3.4.1 M AKING MARKETING DECISIONS : USING THE MARKETING MIX AQA Business 3 D ECISION MAKING TO IMPROVE MARKETING PERFORMANCE There are 7 elements of the marketing mix known as the 7Ps of marketing. Can you work out what they are? P _ _ _ _ _ _ P _ _ _ _ P _ _ _ _ _ _ _ _ P _ _ _ _ _ P _ _ _ _ _ _ P _ _ _ _ _ _ _ / E _ _ _ _ _ _ _ _ _ _

3.4.1 M AKING MARKETING DECISIONS : USING THE MARKETING MIX  In this topic you will learn about  The elements of the marketing mix (7Ps)  The influences on and effects of changes in the elements of the marketing mix

THE MARKETING MIX  The marketing mix is the combination of elements through which a firm achieves its marketing objectives Marketing Mix – the 7Ps Product Promotion Place People Process Physical evidence Price

THE MARKETING MIX - P RODUCT  Product is the goods and services that the firm provides  Product will be made up of core features and functions as well as additional aspects that can sway consumer behaviour e.g. brand or guarantees  Goods are physical or tangible products e.g. a car or a television  Services are non physical or intangible e.g. financial consultancy or teaching  Businesses will normally have a range of products in their portfolio

THE MARKETING MIX - P ROMOTION  Promotion is the activities designed to communicate with the market thereby increasing visibility and sales of a product  Firms use different promotional strategies to make their products more widely known to other businesses and the general public e.g. branding, advertising, sponsorship Why will businesses use a range of promotional techniques?

THE MARKETING MIX - P RICE  Price is the amount of money that the customer has to pay to receive the good or service  Firms use different pricing strategies to price their products, taking into account a number of factors such as market research, competitors’ prices and the state of the economy Prices can also be changed as part of a promotional campaign.

THE MARKETING MIX - P LACE  Place defines both the physical location where a product is available as well as the distribution channel it has travelled through to get from the manufacturer to the customer  Place can be a physical market where buyers and sellers meet face to face or a virtual location i.e. over the internet  Increasingly firms are adopting a multi-channel approach to place

THE MARKETING MIX – PEOPLE, PROCESS AND PHYSICAL ENVIRONMENT  People are the employees involved in dealing with customers before, during and after a sale  Process is the steps a customer goes through to actually complete a transaction  Physical environment is the design and features of the actual place where a transaction takes place

I NFLUENCES ON THE MARKETING MIX There a number of factors that might influence the marketing mix for a firm:  The market  Industrial markets are where businesses are selling to other businesses (B2B) The technical specification of the product and service provided by as sales person or account manager is likely to be more important than the physical environment  Selling raw materials or components – Examples include steel, coal, gas, timber  Selling services to businesses – Examples include waste disposal, security, accounting & legal services  Consumer markets are where businesses are selling to the public (B2C) The product and the price may be seen as of equal importance to the physical environment but more important than place e.g. does it matter what channels the product went through to reach the consumer

I NFLUENCES ON THE MARKETING MIX  Convenience products are ones where the ease with which a consumer can get the product is a key priority Likely to be everyday items such as bread and potatoes Customers may pay a higher price as a result of the convenience e.g. if buying from a corner shop to save travelling time  Shopping products are ones where the consumer does not rush into the purchase but compares different options weighing up the strengths and weaknesses of each option before reaching a decision Often items that have an element of emotional attachment when buying and sometimes irrational behaviour e.g. gifts or fashion Customers may be influenced more by the product and the physical environment than the price  Speciality products are ones that a customer will spend time thinking about and often researching before buying These are likely to be infrequent purchases where the product is viewed as a luxury or a treat e.g. an expensive item of jewellery or a designer label

3.4.1 M AKING MARKETING DECISIONS : USING THE MARKETING MIX  In this topic you have learnt about  The elements of the marketing mix (7Ps)  The influences on and effects of changes in the elements of the marketing mix

I NFLUENCES ON THE MARKETING MIX The following are companies from 6 different industries: Arsenal (or sport club of your choice) Johnson’s Dry Cleaners Innocent Smoothies Harrods Gregg's ASOS For 3 of the companies make a list of the 7Ps prioritising which is the most important all the way down to which is the least important. Justify your decisions. Produce an A4 poster for one of the companies to show this information.

I NFLUENCES ON THE MARKETING MIX  Market research findings will inform elements of the marketing mix  Target market that the product is aimed at  Positioning relative to competitors  Internal constraints e.g. budgets, expertise and capacity  External influences including the actions of competitors and the state of the economy The marketing mix of a business is dynamic i.e. it changes over time. As the influences change the business will have to respond by changing elements of the mix. What elements of Cadbury’s crème egg marketing mix were changed? What were the factors influencing these changes? Were these changes effective?