The Marketing Mix

Marketing Mix and the Nature of the Market

Each element of the marketing mix often influences other elements of the marketing mix. A successfully integrated marketing mix can lead to a competitive advantage. The marketing mix is made of the 4 Ps:

Place

The place where a business sells its product is important as different customers shop in different ways.
Older people tend to do less shopping online, and so if a business decides to sell mainly online then it may have to adjust the price, product, and promotion to make sure they're targeting the right people.

Promotion

Certain methods of promotion are better suited for different demographics and therefore different target markets.
Promotion changes all the time and firms increasingly use social media and search engines like Google to promote their products.
This affects the price, place and product aspects of the marketing mix.

Price

The price that a business decides to charge for their product affects:
- Who they need to promote to.
- The business' target market and therefore the optimal place to sell it.
  - Since the target market has changed the product needs to change to suit the needs of the customers.

Product

As with the other elements of the marketing mix, the product that the company decides to sell will suit the needs of a specific target market.

The Marketing Mix and the Nature of the Market

The nature of the market affects the 4 elements of the marketing mix (the 4 P's):

Price

Price is one of the main factors that customers use to make decisions. A business should price a product so that they attract customers and cover their costs in order to make the most amount of profit possible.
Luxury goods and services usually have high prices. The clothes that consumers buy in Gucci are usually more expensive than the clothes that they buy in Primark or Zara.

Product

The product or service that a company sells should meet customers’ needs and wants to the same standard (or better) than competitors.
Choosing a target market and designing a product that meets customers’ needs and wants is important.
- Google Glass was a product launched by Google in 2013, however, it was not clear which features consumers wanted. The product failed and is no longer produced.

Promotion

Promotion describes the ways that a business tries to inform consumers about a product (or service) and tries to persuade them to buy it.
If consumers are not aware about a product then they are unlikely to buy it. Businesses need to inform and remind consumers about a product so that they are more likely to buy it.

Place

Products and services should be sold where consumers want to buy them.
- For a company like Dell, selling computers in a children’s toy shop like Hamleys may not be sensible.
Where a product is distributed affects the price that a firm can charge for it. If products are sold through e-commerce websites, then price comparison may be easier and more practical than in a shop. Firms may have to charge lower prices online because of this.

Marketing Mix - The 4 P's

The 4 P's of the marketing mix are very important for businesses. They determine what kind of business a business is, which people the business sells to and where they sell their products. Perfecting the marketing mix:

Cake

Price, promotion, product and place are all like ingredients in a cake.
Every cake has different ingredients and different combinations produce different results.

Aston Martin

Sports cars like Aston Martins sell at premium prices.
Customers usually want to see and test drive expensive cars like this. A car showroom should be near traffic of the kind of people who buy Aston Martins (40-60 year old men rather than 15 year old boys).
Aston Martin’s showroom in Derby is within 100m of Derbyshire County Cricket ground and an upmarket Nuffield Health Club.
All of the elements of the marketing mix are integrated into one.

1Enterprise & Entrepreneurship

1.1The Dynamic Nature of Businesses

1.1.1The Dynamic Nature of Businesses

1.1.2Risk & Reward

1.1.3The Role of Business Enterprise

1.1.4The Role of Business Enterprise 2

1.1.5The Role of the Entrepreneur

1.1.6End of Topic Test - Dynamic Nature of Business

1.1.7Grade 9 - Dynamic Nature of Business

1.2Spotting a Business Opportunity

1.2.1Customer Needs

1.2.2Market Research

1.2.3Market Segmentation

1.2.4The Competitive Environment

1.2.5Primary & Secondary Market Research

1.2.6End of Topic Test - Business Opportunities

1.2.7Application Questions - Business Opportunities

1.2.8Exam-Style Questions - Market Segmentation

1.3Putting a Business Idea into Practice

1.3.1Business Aims

1.3.2Business Objectives

1.3.3Business Revenues & Costs

1.3.4Costs - Calculations

1.3.5Revenue - Calculations

1.3.6Business Profits & Break-Even Analysis

1.3.7Profits & Losses - Calculations

1.3.8Interest - Calculations

1.3.9Cash & Cash Flow

1.3.10Cash & Cash Flow 2

1.3.11Cash Flow - Calculations

1.3.12Sources of Business Finance

1.3.13End of Topic Test - Business in Practice

1.3.14Grade 9 - Business in Practice

1.3.15Exam-Style Questions - Business in Practice

1.4Making the Business Effective

1.4.1The Options for Start-Up & Small Businesses

1.4.2Limited Liability

1.4.3Franchising & Not-For-Profits

1.4.4Business Location

1.4.5The Marketing Mix

1.4.6Business Plans

1.4.7End of Topic Test - Effective Business

1.4.8Application Questions - Effective Business

1.4.9Exam-Style Questions - Business Plans

1.5Business Stakeholders

1.5.1Business Stakeholders

1.5.2Technology & Business

1.5.3Legislation & Business

1.5.4Legislation & Business 2

1.5.5The Economy & Business

1.5.6External Influences

1.5.7End of Topic Test - Business Stakeholders

1.5.8Grade 9 - Business Stakeholders

2Building a Business

2.1Growing the Business

2.1.1Business Growth

2.1.2Finance

2.1.3Changes in Business Aims & Globalisation

2.1.4Ethics & Business

2.1.5The Environment & Business

2.1.6End of Topic Test - Growing a Business

2.1.7Application Questions - Growing a Business

2.1.8Exam-Style Questions - Business Growth

2.2Making Marketing Decisions

2.2.1Product

2.2.2Product Life Cycle

2.2.3Price

2.2.4Pricing Methods

2.2.5End of Topic Test - Product & Price

2.2.6Grade 9 - Product & Price

2.2.7Promotion & Advertising

2.2.8PR & Sales Promotions

2.2.9Sponsorship & Product Placement

2.2.10Promotional Mix

2.2.11End of Topic Test - Promotion

2.2.12Application Questions - Promotion

2.2.13Exam-Style Questions - Promotional Mix

2.2.14Place & Wholesalers

2.2.15Direct to Consumer

2.2.16E-commerce & M-commerce

2.3Making Operational Decisions

2.3.1Job Production

2.3.2Batch & Flow Production

2.3.3Working with Suppliers

2.3.4Effective Supply Chains

2.3.5Just In Time & Just In Case

2.3.6Managing Quality

2.3.7Total Quality Management

2.3.8The Sales Process

2.3.9End of Topic Test - Operational Decisions

2.3.10Grade 9 - Operational Decisions

2.3.11Exam-Style Questions - Managing Stock

2.4Making Financial Decisions

2.4.1Gross Profit & Net Profit - Definitions

2.4.2Gross Profit - Calculations

2.4.3Net Profit - Calculations

2.4.4Rate of Return

2.4.5Rate of Return - Calculations

2.4.6Research & Financial Data

2.4.7Marketing Data

2.4.8Percentage Change - Calculations

2.5Making Human Resource Decisions

2.5.1Organisational Structures

2.5.2Organisational Structures 2

2.5.3Recruitment

2.5.4Effective Recruitment

2.5.5Training a Workforce

2.5.6Motivating a Workforce

2.5.7End of Topic Tests - Human Resources

2.5.8Application Questions - Human Resources

2.5.9Exam-Style Questions - Human Resources

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