The Marketing Mix

• Marketing mix

  The different elements that can be used to create the image that a business believes will give it the best chance of selling products and services to consumers
• The four Ps of the marketing mix

  • Product
  • Price
  • Place
  • Promotion
• Product

  • Understanding customer needs is vital to ensure that a business is able to supply products that customers want to buy, at a price that allows the business to make a profit
• Invention


  Creating something that did not previously exist, eg self-tying shoelaces
• Innovation


  The successful commercialisation of an invention, or the adaptation of a product over time to improve its features
• Factors considered when designing a product

  • Function - what the product should do and how well it does it
  • Cost - how cost-effective the product will be to manufacture
  • Aesthetics - how the product appeals to consumers
• Product life cycle

  1. Introduction

  2. Growth

  3. Maturity

  4. Decline
• Level of sales


  Determines where a product is in its life cycle
• Factors affecting product life cycle

  • How dynamic the market is
  • How strong the brand image behind the product is
• Ways to extend product life cycle

  1. Product differentiation

  2. Reducing the price

  3. Rebranding

  4. Repositioning

  5. Increasing marketing activity
• Unique selling point (USP)

  The distinctive factors that make a product or brand stand out from competitiors
• Marketing mix

  The different elements that can be used to create the image that a business believes will give it the best chance of selling products and services to consumers
• Elements of the marketing mix

  • Product
  • Price
  • Place
  • Promotion
• Price


  The amount that must be paid to purchase a product or access a service
• Price

  • Customers need to believe there is enough value in the product or service to be willing to pay the price
  • Setting the price can be tricky as there are many influences on it
• Influences on price

  • Cost of making the product
  • Quality of the product
  • Brand image of the product
  • Demand and supply of the product
• Pricing strategies

  Methods businesses use to set their prices
• Skimming


  Setting the selling price of a product initially high and slowly lowering it over a period of time (short-term pricing method)
• Cost-plus pricing


  The price of the product is set at the cost of the product plus a percentage added on as a mark-up, which acts as profit
• Penetration pricing

  Launching a product at a lower price, or introductory offer, to encourage customers to buy it, especially used for products in a highly competitive market.
• Competitor pricing


  Basing the selling price on how much rivals charge for their products
• Promotional pricing


  A short-term pricing policy used as part of a promotional campaign or sale
• Marketing mix

  The different elements that can be used to create the image that a business believes will give it the best chance of selling products and services to consumers
• Place

  • Concerned with how goods and services reach customers
  • Includes how customers access products
  • Includes which methods of transport will be involved in moving them
• Physical distribution channels

  The different ways of moving goods from producers to customers
• Physical distribution channels

  • Producers to customers
  • Producers to retailer - A store (or person) that sells products directly to customers.
  • Producers to e-tailer - A business that sells goods and services using the internet.
• Direct channels of distribution

  Only involve the producer and the customer
• Direct channels of distribution


  • Producer sells products directly to customers in a physical shop
  • Producer sells products directly to customers using a website
  • Producer sells products directly to customers through the post
• Indirect channels of distribution

  Introduce an close intermediary A person or organisation that acts as a link between other parties. into the distribution process
• Indirect channels of distribution

  • Make it easier for producers to distribute their products
  • Make it more convenient for consumers to buy those products
• Indirect channels of distribution

  • Retailers
  • E-tailers
• Digital distribution channels

  Goods and services sold in digital format, meaning there is no physical item to move
• Digital products

  • E-books
  • Music
  • Video games
  • Software
• Streaming


  Listening to music or watching video in 'real time', instead of downloading a file to your computer and watching it later
• Digital distribution channels

  • Products available for customers to buy at any time
  • Customers can access the products immediately
  • Not suitable for all products
  • Can lead to problems of illegal copying and sharing of downloaded items
• Marketing mix

  The different elements that can be used to create the image that a business believes will give it the best chance of selling products and services to consumers
• Elements of the marketing mix

  • Product
  • Price
  • Place
  • Promotion
• Promotion

  • Inform consumers of a new product or service
  • Persuade consumers to buy a product or service
  • Remind consumers about the benefits of a product or service
• Promotional methods

  • Point of sale
  • Advertising
• Point of sale promotion


  Promotions designed to persuade consumers to make a purchase by offering an enticement where the purchase takes place