1. 1.4.2 The marketing mix Marketing is all around us!
What is your favourite confectionery product?
Who makes it?
Why do you choose it?
When you get your hair cut how do you choose where?
convenience
brand / quality of hair cut
price
promotions or advertisements
How does your school or college market itself to prospective students?
1.4.2 The marketing mix
1.4.2 The Marketing Mix

2. The Marketing mix What is the marketing mix?
The effective combination of the four key elements of marketing, known as the four Ps
Product
Price
Promotion
Place
Think of these as the four key ingredients in a recipe.
Each one has to be blended together to achieve marketing success.
1.4.2 The Marketing Mix

3. Elements of the marketing mix Product
The goods and services that the firm provides.
Goods are physical or tangible products. You can touch them – a car or a television.
Services are unphysical or intangible. They cannot be touched – financial consultancy or teaching.
Products can be described by function and feature.
Select an item of clothing or item of stationery you have with you today – What is its function? What are its features?
It is normally the features that differentiate one product from another.
Do you ever use these terms to describe a product?
Hoover, Biro, Tupperware, Coke, Sellotape
Are you using the term correctly?
1.4.2 The Marketing Mix

4. Marketing on a limited budget product
Limited amount of money to spend on marketing activities including product development
Research and development is expensive
May be difficult to source suppliers
How do you make your product stand out from others in the market?
Can you build a brand name?
Will shops stock your product?
Extension:
An added hurdle for inventors
Unique selling point
_ _ _ _ _ _ / _ _ _ _ _ _ _ / _ _ _ _ _
1.4.2 The Marketing Mix

5. Products that a small business is likely to offer
An area of personal expertise
A skill or talent
Low capital investment
Spot a niche in the market
A personal service
Support each one with an example from your local area
Dragons den
Extreme Flyers
BEE Automobiles
Where do entrepreneurs get product ideas from?
What are the challenges in developing a product?
What makes a successful new product?
What are the key constraints on entrepreneurs developing products?
1.4.2 The Marketing Mix

6. Altering the product to meet customer needs
Small firms often need to take actions to try and increase sales and gain customers
One way of achieving this is through altering or tailoring the product to meet the customers needs
This can involve
Additional services
Differentiated products
Tailor made products
Responding to local demographics (characteristics of the population)
Identifying trends
1.4.2 The Marketing Mix

7. Product
Alistair has run a small post office in a village just outside Bradford for 20 years. His store also sells small items of stationery, locally produced greeting cards and pocket money toys. Times have been tough and Alistair is looking for ways of increasing his sales. His son, James has just left college and is struggling to find employment. Alistair suggests they have the post Office refurbished and turn half of it into a computer repair and accessories shop to be run by James.
Question time
What is meant by the term ‘product’?
Are the products offered by Alistair tangible, intangible or both?
Do you think offering a computer repair and accessories shop is an appropriate way for Alistair to alter his product to meet customer needs? Justify your answer
Explain 1 other way that Alistair could alter his product to meet customer needs.
1.4.2 The Marketing Mix

8. Say what you see
PRICE
Low price
1.4.2 The Marketing Mix

9. Elements of the marketing mix Price
How much a firm will charge for the product being sold or service provided.
Firms use different pricing strategies to price their products, taking into account a number of factors such as market research, number of competitors and the state of the economy.
How important is price?
Are you influenced by price when making choices in a shop?
Are there any occasions when you will look for the cheapest price?
Are there any occasions when you will look for an expensive price?
What factors influence how important the price is?
1.4.2 The Marketing Mix

10. How can a USP allow businesses to charge premium prices?
Why might a small firm find it hard to compete on price with larger competitors?
If they cannot compete on price how can they try to compete?
Reggie's crazy shop - The Fall and Rise of Reggie Perrin - BBC comedy
How can a USP allow businesses to charge premium prices?
1.4.2 The Marketing Mix

11. Elements of the marketing mix Promotion
Activities designed to increase 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. We call this the promotional mix.
Game - Developing a promotional mix £10.00
Group activity
Draw a spider diagram to show as many possible promotional activities as you can think of.
Underline all of those that you think are suitable for a small business on a limited budget.
1.4.2 The Marketing Mix

12. Promotion methods suitable for a small business
The following methods are suitable for a small business:
Advertising in local newspapers
The Internet
Personal Recommendation
Business Cards
Work in pairs to complete the table below:
Technique
Advantages
Disadvantages
Local newspaper
The internet
Personal recommendation
Business cards
1.4.2 The Marketing Mix

13. Elements of the marketing mix
Alistair and James have agreed to go ahead and try their new venture of splitting the post office between its established products and services and the new computer repairs and accessories shop. James has carried out some research into the process charged by large out of town retailers such as PC World and is concerned that if he sets prices to match these he will not make any money. He also knows he will need to promote this new side of the business and has asked his Dad for a promotion budget.
Question time
Why is James unable to set prices as low as his competitors?
Explain 1 action James could take to justify charging higher prices than his competitors.
What is meant by the term ‘promotional budget’?
Recommend and justify 2 suitable promotional methods for James.
1.4.2 The Marketing Mix

14. Elements of the marketing mix Place
The means by which the product will be distributed.
Where will the customer be able to buy the product?
If I want to buy a pair of Nike trainers what are the options available to me?
Why might I choose one option over another?
If I want to customize my own trainers what are my options?
Manufacturer
Wholesaler
Bulk
Quantities
General public
Retailer
When shopping for products I have a choice. Sometimes I can buy them directly from the _ _ _ _ _ _ _ _ _ _ _ , or I could go to a _ _ _ _ _ _ _ _ _ _ , who buys in _ _ _ _ and breaks it down into smaller _ _ _ _ _ _ _ _ _ _ . However these options may not be available to the _ _ _ _ _ _ _ _ _ _ _ _ _ , like you or me, so we may have to buy from a _ _ _ _ _ _ _ _ _ .
1.4.2 The Marketing Mix

15. Puzzle time Write in 12 terms you have learnt about this topic Write a clue for each one to help other students work out the answers
You can use each letter only once
E L E T R M S C
E S U O U O T E
S L N T N P I C S
A C O R M S A L N
S E R N I W C P E
F H P E E G S C A P
O A W P B L A E E A T R X
I U E R O O D C G T A I D N
L M F R I P U D N E T E R E R
D M C P K R M I S I O M I O
Marketing mix
Product
Place
Price
Promotion
USP
Differentiation
Wholesaler
Ecommerce
Business cards
Local newspaper
1.4.2 The Marketing Mix

16. MULTIPLE CHOICE
1. Which two of the following are the most likely methods a business might use to compete with competitors
Select two answers
□ A Lowering price
□ B Reducing cash outflows
□ C Increasing its range of products
□ D Reducing staff numbers
□ E Increasing national insurance contributions
1. A 2. C
1.4.2 The Marketing Mix 16