Download Marketing Mix (BBC Bitesize Revision)

Marketing Mix (BBC Bitesize Revision)
Business Studies
The marketing mix
A company needs to consider the marketing mix in order to meet their consumers' needs
effectively.
Elements of the marketing mix
The marketing mix is the combination of product, price, place and promotion for any
business venture.
Marketing Mix
No one element of the marketing mix is more important than another – each element ideally
supports the others. Firms modify each element in the marketing mix to establish an overall
brand image and unique selling point [Unique selling point: The unique thing about the
product that makes consumers buy it. This can be branding, packaging or a feature of the
product. ] that makes their products stand out from the competition.
Using the marketing mix
The luxurious perfumery at The Galeries Lafayette Department store in Paris only sells
premium brands
An exclusive brand of jewellery uses the best materials but comes at a high price. Such
designer brands can only be bought at exclusive stores and are promoted using personal
selling sales assistants. By contrast, cheap and cheerful jewellery for the mass market is
best sold in supermarkets and can be promoted using television adverts.
Market research findings are important in developing the overall marketing mix for a
given product. By identifying specific customer needs a business can adjust the features,
appearance, price and distribution method for a target market segment.
New technologies and changing fashion means goods and services have a limited product
life cycle. Ideally, the marketing mix is adjusted to take account of each stage. For example,
the life of a product can be extended by changing packaging to freshen a tired brand and
so boost sales.
Market stalls generally sell inexpensive items
There is no single right marketing mix that works for all businesses at all times. The
combination of product, price promotion and place chosen by a business will depend on its
size, competition, the nature of the product and its objectives.
The overall marketing mix is the business’ marketing strategy and is judged a success if
it meets the marketing department’s objectives, eg increase annual sales by 5%.
Consumer protection
Businesses must must never be misleading about their products
The law gives customers protection against unfair selling practices. You do not need to
know specific Acts but you do need to understand how fair trading regulations protect
consumers.
The consumer has basic legal rights if the product is:
• given a misleading description
• of an unsatisfactory quality
• not fit for its intended purpose
Sale and Supply of Goods Act 1994
This Act says that all products have to be of a 'satisfactory quality'. This means that they
have to:
•
•
•
•
be safe
last for a reasonable amount of time
be fit for their intended purpose
have nothing wrong with them (unless the defect was noted at the time of sale)
Trade Descriptions Act
A fake Rolex watch
According to the Trade Descriptions Act, false or misleading information must not be given
about products. For example, accurate information must be given about who made the
product.
Fake designer goods that are marketed as genuine are a clear breach of the Trade
Descriptions Act.
Consumer Credit Act 1974
This Act protects you when you borrow or buy on credit. The Consumer Credit Act states
that:
• Businesses must have licences to give credit.
• No one under 18 is to be invited to borrow or buy on credit.
• Businesses have to state an Annual Percentage Rate (APR). If you sign a credit
agreement at home you have several days in which you can tear up the agreement.
This is called a 'cooling off period'.