The 7 Ps of the Marketing Mix

a) PRODUCT

• The relationship between the product life cycle, product portfolio and the marketing

mix AO2

• Extension strategies AO3

• The relationship between the product life cycle, investment, profit and cash flow AO2

• The following aspects of branding.AO2

-Awareness

-Development

-Loyalty

-Value

• The importance of branding AO2

b) PRICE A03

The appropriateness of the following pricing methods.

• Cost-plus (mark-up) pricing

• Penetration pricing

• Loss leader

• Predatory pricing

• Premium pricing

• Dynamic pricing (HL only)

• Competitive pricing (HL only)

• Contribution pricing (HL only)

• Price elasticity of demand (HL only)

c) PROMOTION 

• The following aspects of promotion. AO2

- Above the line promotion

- Below the line promotion

- Through the line promotion

• Social media marketing as a promotional strategy AO3

d) PLACE AO3

• The importance of different types of distribution channels 

e) PEOPLE AO3

• The importance of employee–customer relationships in marketing a service and cultural variation in these relationships

f) PROCESSES A03

• The importance of delivery processes in marketing a service and changes in these processes

g) PHYSICAL EVIDENCE A03

• The importance of tangible physical evidence in marketing a service 

h) Appropriate marketing mixes A03

• Appropriate marketing mixes for particular products or businesses 

Above the line promotion (ATL)

Form of promotion that refers to any form of paid-for promotional technique through independent consumer media.

Advertising

A form of visual and/or audio marketing communication used to inform and persuade people to buy a certain good or service.

After-sales care

These are value-added services offered to customers subsequent to the sale of a product, e.g., guarantees and warranties, maintenance services, and technical support.

Agents

Also known as brokers, these independent intermediaries help to sell a vendor’s products in return for commission, e.g., real estate agents.

Below the line promotion (BTL)

Form of promotion that refers to all forms of advertising or promotion that do not use external media agents.

Brand

A brand is the registered name used to identify a product of a particular business organization.

Brand awareness

The degree of customer knowledge and recognition of a particular brand in order to gain more customers.

Brand development

Part of a firm’s marketing strategy in communicating the value of a brand and what the brand stands for.

Brand loyalty

The degree of customer devotion to a particular brand.

Brand switching

This is the opposite of brand loyalty and occurs when consumers turn to alternative brands, mainly because the original brand has lost some of its former appeal.

Brand value

The expected earning potential of a brand, i.e., the likely future earning potential (value) of a particular brand.

Branding

This is the practice of using an exclusive name (brand), symbol, or design which identifies a specific product or business.

Competitive pricing

This pricing method involves a business setting the price of its products at the same or similar level charged by competitors in the market.

Consumer goods

These are products bought for personal consumption, rather than for business use, e.g., home appliances, furniture, food and drink, and house plants.

Contribution pricing

A pricing method that involves setting the price of a product at a level higher than the direct costs. Hence, the sale of each product earn the firm a positive contribution towards paying its indirect costs.

Cost-plus pricing (or mark-up pricing)

Adds a profit margin to the costs of production, thereby ensuring that each unit sold contributes towards the profits of the firm.

Customer care

Refers to the attentiveness and courtesy of employees towards meeting the needs of their customers in the delivery of a good or service.

Customer loyalty schemes

These are marketing strategies used to attract customers to remain devoted to a brand or business by offering rewards and other incentives for repeat purchases.

Direct mail

The use of postal correspondence for promotional purposes.

Direct marketing

Refers to a business communicating information about its products straight to customers.

Distribution (place)

The marketing process of getting the right products to the right customers in the right place and at the right time, e.g., wholesalers, retailers, agents, e-commerce, and vending machines.

Distribution channel

Also known as a channel of distribution, this refers to the path taken for a product to get from the producer to the consumer.

Dynamic pricing

This refers to charging customers different prices based on changing demand at different times of the day, week, month, or year.

Extension strategies

Marketing approaches used to prolong or lengthen a product’s life cycle, e.g., price reductions or new promotional strategies.

Genericized brands

These are brand names that become synonymous with the name of the product itself due to their popularity, e.g., AstroTurf, Band-Aid, Frisbee, Sellotape, and Yo-Yo.

Global brands

These are highly recognized brands in overseas markets. Firms use a unified approach to their global brand strategy to increase its brand recognition as well as to support its brand awareness and brand development in new markets.

Impulse buying

Refers to the unplanned or unintentional purchases of customers due to them being attractive by promotional campaigns (sales promotions).

Informative promotion

Describes one of the purposes of promotion in the marketing mix, which is used to notify or tell customers about a firm’s products.

Innovators

The name given to the group of consumers who are the first to own a certain product, usually due to the prestige associated with being first and/or customer loyalty to a particular brand or product.

Intermediary

A third-party person or business that offers distribution services as part of a channel of distribution, such as agents, wholesalers, and retailers.

