Marketing is all about the activities a business undertakes to get customers to buy their products.
The marketing mix for a business is all about how it combines the 4Ps to achieve this.
- Product – the features and appearance of goods and services
- Place – the point where products are made available to the customers
- Price – how much customers pay for the product
- Promotion – how customers are informed about the product and activities to encourage purchase
NOTE: DON’T GET THE ‘PLACE’ OF THE MARKETING MIX CONFUSED WITH BUSINESS LOCATION, THEY ARE NOT NECESSARILY THE SAME THING
If the business has lots of competitors then it might follow one of the marketing strategies below:
Low cost strategy
- If the product is low cost it is likely it will be a mass market product
- The product will be low priced (no frills) to gain sales
- The promotion will be through the mass media such as radio and newspapers
- Placement of the product will be in supermarkets or where the mass market can gain access to it
Differentiated product strategy
- If the product is high cost it is likely it will be a niche market product
- The product will be high priced with added value through its uniqueness
- The promotion will be through the niche market media such as specialist magazines
- Placement of the product will be in exclusive locations
Two factors which impact on the marketing mix are:
- changing consumer needs / demands – think about what consumers want these days e.g. low fat, environmentally friendly, not tested on animals etc.
- changing technology – the growth of e-commerce means a business has a wider (global) audience, consumers can easily compare products and businesses, companies can use social media and other technology for research, social media can be used for promotion
Read the case study below and then try the sample exam question:
Outline one method of promotion which might be appropriate for Meringue (2 marks) Remember, ‘outline’ questions require context!!!
Click here to check your answer against the mark scheme.