The Marketing Mix Revision Notes - AQA AS Level

A revision note I typed up a while back for a test. 

Hope you find it helpful.

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  • Created by: Hanis94
  • Created on: 21-04-11 15:35
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Marketing Mix
The Marketing Mix covers the way a business use product, price, promotion and place to market and sell
its product. Also known as the 4Ps'.
Definition: The integration of product, place, promotion and pricing designed to achieve the marketing
objectives of the business.
An effective mix....
achieves marketing objectives
meets customers' needs
is balanced and consistent
creates a competitive advantage
matches corporate resources
Price: How much the customer is expected to pay for the product.
Product: Refers to the features and functions of the product or service being offered.
Promotion: Communication with the consumers.
Place: Where the purchase can be made by the consumer.
Product
Product needs to exist for other elements of the mix to happen.
*Key terms:
Product development: The process of improving an existing product line to meet the needs of
the market.
Product line: A set of related goods and services
Product mix: The full range of products offered by a business, also known as product portfolio.
Product development is very important to small and growing businesses because it comes from
identifying the needs of customers who should always be the focus of an organisation. It would be
dangerous for any business to assume that a successful product will still be successful in a year's time.
The product development process:

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Ideas stage: Market researchers look for a gap in the market and figure out how a new product
can best meet customer needs.
Screening stage: The business analyses the idea for the new product to see if its easy to market,
and to see if it'll make profit. It also finds out what consumers think of the potential new product.
Product development stage: The prototype (model) is turned into a saleable product.…read more

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Usually used when a product is at the end of the maturity stage and is at
the beginning of the decline stage.)
Promotion
Definition: Bringing a product or range of products to the attention of existing and potential customers.
Tapping into our subconscious mind.
*Key terms:
Sales promotion: Offers designed to increase sales.
Promotional activities: The ways in which a business can communicate with its potential/existing
customers with the aim of increasing sales.…read more

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Advantages: Orders can be collected and delivered, features and functions of product can be
fully explained, feedback can be gathered directly,
Disadvantages: Expensive to maintain a sales team, some customers dislike "cold callers", there
are legal issues to protect consumers from being intimidated by forceful people.…read more

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Loss leaders: Products sold at less than cost to attract customers to a product range.
Psychological pricing: The use of odd number pricing to increase the value-for-money appeal of a
product.
Price elasticity of demand (PED): The sensitivity of demand to the change in a product's price.
Price inelastic demand: The demand for a product changes relatively less than the change in price.
Price elastic demand: The demand for a product changes relatively more than the change in price.…read more

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Place
This element of the marketing mix is concerned with the distribution of the product to the purchaser.
*Key terms:
Distribution channel: Method by which a product is sold to the customer.
Direct sale: Where no intermediaries are used.
Intermediaries: Organisations involved in the distribution of goods and services on behalf of other
businesses.
Business to business markets: Companies meeting the needs of other businesses in the market place.
Business to consumer markets: Companies meeting the needs of final consumers of goods and services.…read more

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Competitors
Market coverage
Control
The marketing mix
Volume of sales…read more

Comments

davidsalter

This is a comprehensive set of notes covering the whole marketing mix in bullet point form. It can be used as notes or adapted for your own use. Includes the boston matrix and product life cycle.

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