The Marketing Mix
Business: Edexcel GCSE, topic 1.4.5
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.
Test yourself on The Marketing Mix
A company chooses to create a Snapchat filter to promote their sunglasses. Which of the 4 Ps does this involve?
Which of these things about marketing mix are correct?
Which aspects of the marketing mix does promotion influence?
What are the 4 P's of the marketing mix?
Which of these businesses sells luxury goods?