4.2.1

Marketing Mix

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The Marketing Mix

The marketing mix is the combination of factors (the '7Ps') which affect a customer’s purchasing decision. Customers may buy a product if they find each of the marketing mix factors satisfactory.

People

People

  • People is one of the 7 Ps and includes customer-facing staff, such as customer service assistants, and the employees involved in a transaction when a customer purchases a product or service.
    • For example, Marks & Spencer prides itself on the quality of its customer service which suggests that the ‘People’ factor of the marketing mix is valued by the customers of this business.
Process

Process

  • Process is one of the 7 Ps and includes the systems in place to support the transaction which the customer must deal with to complete the transaction successfully.
  • For example, some doctor’s surgeries have now introduced on-line booking systems which suggests that the ‘Process’ factor of the marketing mix is valued by the customers wishing to visit the surgery.
Physical environment/evidence

Physical environment/evidence

  • The physical environment or physical evidence is one of the 7 Ps and includes physical premises, the design, and layout of premises and the condition and placement of products within a store.
4 Ps

4 Ps

  • These three Ps are in addition to the existing 4Ps in the marketing mix:
    • Product.
    • Place.
    • Price.
    • Promotion.
Changing the marketing mix

Changing the marketing mix

  • As market conditions and customer tastes and preferences change, a business may update its marketing mix.
  • For example, Morrisons used to emphasise the importance of its physical stores, which relates to ‘Physical evidence’, but now offers online shopping, which suggests it has re-focussed some of its effort on the importance of ‘Process’.

Factors Influencing the Marketing Mix

When a business is deciding its marketing mix, it may consider the type of product being sold and the influence this may have on the overall decision.

Availability

Availability

  • Convenience items, such as basic groceries, need to be accessed quickly by customers so businesses may focus on marketing mix factors related to speed and availability.
Product information

Product information

  • Shopping items, such as computer tablets and clothes, may be considered for purchase by customers for a longer period so a business may focus on the customer service ‘people’ factor so that customers can access product information easily.
Luxury products

Luxury products

  • Specialty products, such as cars and jewellery are luxury purchases for customers. Consumers who buy luxury goods may expect sophisticated stores and customer service processes to support the transaction. Businesses operating in luxury or specialty goods is likely to focus on processes & physical evidence, whilst making sure the other Ps are consistent with their brand.
Jump to other topics
1

Business Organisation & Environment

1.1

Introduction to Business Management

1.1.1Why Businesses Exist & Sectors
1.2

Types of Organisation

1.2.1Sole Traders1.2.2Limited Liability1.2.3Non-Profit1.2.4Franchising1.2.5End of Topic Test - Franchising
1.3

Organisational Objectives

1.3.1External Environments1.3.2Business Mission & Corporate Objective1.3.3Mission, Corporate Objectives & Strategy1.3.4SWOT Analysis1.3.5End of Topic Test - SWOT Analysis
1.4

Stakeholders

1.4.1Stakeholders
1.5

External Environment

1.5.1Social & Technological Environment1.5.2Lifestyle & Technological Environment1.5.3Corporate Social Responsibility1.5.4Economic Environment1.5.5Political & Legal Change
1.6

Growth & Evolution

1.6.1Growth & Retrenchment1.6.2Challenges of Growth1.6.3Growth Models1.6.4End of Topic Test - Diseconomies of Scale1.6.5Internationalisation1.6.6Sourcing Resources & Entering Markets1.6.7End of Topic Test - Internationalisation1.6.8Managing Internationalisation1.6.9Impact of Internationalisation
1.7

HL Only: Organisational Planning Tools

1.7.1Organisational Planning Tools
2

Human Resource Management

2.1

Functions & Evolution of Human Resource Management

2.1.1Setting Human Resource Objectives2.1.2Human Resource Management2.1.3Labour Turnover & Retention2.1.4Labour Productivity
2.2

