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  1. 1-1-the-nature-and-purpose-of-business
    3 主题
  2. 1-2-forms-of-business
    5 主题
  3. 1-3-the-external-environment
    5 主题
  4. 2-1-management-and-leadership
    3 主题
  5. 2-2-management-decision-making
    4 主题
  6. 2-3-the-role-and-importance-of-stakeholders
    3 主题
  7. 3-1-marketing-objectives
    1 主题
  8. 3-2-understanding-markets-and-customers
    5 主题
  9. 3-3-making-marketing-decisions
    2 主题
  10. 3-4-the-marketing-mix
    7 主题
  11. 4-1-operational-objectives
    2 主题
  12. 4-2-operational-performance
    1 主题
  13. 4-3-efficiency-and-productivity
    3 主题
  14. 4-4-quality
    1 主题
  15. 4-5-inventory-and-supply-chain-management
    3 主题
  16. 5-1-financial-objectives
    2 主题
  17. 5-2-financial-performance
    6 主题
  18. 5-3-sources-of-finance
    3 主题
  19. 5-4-cash-flow-and-profit
    1 主题
  20. 6-1-human-resource-objectives
    1 主题
  21. 6-2-human-resource-performance
    1 主题
  22. 6-3-organisational-design
    3 主题
  23. 6-4-human-resource-planning
    4 主题
  24. 6-5-motivation
    4 主题
  25. 6-6-improving-employer-employee-relations
    2 主题
  26. 7-1-mission-objectives-and-strategy
    4 主题
  27. 7-2-assessing-the-internal-position-of-a-business
    10 主题
  28. 7-3-changes-in-the-external-environment
    7 主题
  29. 7-4-the-competitive-environment
    1 主题
  30. 7-5-investment-appraisal
    2 主题
  31. 8-1-strategic-direction
    1 主题
  32. 8-2-strategic-positioning
    2 主题
  33. 9-1-changes-in-scale
    4 主题
  34. 9-2-innovation
    2 主题
  35. 9-3-globalisation-and-internationalisation
    4 主题
  36. 9-4-digital-technology
    1 主题
  37. 10-1-managing-change
    3 主题
  38. 10-2-organisational-culture
    2 主题
  39. 10-3-implementing-strategy
    2 主题
  40. 10-4-strategic-failure
    2 主题
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Introduction to the 7 P’s

  • The marketing mix refers to the seven elements that contribute to the successful marketing of a product

The seven P’s of the marketing mix

A diagram showing the 7 P's of marketing in bold text, surrounded by icons representing place, physical environment, product, process, people, promotion and pricing.
The 7 P’s are product, price, place, promotion, people, process and physical environment

Elements of the marketing mix

Element

Explanation

Product

  • This involves identifying the features, design, quality, branding and packaging of the product/service available for sale and ensuring that they meet the needs and expectations of customers

    • E.g. HSBC offers different current accounts to meet a variety of customer needs, with each account having different features

    • The Premier Account, aimed at higher-income individuals, includes free worldwide travel insurance

Price

  • This involves identifying the best pricing strategies to use after having considered the amount of money customers are willing to pay, as well as factors such as production costs, competition, demand and perceived value

    • E.g. Netflix has recently changed its pricing structure to reflect the different needs of customers and achieve further growth

    • The cheaper standard service includes adverts

    • Customers pay three times more for the premium service but enjoy advert-free, ultra-HD programming

Place

  • This refers to the distribution channels and physical location used to make the product/service available to customers

  • It involves decisions related to the selection of sales outlets, logistics and supply chain management 

    • E.g. Jimmy Choo designer shoes are sold through exclusive retailers and in its small network of stores

    • Clarks sells its range of mid-priced footwear in its stores and online, as well as through partner retailers such as Next

Promotion

  • This relates to the activities used to communicate and promote the product to the target market

  • It includes advertising, public relations, sales promotions, branding, social media and personal selling

  • Promotional strategies make existing and potential customers aware of products, build brand image and encourage loyalty

    • E.g. Southwestern Airlines uses humorous advertising and public relations by sponsorship of several US baseball teams

