The Marketing Mix: Product (Edexcel IGCSE Business)
Revision Note
Written by: Lisa Eades
Reviewed by: Steve Vorster
An Introduction to the Marketing Mix
The marketing mix provides a framework for businesses to create and implement successful marketing strategies
Sometimes known as the 'Four P's', it represents the key elements of a marketing strategy: product, price, place, and promotion
These four components work together to satisfy the needs and wants of a target market while achieving the company's objectives
By understanding and manipulating the marketing mix, businesses can differentiate themselves from competitors, maximise marketing impact and achieve long-term success
Diagram: The Four P's of the Marketing Mix
Businesses combine the 4 P's of the marketing mix in appropriate and unique ways to maximise their chances of success
Goods & Services
Goods are tangible objects that can be handled, used and stored
Consumer goods are used by an end consumer
Durable goods can be used over and over again without wearing out, such as mobile phones, vehicles and beds
Non-durable goods are consumed soon after they are purchased, such as chocolate bars, deodorant and milk
Producer goods are used by businesses to produce other goods, such as tools and office equipment
Services are intangible actions that cannot be touched, seen or stored
Personal services are provided for individuals, such as tutoring, hairdressing or travel insurance
Commercial services are provided to businesses, such as commercial cleaning or specialist recruitment services
In some cases, goods are sold with accompanying services
E.g. Electrical goods such as televisions or computers are sold with product guarantees, or customers can purchase additional insurance
Developing a new Product
One way to stay ahead of the competition is by developing new products and innovating existing ones
The process of new product development involves a number of important stages
Diagram: The Process of new Product Development
New product development is a lengthy process that typically involves generating ideas, developing prototypes and test launches prior to the full launch
Generate ideas
New product concepts are discussed and brainstormed using customer suggestions, ideas from competitors’ products, employees’ ideas and information collected through market and technical research
Select the best idea
Ideas are weighed up with some dropped and others chosen for further research
This decision relates closely to costs and likely demand
Research includes looking into forecast sales, size of market share, and cost-benefit analysis for each product idea
Develop a prototype
This allows the operations department to see how the product can be manufactured, any problems or difficulties arising from its production and how to fix them
Computer simulations are often used to produce 3D prototypes on screen
Test launch
The developed product is sold to on a small scale to a limited market to see how well it sells before its full launch
Changes may be needed prior to an expensive, large scale launch
Digital products like apps and software run beta versions, which is a method of test-launching
Full launch of the product
The finalised version of the product is launched to the entire target market
Costs and Benefits of New Product Development
Costs | Benefits |
---|---|
|
|
|
|
|
|
|
|
|
|
Examiner Tips and Tricks
In the exam you may be asked to explain why a business might consider introducing new products. Explanation questions do not require you to use the business context in your answer. Give a reason and then make two points of development for that reason.
The Importance of Packaging
Packaging is the physical container or wrapping for a product. It is also used for promotion and selling appeal
Packaging is normally designed to
Present products in the most practical yet attractive way
Communicate the quality of the product
Catch the customer's eye when they shop
Provide key information to customers
Establish the business brand image
Protect a product from damage
To stand out from the competition and establish a long-lasting relationship with consumers, brands are investing more money than ever before in creative and environmentally friendly packaging designs
This is becoming increasingly important for businesses as they place a greater emphasis on sustainability and their CSR policies
Examples of Memorable Packaging
Apple iPhone | Ferrero Rocher |
|
|
Tiffany | Pringles |
|
|
Last updated:
You've read 0 of your 5 free revision notes this week
Sign up now. It’s free!
Did this page help you?