Marketing Mix

The 4P's

What is the Marketing Mix?

The marketing mix is used to structure a product in the business for its targeted customers a business must..

  • Sell customers a PRODUCT they want or need
  • Place the product at a reasonable PRICE the customer will pay
  • Sell the product at the right time and PLACE
  • To make customers aware of the product by using PROMOTION

These are known as the 4P's of business.


One of the most important P's is the PLACE.This must be a convenient locations of your targeted customers. These places can include. The suitability of the location will depend on the product or service you are selling. Places may include...

  • Wholesaler
  • Catalogue
  • Industrial Estate
  • Shopping centre
  • Online
  • High street

The place is how a business gets its product to their customer, to distribute their product to at the right place and time in the right quantities. The PLACE is crucial as...

  • Customers don't have a near retailer for this product.
  • A competitor has a wider range of distributing the same product
  • A competitor may have trained sales agents meeting customers and closing sales as they are at the right place.


A consumer has many choices of the same or similar product therefore the business must make their product the first in the consumers mind. A business can do this by:

Specialised product - making the same product adapted for a different audience e.g. diet coke for women, coke zero for men.

Improvments - Advertising the improvement of a product to get more customers e.g. Herbal Essence advertised new formula for shampoo.

Changed Packaging - changing the way the product looks making it seem more current e.g. smarties went from circular to hexagonal tube.

New technology - advertising how you have added to a product making it better e.g. new retina display, mainly used in electronics.

Widen the product range - branch to other markets, e.g. chocolate bars changed to milkshakes and drinks.


Promotion is when a business tells the consumer about their product or service, this can be done in 5 different ways:

  1. Advertising this is done through
  • TV
  • Radio
  • Posters
  • Billboards
  • Newspapers
  • Magazines

2. Sales Promotion

  • special offers i.e. Buy One Get One Free
  • Price discounts i.e. 1/2 off
  • vouchers
  • Free gifts
  • Prize competition

3. Direct Mail also known as junk mail This is when a business sends mail to a targeted consumer such as sending mail to a previous customer.

4. Public Relations (PR) This is when the business shows their relationship with their community this is done by:

  • Press release
  • Organising sponsorships
  • Damage limitation

5. Packaging this is to not only to protect the product but also needed for consumers this is by

  • Having a package with the consumers appeal
  • Having seasonal packages


The price is one of the most important factors in any business. The perfect price for a product or service has to be something the consumer is willing to pay. There are 5 ways a business can price a product or service these are...

  1. Cost-plus - this is adding a % of the product to the actual price for a profit. PRO - Ensures a secure profit CON - The product may not sell
  2. Competition - changing the price of a product similar to the competitors. PRO - A competitive price CON - There may not be a profit
  3. Penetration - Start with a low price to attract customers and then increasing the price for the next product. PRO - Encourages people to try the product CON - It will not last long
  4. Skimming - Start with a high price for a unique product decreasing at different stages of the products life cycle. PRO - Allows extra profits to be made CON - Only works while there is no competition
  5. Promotional - Special price for a limited time. PRO - Can get rid of all stock CON - Only useful for a limited time

These are the 4P's of the Market Mix used in B

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