People

  • This refers to the human resources involved in customer interactions and service delivery to provide a positive customer experience

    • E.g. Lush regularly trains staff on the benefits of its bath and body products so that they can effectively advise customers

Process

  • This refers to operational processes and workflows that enable the smooth and efficient delivery of products and aftercare

  • It ensures the customer experience is consistent, streamlined and meets or exceeds customer expectations

    • E.g. travel companies such as Jet2 provide resort-based representatives that ensure a smooth vacation experience

Physical evidence

  • This refers to the tangible elements that customers perceive when interacting with a product, such as the store or website environment, packaging and branding

    • E.g. large fast food retailers such as McDonald’s create almost identical outlets around the world, with recognisable logos, matching furniture and decor in each restaurant

Influences on the marketing mix

  • Before deciding on the right product features, pricing tactics, distribution channels and promotional tools, marketers consider a range of important influences

Influence

Explanation

Examples

Positioning of the product

  • The image the firm wants consumers to hold

  • A premium or value position determines every element of the marketing mix, from design details to advertising style

  • Bang & Olufsen headphones adopt high prices, selective distribution through specialist stores and elegant promotion

  • Xiaomi Redmi smartphones keep costs low, sell mainly through online channels and rely on short‑term online discounts

Type of product

  • Consumer good or industrial good

  • Household customers often buy due to emotion and convenience

  • Business customers prioritise performance, reliability and ongoing support

  • Lush bath bombs use distinctive packaging, lively social‑media campaigns and accessible high‑street outlets

  • John Deere tractors depend on personal selling, a dealer network and detailed after‑sales service; prices are typically negotiated rather than published

Business resources

  • Available finance, expertise and capacity

  • The firm’s resources limit how sophisticated the product can be and how widely it can be promoted

  • Well‑funded Amazon launches Echo devices globally with extensive advertising and next‑day delivery

  • With limited financial resources, Monzo expanded its digital bank through app‑only distribution and customer referrals rather than expensive advertising

Competition in the market

  • Number and strength of rivals

  • Intense competition may require aggressive pricing and continuous promotional activity

  • Limited competition can allow higher prices and more selective promotion

  • Facing many streaming rivals, Netflix invests heavily in original content and offers multi‑tier subscriptions to hold its market share 

  • In a niche market, Brompton folding bicycles sell at premium prices and are sold to cycling enthusiasts in specialist retailers

Changes in the external environment

  • Political, economic, social and technological shifts can force rapid changes to the marketing mix

  • Growth in remote working led technology firm Logitech to focus on webcams and headsets in both its product range and promotional messages

  • Wider adoption of voice assistants allowed Domino’s to introduce voice ordering, adding a new place channel

The effects of business changes on the marketing mix

Change

How it affects the marketing mix

Example

Financial position

  • Product: R&D budget depends on available finance

  • Price: short‑term discounts can raise cash

  • Place: expansion could be paused if funds are low

  • Promotion: advertising spend may be cut or increased

  • After reporting heavy losses in 2023, Marks & Spencer reduced its TV advertising and refocused on in‑store promotions to improve its cash flow

Business objectives

  • Product: a business may shift from niche to mass market products to increase market share 

  • Price: profit maximisation requires different pricing from volume maximisation

  • Place/Promotion: channels chosen to hit growth targets

  • When Spotify chose rapid user growth over profit as its objective, it discounted premium plans and offered three‑month free trials

Resources (staffing)

  • Product: new talent enables a business to add product features

  • Promotion: an in‑house advertising team may replace agencies

  • Price/Place: statistics specialists can refine pricing and improve e-commerce tactics

  • ASOS hired a dedicated TikTok content team; social videos became central to promotion while spending less on glossy magazine ads

Operations capabilities

  • Product: quality or variety improves with new machinery

  • Price: economies of scale lower unit costs, allowing for lower selling prices

  • Place: improved stock availability

  • Promotion: reliability claims can be included in advertising

  • Ford’s switch to modular EV platforms cut assembly costs, allowing competitive pricing and a product-focused advertising message