marketing mix: 4Ps

• what is meant by the term 'marketing mix'?

  the marketing mix is a combination of product, price, promotion and place strategies used by a business to achieve its marketing objectives. these 4 elements are interconnected and must work together to create a successful strategy.
• what does 'product' mean in the marketing mix?

  a product is any good, service, or idea that a business creates to meet the wants and needs of a customer; encompassing tangible and intangible aspects.
• what is a 'product portfolio'?

  the range of products a business offers, while a strategic portfolio can spread fixed costs, allow for targeting wider markets, reduce risks, and create opportunities for growth
• what is meant by the term 'brand' in marketing?

  a brand is a name, term, sign, symbol, or design that identifies a sellers products and differentiates them from those of competitors.

  -> a strong brand can create loyalty, differentiate products, and give flexibility in pricing
• define USP (unique selling point)

  a specific factor that differentiates a product or service from its rivals, giving it a competitive edge. it can help justify a premium price and attract way more customers.
• what is 'product differentiation'?

  involves making a company's products different from competitors through methods such as; unique features, branding, packaging, add-ons, and promotion.
• why is having the right products important to both a business and its stakeholders?

  For a business: The right products can increase sales, market share, brand reputation, and profitability. For stakeholders: Customers get products that meet their needs, while employees have job security in a successful business. Poor products hurt reputations and profitability.
• what is the 'product life cycle' concept?

  it describes the stage a product goes through in the market, from its introduction, to its eventual decline, as sales rise, stabilise and fall.
• what are stages in the product life cycle?

  • development: product research and development, creates a prototype
  • introduction: product launch, slow sales
  • growth: sales rapidly increase
  • maturity: sales growth stabilizes
  • decline: sales fall
• what is an 'extension strategy' in marketing?

  a medium- long term plan to lengthen the product life cycle or increase sales during maturity or decline stages
• what are some examples are common extension strategies?

  • new features
  • wider product range
  • targeted marketing
  • brand/packaging changes
  • new quality levels
  • new markets
  • new promotions
  • adjusting pricing strategies
• how would you construct and interpret a product life cycle diagram?

  it shows sales (and sometimes profits) over time. a line graph displays how the sales move up and down during the different phases, and identifies key phases such as when to initiate an extension strategy.
• how do extension strategies positively impact a business?

  • increased sales
  • extend products revenue-generating life
  • attract new customers
  • maintains market share
• how do extension strategies negatively impact a business?

  • added costs
  • confuses customers
  • risk of failure
• what is the relationship between the plc and cash flow?

  • the relationship can be shown by plotting the cash flow onto a PLC diagram
  • development & introduction: cash flows are often negative due to R&D and marketing expenses
  • growth & maturity: provides positive cash flow
  • decline: decreasing cash flow
• what is the purpose of analyzing PLC and extension strategies for different products?

  analyzing helps businesses plan and allocate resources effectively, guiding decisions on whether to invest further in a product or prepare for its phase out.
• what is the value of the of the product life cycle to s business and its stakeholders?


  • it aids businesses predict and prepare for challenges, make appropriate decisions and plan investments;
  • stakeholders can also see potential challenges (such as the decline phase) in a business model.
• how can a boston matrix be used to manage a product portfolio?

  it classifies products based on market share and market growth rate
• what are the classifications in the boston matrix?

  1. stars -> high market share, high growth
  2. cash cows -> high market share, low growth
  3. question marks/ problem childs -> low market share, high growth
  4. dogs -> low market share, low growth
• what is the value of using the boston matrix for a business and its stakeholders?

  the matrix provides a framework to help make strategic portfolio decisions and allocate resources based on their classification

  • for stakeholders, the matrix can show what a company is good at, and where they might be investing for the future
  • however its a generalisation
• pricing strategies used to determine the appropriate price for a product...

  • penetration: low price to gain market share
  • skimming: high price for new, innovative products
  • cost-plus: price set at cost plus a markup
  • competitive: set a price near competitors
  • psychological: prices set to attract certain customers (eg. 9.99 or £99)
  • contribution: covering variable costs and contribute to fixed costs
• how does a business type and situation affect its choice of pricing strategy?

  the product type, level of competition, the products lifecycle, a company's image and goals all affect its choice of pricing strategy.

  • established companies with many competitors may use a competitive strategy, while start ups may use penetration
  • luxury goods usually have a price skimming strategy
• why is it important for a business to select an appropriate pricing strategy?

  • it impacts revenue, market share, brand image, and profitability
  • incorrect prices might lead to lower sales or lower perceived product quality
• how do pricing decisions impact a business and its stakeholders?

  • the company can see increased revenue and profit if prices are correct, or low revenue if prices are set to high
  • stakeholders will have better quality products at prices they can afford, if products are not correct, the opposite
• what is 'promotion' in the marketing mix?

  promotion includes all activities a business undertakes to communicate and persuade target customers to buy its products and/ or services.
• What are "above-the-line" promotion strategies?

  • Involve mass media advertising
  • Include television, radio, newspapers
  • Aim to increase brand awareness
  • Target a wide range of customers
• What are "below-the-line" promotion strategies?

  • Involve targeted promotional activities
  • Include sales promotions and direct marketing
  • Encompass personal selling and public relations
  • Involve sponsorship
• How does a company's type and situation affect its choice of promotion strategy?

  Large companies use multiple channels for promotion
• Why is selecting the most appropriate promotional strategy important?

  The right promotion builds brand awareness and generates sales
• How do promotional decisions impact a business and its stakeholders?

  Effective promotion increases sales and brand value
• What is "place" in the marketing mix?

  • Relates to product distribution
  • Includes distribution channels
  • Covers store locations
  • Involves overall product availability
• What are some different distribution channels used by businesses?

  Direct sales, retail stores, wholesalers
• What is "multi-channel distribution"?

  Using several methods to reach customers
• Why is selecting the most appropriate distribution channel important?

  The right channels help reach target markets effectively
• How do distribution channel decisions impact a business and its stakeholders?


  Good distribution increases revenue and efficiency