The Marketing Mix (Edexcel GCSE Business)

An Introduction to the Marketing Mix

• The marketing mix (4Ps of marketing) provides a framework for businesses to create and implement successful marketing strategies

• The 4Ps represent the key elements of a marketing strategy: product, price, place, and promotion

• These four components work together to satisfy the needs and want of a target market while achieving the company's objectives

• By understanding and manipulating the marketing mix, businesses can differentiate themselves from competitors

• The marketing mix is an essential tool for any company looking to maximise its marketing impact and achieve long-term success

Each business combines the different elements of the marketing mix in unique ways to maximise their profitability 

Promotion

• Promotion is an important element of the marketing mix as it plays a crucial role in generating customer awareness, interest and desire for a product/service

  • A business can communicate its value proposition to potential customers and differentiate itself from competitors

  • Promotion helps to build brand awareness and loyalty which can lead to repeat purchases and referrals  

• The promotion element of the marketing mix includes a variety of promotional methods such as advertising, direct selling to potential customers, and public relations

Product

• The product design mix refers to the combination of elements that make up a product's design

  • These elements include function, aesthetics, and cost 

• Balancing the elements of function, aesthetics, and cost, helps the product design to be both functional and attractive, while also being cost-effective for both the manufacturer and the consumer

  • Some manufacturers aim to balance all three elements e.g. Fentimans ginger beer is relatively affordable and is packaged in eye catching bottles and the product itself is very good quality

  • Other manufacturers may focus on one aspect, more than the others e.g. Asda's own brand of ginger beer is produced at the lowest possible cost and sold to consumers at a very low price

  • Businesses must take care to balance customers' quality expectations with these elements 

    • The target market may value quality less than price and will not be prepared to pay a high price for goods even if they are of the highest quality

• Developing a strong brand can help to differentiate a product or service from those offered by competitors and can help a business to add value as customers are often willing to pay higher prices for brand they recognize and trust 

Price

• By understanding their customers, competitors, and costs, businesses can set prices that maximise revenue and profitability

• Pricing can play a significant role in positioning the brand in the market and help a firm to compete effectively 

Place

• This refers to the physical location of the business and/or the journey (distribution) through which the product goes from the business to the end customer

• Choosing the most efficient location or distribution network will result in lowered costs and greater profits

The Marketing Mix in a Competitive Environment

• The marketing mix may change in a competitive environment, with businesses adapting their product, price, promotion, or place to differentiate themselves from competitors and attract customers

  • The specific elements that businesses change may depend on the industry, the competition, and the needs of their target market

Examples of how the Marketing Mix may Change in Different Competitive Environments

• The competitive grocery market in the UK has seen the rise of smaller convenience stores in local neighbourhoods e.g Sainsbury Local and Tesco Express

  • The location of these stores is often the main factor in the marketing mix that attracts local customers

  • Convenience adds value and customers are often willing to pay more for much needed items (e.g. milk) which do not require a main supermarket shopping trip

• Many service based businesses such as Save My Exams or recruitment companies like The International Educator have set up as remote based company with their employees working from home

  • This reduces business costs and gives a competitive advantage over competitors who continue to incur office expenses

  • Facilities can be hired for company get togethers or essential business meetings

Changing the Marketing Mix in Response to Changing Consumer Needs

• The marketing mix should constantly be evolving as businesses respond to changing market conditions and feedback from their customers

  • E.g. A small bakery might introduce a home delivery service in response to customer requests

• Here are some examples of how changing consumer needs can impact each element of the marketing mix:

1. Price

• Changing consumer needs can also impact the pricing strategy of a business

  • E.g.During a recession, consumers may become more price-sensitive and shop around for more affordable options

  • Businesses may reduce prices or offer discounts to remain competitive

2. Product

• Businesses must adapt their products to changing needs

  • E.g.In recent years there has been a growing demand for plant-based foods as more consumers adopt vegan or vegetarian lifestyles

  • This has led to the introduction of new products in the market, such as plant-based meat substitutes, which have been successfully marketed to this growing market segment

3. Promotion

• The way businesses promote their products can also change based on changing consumer needs

  • E.g. in recent years, there has been a significant shift towards digital marketing, as consumers increasingly rely on social media to inform their purchasing decisions

  • This has led to businesses investing more in digital marketing channels such as influencer marketing, to reach their target audience

4. Place

• Changing consumer needs can impact the way businesses distribute their products

  • E.g. The rise of e-commerce has made it easier for consumers to shop online and have products delivered to their doorstep

  • In response, many businesses have invested in their online presence offering convenience and fast delivery to cater to the needs of their customers

New Technology & the Marketing Mix

• New technology has revolutionised each element of the marketing mix

  • Changes in e-commerce & digital communication have changed the way businesses create and distribute products

  • Changes in e-commerce & digital communication have changed the way businesses communicate with customers and set prices

• To remain competitive, businesses must continuously embrace the latest technology and adapt their marketing strategies accordingly

 How New Technology Impacts Each Element of the Marketing Mix