Integrating Elements of the Marketing Mix (AQA GCSE Business)

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Lisa Eades

Written by: Lisa Eades

Reviewed by: Steve Vorster

Combining the Elements of the Marketing Mix

  • An integrated marketing mix is one which correctly combines each element in the best possible way

  • A change in one element can have a significant impact on the others

How Changes to one Element can Change the Entire Mix


Changes to the Product


Changes to the Price

  • The product/service is at the heart of the marketing mix, as it is what the customer is buying

    • The product determines the price, the target audience, and the promotion strategy

  • If the product changes, then all other elements of the mix will likely need to change

    • E.g. if a business decides to launch a premium version of its product, it may need to increase the price, target a different audience and use a different promotion strategy to reflect the new product's value

  • The price of a product is closely linked to its perceived brand value

    • If a product is priced too high, it may be perceived as too expensive by the target audience leading to lower sales

    • If a product is priced too low, it may be perceived as low quality leading to lower sales

  • Increasing the price may require changes to the promotion strategy, which are aimed at convincing consumers of the products value


Changes to the Promotion


Changes to the Place

  • The promotion strategy can affect the price and distribution channels

    • E.g. If a business decides to launch a high-end promotion strategy, it may need to increase the price to reflect the product's value

  • The distribution/sales channels can affect the price and promotion strategy

    • E.g. if a business decides to use exclusive distribution channels, it may need to increase the price to reflect the exclusivity of the product

  • An integrated marketing mix can help build a competitive advantage by creating a cohesive marketing strategy that resonates with customers and sets the business apart from its competitors

Nike's Integrated Marketing Mix


Product


Price

  • The company's products are known for their high quality and innovative design

  • This has helped to create a perception of exclusivity and quality

  • Nike's pricing strategy is focused on premium prices that reflect the value of the product 

  • This reinforces the brand's premium positioning


Promotion


Place

  • Nike's promotion strategy is focused on creating a unique brand image and messaging that resonates with its target audience

  • E.g. The company's "Just Do It" campaign is focused on celebrating athleticism and determination

    • This aligns with the brand's reputation for being a leader in sports apparel

  • Nike's distribution strategy is focused on creating a seamless online and offline shopping experience

    • This makes it easy for customers to purchase the brand's products

The Evolving Marketing Mix

  • A product's marketing mix is likely to change over time as it moves through the product life cycle and in response to changes in the external environment

The product life cycle and the marketing mix

  • The marketing mix will change as a product moves through the stages of the product life cycle

The Marketing Mix at Different Stages of the Product Life Cycle


Stage


Marketing Mix Elements

Introduction

  • Products may be relatively basic, single version with limited features

  • It may be sold at a high price (market skimming) to recover development costs

  • Significant promotional efforts are needed to build awareness and demand

  • Limited distribution of the product to target specific market segments is likely

Growth

  • Product extensions with added features or new models are likely to be introduced

  • The selling price may be maintained or lowered slightly to attract more buyers

  • There will be continued promotion to build brand loyalty and attract new customers

  • A wider range of distribution channels will be established to increase product availability

Maturity

  • The product will be diversified, with multiple versions

  • Prices may be lowered to remain competitive and defend market share

  • Promotion shifts to highlighting product differences and reinforcing brand image

  • Products will be intensively distributed to maximise market coverage

Decline

  • Products may be simplified, with less investment in product development

  • Prices may be lowered further to clear stock and attract remaining buyers

  • There will be minimal promotion, focused on retaining loyal customers

  • Distribution will be selective, with less availability through non-profitable distribution channels

The external environment and the marketing mix

  • Changes in the external environment can also have a significant impact on elements of the marketing mix

Economic environment

  • Changes in consumer income levels or economic conditions may require price adjustments (higher or lower).

  • An economic downturn may require more aggressive promotion and price discounts

    • E.g. John Lewis introduced its AnyDay range across homewares and clothing to retain customers whose incomes were squeezed during the recent financial crisis

Competitive environment

  • New competitors entering the market may force changes in pricing, product features, or promotional strategies

  • Innovative products from rivals may require product improvements or rebranding

    • E.g. The entry of rivals such as Netflix into the entertainment streaming market put pressure on Sky to repackage its programming and offer more frequent price promotions

  • New laws or regulations could impact product labelling, ingredients or production methods

  • Advertising restrictions may limit promotional options or require changes to promotional messaging

    • E.g. A successful legal challenge in 2024 forced Tesco to change its in-store promotions as they were deemed to be too similar to those of its rival Aldi

Technological environment

  • Advances in technology may lead to new product features, more efficient production or new distribution channels

  • The rise of e-commerce and digital marketing may require adjustments to place and promotion methods

    • E.g. Even the smallest local restaurants can now make use of services such as Just Eat to deliver meals, requiring them to set up e-commerce facilities

Social and cultural environment

  • Changing consumer preferences, values or trends may require changes to product design or packaging

  • Social trends towards ethical behaviour or awareness of environmental issues may influence promotional messaging or product/packaging design

    • E.g. Lego is in the process of improving the packaging of its construction sets by switching to paper instead of plastic

Examiner Tips and Tricks

When recommending changes to the marketing mix in 9-mark questions, carefully consider the nature of the product and the needs of customers. Although you may have an innovative suggestion, you need to make sure it is achievable, given the resources the particular business has, and appropriate to meet business objectives.

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Lisa Eades

Author: Lisa Eades

Expertise: Business Content Creator

Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.

Steve Vorster

Author: Steve Vorster

Expertise: Economics & Business Subject Lead

Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.