1. Marketing Mix, Planning & Objectives
GCSE Business Studies
tutor2u™
Revision Presentations 2004

2. Marketing Mix - Introduction
Product
Price
Place
Promotion
Often referred to as the “Four P’s of Marketing

3. Product
Can be both
A tangible good (e.g. iPod media player)
A service (e.g. cinema)
Product is something that satisfies customer needs and wants
Many products try to develop an associated brand – a name, design, sign or symbol that helps it to be differentiated from competitor products
Products rarely last for ever – they have a “life cycle”
Businesses need to think carefully about new product development if they are to remain competitive

4. Price
Price – the value a customer is prepared to pay in exchange for taking ownership of a product, or receiving a service
Price directly affects revenue
Revenue = number of units sold x price
But how much a customer buys (“demand”) is also affected by price
So an increase in price doesn’t always mean an increase in revenue
Various methods of setting a price
Pricing strategy is important
Products need to be “competitive”
Price needs to be consistent with the overall objectives of the business

5. Place Not really a “P” – since Place is all about distribution
Channels of distribution – the method by which goods or services are transferred from producers to consumers
In most markets there are several distribution channels
E.g. wholesalers, agents, retailers
Business may use one or more channels
Direct selling (i.e. from producer direct to consumer) is an increasingly popular method of distribution
E-commerce (selling via the Internet) is another kind of distribution channel

6. Promotion
Covers all the different ways a business can communicate with its customers; e.g.
Personal selling
Direct marketing
Advertising
Sales promotion
Public relations
Sponsorship

7. Marketing Planning
Marketing planning – all about deciding what the marketing objectives are – and coming up with a way of achieving them!
Main steps
Do an annual audit to establish “where we are” by gathering data through market research etc
Set SMART marketing objectives
Create and evaluate alternative strategies to deliver objectives
Implement strategy by changing the marketing mix i.e. day to day tactics
Evaluate the success of marketing activities in meeting set objectives before the next annual audit

8. Marketing Audit
A marketing plan is usually prepared following a review of the current situation (sometimes called a “marketing audit”) that looks at questions such as:
What are our existing products and brands?
Are the markets we do business in growing?
If so, how fast?
Who are our competitors?
What advantages (if any) do we have over them?
How effective has our marketing been in recent history?
Are there ways in which we could achieve the marketing objectives differently and more profitably?

9. What are Marketing Objectives?
Marketing objectives are the expected outcomes a business is trying to attain through its marketing activities at the end of a given time period
Ideally - marketing objectives must be SMART (see next slide)
Marketing objectives need to be in line with the other objectives for the business
Marketing objectives can be used as a way of measuring performance over time

10. SMART Marketing Objectives
Ideally, marketing objectives need to be SMART
S = Specific: i.e. state what the firm is seeking to achieve e.g. increase sales
M = Measurable i.e. set in terms of a number value e.g. achieve sales of £1m or increase market share to 15% etc
A = Achievable i.e. the target can be met within the resources of the firm
R = Realistic the target must be achievable in terms of financial and human resources available.
T = Time bound i.e. within a given period of time e.g. 12 months

11. Marketing Strategies Business Strategy Example Marketing Strategies
Grow sales
Launch new products
Expand distribution (e.g. open more shops)
Start selling products into overseas markets
Increase
profits
Increase selling prices
Reduce the amount spent on television
advertising
Build customer
awareness
Implement a public relations programme
Invest more in advertising