Integrating Elements of the Marketing Mix (AQA GCSE Business)

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

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

• 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

• 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

• 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

• 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