Marketing Mix, Planning &
Objectives
GCSE Business Studies
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Revision Presentations 2004
Marketing Mix - Introduction
Marketing
Mix
Product
Price
Place
Promotion
Often referred to as the “Four P’s of Marketing
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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
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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
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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
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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
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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
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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?
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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
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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
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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
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Implement a public relations programme
Invest more in advertising
GCSE Business Studies