• Created by: nuhaazhar
  • Created on: 20-09-16 13:06

Marketing Mix - the 4Ps

Marketing mix - Refers to the combination of factors which help a business sell its products.
The 4Ps - 

  • Product: applies to the product itself, its design and quality, comparing with competitors' products.
  • Price: the price at which the product is sold, comparing with competitors' products' price, should cover costs 
  • Place: questioning method of distribution channel
  • Promotion: how the product is advertised and promoted, questioning methods of promotion that would be effective/suitable for the product 

What makes a product successful? 

  • satisfies existing needs and wants of consumers
  • not too expensive to produce 
  • design - performance reliability, quality must be consistent with product's brand image
  • capable of stimulating new wants from the customer
  • has something distinctive to make it look different 
  • produce a new product or introduce new changes to original product before its competitors 
1 of 11

Market Segmentation

Market segment: A group of customers with similar needs and wants 
Types of segmentation:  

  • Demographic: definining a market by age, gender and family size 
  • Socio-economic: defining a market by income and occupation 
  • Lifestyle: defining a market where customers are located 
  • defining a market by values, opinions, hobbies, interests, personality characteristics
  • Geographic: defining a market where customers are located 

Why do businesses segment the market? 

  • To make sure they meet the needs&wants of customers more effectively 
  • To help them decide how to market their product/service
  • Get more customers = make more profits 

Problems with market segmentation: 

  • Product may appeal to other customers (people that are not targeted may want to use) 
  • Business could pick the wrong target market (if not enough research) 
2 of 11

The importance of Market Research

  • Businesses use market research to help them decide the right mix 

Market research: process of gathering, analysing and interpreting information about a market 
Product-oriented: business focus mainly on the product itself; produce product first then find market
Market-oriented: business carries out market research first to find out what consumers want before a product is developed and produced 

Why is market research needed?

Types of information 

  • Quantitative: numbers and statistics; able to retrieve by close-ended questions 
  • Qualitative: produces information in the form of descriptions 
3 of 11

Primary Research

+s/-s of questionnaires: 

  • + detailed qualitative information
  • + can be carried online; cheaper and easier to collate/present 
  • - time and money consuming (collating/analysing) 
  • - answers to questions might not be very accurate -> misleading to business 

+s/-s of interviews: 

  • + interviewer able to explain the questions to interviewee 
  • + detailed responses from interviewee 
  • - interviewer could lead the interviewee -> inaccurate results due to bias 
  • - time-consuming; often also expensive way 

Sample: a group of people who are selected to respond to a market research 
Random sample: when people are selected at random for source of information 
Quota sample: when people are selected on the basis of certain characteristics as a source 
Focus group: 
a group of people who are representative of the target market 

4 of 11

Secondary Research

Internal sources of information: 

  • Sales repartment sales record, pricing data, customer records, sales reports
  • Opinions of distribution and public relations 
  • Finance department 
  • Customer Service department

External sources of information: 

  • Government statistics
  • Newspapers
  • Market research agencies 
  • The internet 
5 of 11

Product Packaging

Packaging: is the physical container or wrapping for a product. Often used to appeal to consumers. 

  • New packaging can extend the product lifecycle 

Purposes of packaging: 

  • protects the product
  • easy to transport 
  • present an appealing image
  • easy to open and use the product 
  • provide product information inc. barcodes 
  • promotes brand image 
6 of 11

Product Life Cycle

Product life cycle: describes the stages a product will pass through from its introduction, through its growth until it is mature and then finally its decline 
Development: product is tested and developed before it is launched; market research is carried; there will be no sales 
Introduction: initial sales are low until customers start buying; production costs = higher than revenue from sales 
Growth: sales increase = production becomes more profitable; early development costs can be recovered; success of product -> brand loyalty and repeat sales 
Maturity: product reaches peak of sale; most profitable point for the company; competitors enter market
Saturation: product/service becomes less popular (satured); decline in sales; more competitors enter market . **** 
Decline: sales have fallen; new design for product has been introduced; revenue has fallen; product may be removed
****Extension strategies: extend life of product before it goes into decline; businesses use marketing techniques to improve sales eg use a new advertising campaign or make small changes to the product's design, colour or packaging 

