Introduction-To-The-Marketing-Mix

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Exam code:J204

The four Ps

The marketing mix (4Ps of marketing) provides a framework for businesses to create and implement successful marketing strategies and methods
The 4Ps represent the key elements of a marketing strategy: product, price, place, and promotion

Circular diagram of marketing mix, detailing four elements: Promotion, Product, Price, and Place. Each element has associated strategies and tools. — **The four P’s of the marketing mix are product, price, place and promotion**

These four components work together to satisfy the needs and wants of customers in a businesses target market while achieving the company’s objectives
- By understanding and manipulating the marketing mix, businesses can differentiate themselves from competitors

An overview of the four P’s

Element	Explanation
Product	This involves identifying the features, design, quality, branding, and packaging of the product/service E.g. HSBC offers different current accounts to meet a variety of customer needs, The Premier Account is a fee-free current account aimed at higher income individuals which includes free worldwide travel insurance and preferential interest rates on mortgages
Price	This involves identifying the best pricing strategies to use after having considered the amount of money customers are willing to pay, production costs, competition and expected demand E.g. Netflix has recently changed its pricing structure to reflect the different needs of customers Standard service customers pay the lowest subscription fee but programmes include adverts Premium customers pay three times as much but enjoy advert-free, ultra-HD shows
Place	This refers to the distribution channels and physical location, as well as logistics and supply chain management Products aimed at the mass market are sold in as many popular outlets as possible Exclusive distribution involves targeting high end customers by limiting the sales outlets E.g. Porsche sports cars are only sold through licensed retailers
Promotion	This relates to the activities used to communicate and increase awareness of the product to the target market, including advertising, public relations and sales promotions E.g. Southwestern Airlines humorous advertising, as well as discounts on tickets and sponsorship of US baseball teams

Examiner Tips and Tricks

When making recommendations for a suitable marketing mix, make sure you recognise the impacts on each of the four elements.

For example, you may recommend an increase in price, but if this is not accompanied by increased demand to a successful advertising campaign, it is less likely to be successful.

Business GCES OCR

Introduction-To-The-Marketing-Mix

The four Ps

An overview of the four P’s

Examiner Tips and Tricks

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