Organisational Structure

2.2.1Organisational Structures
2.3

Leadership & Management

2.3.1Managers2.3.2Management Theories2.3.3End of Topic Test - Management
2.4

Motivation

2.4.1Motivating & Engaging Employees2.4.2Taylor's Theory2.4.3Maslow's Theory2.4.4Herzberg's Theory2.4.5Different Incentives2.4.6Evaluating Incentives
2.5

Organisational (Corporate) Culture

2.5.1Managing Organisational Culture2.5.2Organisational Structures
2.6

HL Only: Industrial/Employee Relations

2.6.1Improving Employer-Employee Relations2.6.2Case Study - The Winter of Discontent
3

Finance & Accounts

3.1

Sources of Finance

3.1.1Internal Sources of Finance3.1.2External Sources of Finance3.1.3Factors for Financing3.1.4End of Topic Test - Debt
3.2

Costs & Revenues

3.2.1Costs & Revenues
3.3

Break-Even Analysis

3.3.1Profit3.3.2Break-Even Analysis
3.4

Profitability & Liquidity Ratio Analysis

3.4.1Profitability Analysis
3.5

Cash Flow

3.5.1Cash Flow3.5.2Solutions to Cash Flow Problems3.5.3Improving Cash Flow & Profits
3.6

HL Only: Investment Appraisal

3.6.1Investment Appraisal
3.7

HL Only: Budgets

3.7.1Cash-Flow & Budgets
4

Marketing

4.1

The Role of Marketing

4.1.1Setting Marketing Objectives4.1.2Market Calculations
4.2

Marketing Planning

4.2.1Marketing Mix4.2.2Segmentation4.2.3Niche & Mass Markets
4.3

Market Research

4.3.1Market Research4.3.2Market Mapping4.3.3Methods of Market Research
4.4

The 4 Ps

4.4.1Product Decisions4.4.2Pricing Decisions & Price Skimming4.4.3Pricing Decisions & Price Penetration4.4.4End of Topic Test - Pricing & Competition4.4.5Promotional Decisions4.4.6Promotional Decisions 24.4.7Promotional Decisions 34.4.8Digital Marketing4.4.9Evaluating Digital Marketing4.4.10Case Study - The Marketing Mix & Promotion4.4.11Place & Distribution
4.5

HL Only: The Extended Marketing Mix

4.5.1The Extended Marketing Mix
4.6

HL Only: International Marketing

4.6.1International Marketing
4.7

E-Commerce

4.7.1E-Commerce
5

Operations Management

5.1

The Role of Operations Management

5.1.1Setting Operational Objectives
5.2

Production Methods

5.2.1Production Processes Overview5.2.2Production Processes5.2.3Production Efficiency5.2.4Technology & Production
5.3

HL Only: Lean Prodution & Quality Management

5.3.1Importance of Quality5.3.2Measuring & Identifying Quality5.3.3Total Quality Management5.3.4Evaluating Total Quality Management5.3.5Case Study - Toyota Production System
5.4

HL Only: Production Planning

5.4.1Capacity5.4.2Productivity & Efficiency5.4.3Technology & Efficiency5.4.4Improving the Supply Chain5.4.5Inventory5.4.6Outsourcing
5.5

HL Only: Research & Development

5.5.1Organisational Planning Tools

Practice questions on Marketing Mix

Can you answer these? Test yourself with free interactive practice on Seneca — used by over 10 million students.

  1. 1
    Which of the <b>7Ps</b> does customer facing staff meet?Multiple choice
  2. 2
    Pia Jewellery originally had several brick and mortar shops. Now, they have moved their business to be solely online. Which P in the marketing mix have they abandoned?Multiple choice
  3. 3
    If a business is selling smartphones, which of the following factors will be most important for marketing decisions?Multiple choice
  4. 4
    If a business sells groceries, which of the following factors will be most important for marketing decisions?Multiple choice
  5. 5
    Which type of product requires lots of product information?Multiple choice
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Market Calculations

Segmentation