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The Integrated Marketing Mix (OCR GCSE Business)

Revision Note

Lisa Eades

Written by: Lisa Eades

Reviewed by: Steve Vorster

How the 4 P's Work Together

  • 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 Product

Changes to 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 Promotion

Changes to 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 luxury retailers to sell its goods, 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 Marketing Mix in Different Businesses

The marketing mix for start-ups

  • In new business start-ups, the marketing mix is primarily used to create awareness, inform and persuade customers to try out a product with which they are unfamiliar

    • The product element focuses on ensuring goods or services possess unique features and benefits that differentiate them from rivals

    • Price is likely to be determined by existing competitors, or focused on attracting customers with eye-catching price offers

    • Place will likely focus on persuading stockists, such as retailers or wholesalers, to sell the product, or attempting to sell directly to customers

    • Promotion will likely focus on low-cost, often digital, marketing media

The marketing mix for established businesses

  • In more established businesses, the marketing mix is primarily used to persuade, reassure and remind customers of a product's benefits

    • Product is likely to be more focused on developing new or improved products or extending the life of existing products, with investment in innovation, research and development

    • Price will continue to be influenced by existing competitors. Successful products may be sold at a premium. while product extensions may require promotional pricing strategies

    • Place will likely focus on finding new distribution channels, or investing in improved logistics to increase the volume of customers reached

    • Promotion activity may use more media, with an emphasis on promotion strategies that encourage customers to return, such as loyalty cards or reassuring advertising

Other factors

  • The marketing mix is also likely to differ depending on:

    • Whether a product is sold to consumers (B2C markets) or to other businesses (B2B Markets)

    • Whether a product is essential (need) or a luxury (want)

    • Whether there is significant competition in the market

Using the Marketing Mix to Make Decisions

  • The marketing mix is an important element in business decision-making

  • It is used alongside market research to make key decisions that are critical to the success of products

Decisions and the Marketing Mix

Product

Price

  • Businesses use the product element to make decisions about the features, design, branding and packaging of their products

  • It can support decisions about introducing new products, updating existing ones and discontinuing underperforming products

  • The price element helps businesses determine suitable pricing strategies for their particular products

  • Businesses also consider factors like customer perceptions, rivals' prices and market conditions when making price decisions.

Place

Promotion

  • The place element helps with decisions about how to make products or services available to customers

  • Businesses decide on the most appropriate distribution channels, as well as factors like location and logistics to ensure efficient delivery to customers

  • The promotion element helps with decisions about advertising campaigns, sales promotions and other promotional activities

  • Businesses choose the most effective promotional mix based on their target audience, budget, and marketing objectives

Examiner Tips and Tricks

You could be asked to recommend changes to a business's marketing mix. When doing so, take care to consider the impact on other elements of the marketing mix, as they are interrelated and should support each other. Failure to do so could confuse customers!

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    Author
    Reviewer
    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.