An analysis of the use of intensive distribution, selective distribution and exclusive distribution in the market coverage of products and services. (AC 3.2)