The marketing mix
see p. 80
What you need to know •
Outline the four elements of the marketing mix: price, product, place and promotion.
•
Explain how these elements work together.
The marketing mix is made up of four elements – the 4Ps – that are needed to successfully sell a product and meet customers’ needs. The right product must be sold at the right price and in the right place. Successful promotion supports this. 1 Product
2 Price The price must reflect what customers are willing and able to pay.
Who is the product targeted at?
It must also cover the costs of production so that the business makes a profit.
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The product must meet the needs of the customers. What features do customers want?
How does it stand out from other similar products? Does it have a clear USP?
3 Place Where the product is sold.
Businesses need to consider the best place to sell the product, e.g. in: a physical shop or online
•
a way to suit the rest of the marketing mix, e.g. a luxury product in an exclusive store with fewer outlets.
4 Promotion
Communicating the product’s features and benefits to the customer.
SA
M
•
Making customers aware of products, e.g. by advertising and sales promotions. Using the right promotional method is important, e.g. giving out leaflets might be more suitable for a local business.
How the marketing mix works together All of the 4Ps must work together. They must also be aimed at the same target market. For example, selling a basic product at a high price and advertising it in a high-end magazine will not be effective because customers will not pay a high price for a basic product, and readers of high-end magazines are unlikely to buy a basic product.
Practise it!
Remember it!
1
Identify the four elements of the marketing mix. (4 marks)
•
The marketing mix consists of the 4Ps – price, product, place and promotion.
2
Explain why a high price may not be suitable for an economy can of baked beans sold by a discount retailer. (2 marks)
•
All elements must work together as they affect one another – e.g. you cannot charge a high price for a product and sell it in a store that sells economy products.
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