Business Studies Marketing Mix Notes

Business Studies Angela Emma Rudd BMA




Marketing Mix ­ The Price

The price of a product or service is important in whether people buy it or not. However the
relative importance of price is likely to vary according to the product and particular
circumstances. When considering the price it is…

Business Studies Angela Emma Rudd BMA




The Rest of the Mix
The price a firm charges depends on the other elements of the marketing mix. For example if
the product is heavily branded the firm may be able to charge a higher price.

Pricing Strategies for Product Launch
When a…

Business Studies Angela Emma Rudd BMA




provided they can separate out the different markets (they have to prevent people
buying at the lower price and then reselling at the higher one).

Pricing Tactics
Pricing tactics are shortterm policies aimed at achieving a particular objective. These include:
Loss leaders ­ A…

Business Studies Angela Emma Rudd BMA




In a Zero Level Channel, the good or a service passes directly from the producers
to the consumer without and intermediaries. E.g. Dentists, Accountants and
Plumbers.



A One Level Channel has one intermediary. For example a retailer buys the
product from the manufacturer and…

Business Studies Angela Emma Rudd BMA




The effective distribution of a product is essential to its success. After all, consumers cannot
buy a product or service if they cannot get hold of it. Companies such as Amazon.com and
Direct Line have turned the distribution of their services into a major…

Business Studies Angela Emma Rudd BMA




promotion has its own advantages and disadvantages, as shown in the table below. For
example, personal selling is obviously quite labour intensive and, therefore, expensive but the
firm gets immediate feedback from its customers.


















Method of Promotion Advantages Disadvantages

Advertising Wide coverage Can be…

Business Studies Angela Emma Rudd BMA




established, promotion might focus more on how products differ from the competition.
Thus, firms selling ISA's will promote the advantage of purchasing their particular
product.
The nature of the product ­ Consumer durable products, such as televisions and
washing machines, are likely to be…