Download The Marketing Mix Part 1

The Marketing Mix
Part 1: Product, price and place
Marketing and Sales
1 of 10
© Boardworks Ltd 2010
Learning objectives
Learn what the marketing mix is.
Be able to understand the different types of promotion
and how they are used.
Understand how research and development leads to
the accumulation of knowledge about customers, and
ultimately to the creation of new products.
Icons key:
2 of 10
For more detailed instructions, see the Getting Started presentation
Flash activity. These
activities are not editable
Accompanying worksheet
Sound
Teacher’s notes included
in the Notes Page
Extension activities
Video
Web addresses
Printable activity
PLTS
© Boardworks Ltd 2010
The marketing mix
The marketing mix is a set of decisions that a business has
to make in order to successfully market a product. They must
take into account how these decisions meet the needs of their
customers. To do this, they analyse their market research.
A successful marketing mix will boost sales, create a brand
identity and establish customer loyalty to the brand.
The components that make up
the marketing mix are the 4 Ps:
Product
Place
Price
Promotion.
3 of 10
© Boardworks Ltd 2010
The 4 Ps
What happens if the wrong marketing mix is chosen?
4 of 10
© Boardworks Ltd 2010
Research and Development (R&D)
Unless a business is continually expanding and developing
its range of products, it cannot succeed.
If the marketing mix for
a new product is
correct, sales should
gradually increase.
Product life cycle
However, after time,
sales will begin to level
and then decline.
This sequence of introduction, growth, maturity
and decline is known as the product life cycle.
Can you describe it and give examples?
5 of 10
© Boardworks Ltd 2010
Tesco
Purchases inside Tesco stores and on their website are
processed electronically. The data from each purchase is
stored in a database. The functional areas access that
information and use it to perform their tasks and assess
whether or not they are meeting their objectives.
The Marketing department, for
example, builds up customer profiles.
This helps them target the right market
segments. Tesco’s loyalty card,
‘Clubcard’, has enabled it to construct
the UK’s largest database.
How could Tesco’s other functional areas use
the data from EPOS to perform their tasks?
6 of 10
© Boardworks Ltd 2010
Product
The marketing mix is made up from the key ingredients
required to make a good or service successful. Known as the
4 Ps, they are product, price, promotion and place.
Product: This refers to the good
or service that a firm sells and its
features, such as design,
functions, colour, size etc.
Making products stand out from
rivals’ products helps firms compete
– this is product differentiation.
A good product is at the heart of a successful marketing mix
– without it, sales will eventually fall.
7 of 10
© Boardworks Ltd 2010
Price, place and promotion
Price: This needs to reflect the image of the product –
whether it is a luxury or a budget product – but also offer the
customer value for money.
Place: This involves getting
the product to the right
customers when they need
it via the correct
distribution channels.
Promotion: Its role is to inform customers about the product
and its features in a way that persuades them to buy it.
Promotional techniques include advertising, sales promotions,
public relations and merchandising.
What is meant by an ‘integrated marketing mix’?
8 of 10
© Boardworks Ltd 2010
Pricing strategies
9 of 10
© Boardworks Ltd 2010
Place and distribution channels
A business needs to make decisions about where its products
will be sold and how they will get to consumers.
Many manufacturers sell goods to
customers via wholesalers and/or retailers.
This can increase market coverage, but
long distribution channels increase the
price paid by the end consumer.
Some service providers, such as restaurants and hairdressers,
need direct contact with customers, making the choice of
location important. However, the Internet has made location
less important for some businesses.
First Direct was the first UK bank to sell to
customers by phone. How might this have
benefitted customers?
10 of 10
© Boardworks Ltd 2010