Don't Imagine Good Maggi So Daringly 

7 of 11

Pricing Methods

Cost-plus pricing: the cost of manufacturing the product plus the profit mark up; + easy to calculate; + all costs are covered; + costs increase = price increase; - competition may not increase prices when you do; less incentive to control costs
Example: cost = RM50; percentage mark up = 50; selling price = 1.5 x 50 = RM75 
Competetive pricing: when product is priced in line with or just below competitors' prices; happens when there is a lot of choice
Psychological pricing: involves setting a price just below a large number to make it seem cheaper; charging a very high price for a high quality product; little sales revenue is lost 
Penetration pricing: when the price is set lower than the competitors' prices in order to be able to enter a new market; ensures that sales are made for new product entering the market; profit per unit sold may be low
Price skimming: high price is set for a new product on the market; people will pay because of the novelty factor; can help to establish the product as being good quality; may put off potential customers
Promotional pricing: setting a very low price for a short period of time; boost sales throughout; useful for getting rid of unwanted stock; renew customers' interest; lower sales revenue 
Price discrimination: firms charge different prices to different consumers for same product; lead to increased revenue and profits but can also add costs (prices constantly changing) 

8 of 11

Price Elasticity

Price elasticity: a measure of the responsiveness of demand to a change in price. 
Law of demand: as price increases, demand decreases 
Price elastic (very responsive): small percentage change in price = large percentage change in demand. Eg Pepsi vs Coke 
Price inelastic: (unresponsive): large percentage change in price = smaller percentage change in demand. Eg Nexus uniform (even if price increases, new students will have to buy no matter what) 

  • Substitutes: no substitutes = inelastic 
  • Proportion of income: takes up small proportion of someone's income = inelastic 
  • Luxury of necessity: essential for living and is needed eg petrol = inelastic
  • Addictive: product is addictive = inelastic 
  • Time to respond: no time to search for cheapest price = inelastic 
9 of 11

Aims of Promotion

Promotion: the way in which a business communicates with existing and potential customers to encourage demand 
Promotion as part of the marketing mix includes: 

  • Advertisements
  • Sales promotion 


  • To increase sales
  • To create brand image
  • To introduce new products to the market
  • To improve the company image
  • To inform people about particular issues, often used by government
  • To compete with competitors' products 
10 of 11

Types of Distribution Channels

Distribution channel: the means by which a product is passed from the manufacturer to the customer - this can often involve an intermediary (aka middle men) 
Direct channel: no intermediaries; increasingly popular method; + simple; + no intermediary = cheaper to customer; - not suitable for large products; - expensive to send by post so not cost effective 
Retailers: more popular when retailer is large or when products are expensive; they deal directly with the customer; + producers sell large quantities to retailers; + reduced distribution costs (bc you're sending large quantities in one go) = more cost effective; - price increases for customer; - producers lose control over how product is sold 
Wholesalers: breaking bulk; benefit from economies of scale (the more they buy the cheaper each unit becomes); simplifies process for retailers; + small retailers are able to purchase smaller quantities; + wholesaler saves storage space; - fresh products might not be of good quality as it takes longer for them to reach shops; - producers lose control
Agent: have specialist knowledge of that country, so they sell on behalf of the business; they can also be the only intermediary; do not hold stock; operate in tertiary sector; + offer specialist knowledge; know about local conditions; - producers lose control; - consumers pay more 

11 of 11






I'm really interested in learning more about Marketing as I wanted to pursue my career in this field. I recently came up with Mcdonald's Menu Pakistan, and I really like their marketing techniques. Their core subject is clients' needs and their desires and they are portraying their products according to that. 



Location-based marketing is a marketing strategy that focuses on leveraging the geographical location of a company or organization to promote its products or services. The goal of location-based marketing is to attract customers and encourage them to visit the actual location of the company to make purchases or take advantage of the offered services.

The strategy of location-based marketing relies on targeting customers who are geographically close to the company's location. This can be achieved through local advertising and targeted promotional offers for the surrounding area. Online location-based marketing techniques can also be used to attract local customers, such as local advertising on social media platforms and optimizing local search engines.

Location-based marketing aims to capitalize on the advantages of physical location, connecting with customers in a personalized and localized way. By tailoring marketing efforts to the specific needs and preferences of the local customer base, companies can increase customer engagement and drive sales. This strategy is particularly effective for businesses with brick-and-mortar stores or physical service locations, as it encourages customers to visit and experience the offerings firsthand.

In summary, location-based marketing is a powerful marketing strategy that utilizes the geographical location of a company to achieve marketing objectives and increase brand awareness within the local community.

Similar Business Studies resources:

See all Business Studies resources »See all Marketing resources »