Intermediation

The marketing process of using a middle person or distributor as channels of distribution between the producer and consumers.

Logo

A form of branding that uses a visual symbol to represent a business, brand, or product.

Loss leader pricing

Pricing a product below its cost of production so as to attract customers to also buy other items (with a higher profit margin).

Mail order

A form of distribution channel that enables customers to receive their goods via postal services.

Marketing myopia

This exists when a business becomes complacent about its product strategy, thereby failing to keep up with market changes.

Mark-up (or the profit margin)

The difference between the price and the cost per unit.

Merchandise

Refers to a retailer’s range of goods that are available for sale, often used for promotional purposes, e.g., Disney toys sold at their theme parks.

Multi-brand strategy

This marketing strategy involves a business developing more than one brand as part of its overall product strategy.

Multi-channel distribution strategy

This refers to a firm’s use of a different distribution channels to get its products to customers.

One-channel distribution network

This method of distribution involves the use of a single intermediary, such as an agent or retailers.

Payment methods

As part of “process” in the marketing mix, this refers to the different methods that customer can pay for the purchase of goods and services, e.g., cashless payment options.

Penetration pricing

A pricing method that involves a firm setting low prices so as to gain entry in a new market. The firm will then raise the price once the product or brand has established itself in the industry.

Personal selling

The use of sales personnel to sell goods and services with customers on a face-to-face basis.

Persuasive promotion

Describes one of the purposes of promotion in the marketing mix, which is used to encourage or convince customers to make a purchase and to improve customer loyalty.

Point of sale (POS)

The promotion of products in retail outlets where customers can buy the goods.

Predatory pricing

A strategy that involves charging a low price, sometimes even below the cost, so as to damage the sales of rivals.

Premium pricing

A pricing method that involves a firm charging significantly higher prices than similar or competing products in the market. This is usually due to the prestige or quality associated with the product or brand.

Price

The value of a good or service that is paid by the customer.

Price elasticity of demand

PED measures the extent to which the demand for a good or service is responsive to changes in the price of that product.

Price leadership

A strategy of following the price set by the dominant firm in the industry (the firm with the largest market share).

Price wars

The process of rival businesses competing by continually reducing prices so as to threaten the competitiveness of rivals in the market.

Pricing methods

This refers to the various ways a business can set a price for its goods and services. The price of a good or service is paid by customers.

Process

This refers to the ways in which a service is provided or delivered, such as various payment systems, queuing systems, after-sales care, and delivery service options.

Producer goods

These are products purchased by a business for its commercial use, rather than for private consumption, e.g., machinery, equipment, tools, fixtures and fittings, and office stationery.

Product

This refers to both physical (goods) and non-physical (services) items sold by a business or purchased by a customer.

Product differentiation

This refers to marketing strategies used to make a product distinct from its rivals, e.g., branding, product features, and packaging.

Product life cycle (PLC)

Marketing theory showing the different stages that most products go through from their research and development (R&D) stage to their final removal from the market.

Product portfolio

The range and mix of products sold by a business, including the various brands of all the products it owns.

Promotion

The various marketing processes used to inform customers about a product and persuading them to purchase the product.

Promotional mix

The range of above and below the line methods used to promote a product as part of a larger marketing mix.

Prototype

This is a trial product, used during the pre-launch stage of the product life cycle, to evaluate the potential commercial success of the product.

Public relations

The management function overseeing public attitudes and opinions of an organization to gain public understanding and support.

Retailers

These are commercial businesses that sell a manufacturer’s products directly to consumers.

Sales promotion

A short-term promotional tactic used to entice customers to buy a certain product.

Services

Intangible products or non-physical products offered by a business, e.g., education, entertainment, healthcare, as well as travel and tourism.

Slogans

These are corporate catchphrases used as a marketing strategy to signify the or represent a brand, product, or business in a favourable and memorable way.

Social media marketing (SMM)

The use of online content that users can upload and share to a website using a suitable medium platform, e.g., Facebook, Google. Instagram, Twitter, and YouTube.

Social networking

This refers to the use of Internet-based websites, platforms and apps to share online content by building online communities.

Sponsorship

A promotional strategy that involves a business providing financial support to another organization or event in return for marketing exposure.

Telemarketing

A direct promotional marketing strategy that involves salespeople using the telephone to call existing and potential customers about a firm’s latest product offerings.

Telemarketing

The use of telephone systems to sell products directly to the potential customers, such as insurance, movie tickets or package holidays.

Test marketing

This is part of the pre-launch stage in a product’s life cycle, when a business trials a new product with a small number of customers, usually in a specific geographical location prior to the official launch.

Three-channel distribution network

This type of distribution channel uses three intermediaries. It often involves an agent who sells the goods to wholesalers on behalf of the producer. In turn, wholesalers sell to retailers.

Through the line (TTL) promotion

TTL refers to the promotional strategies that involve both above the line (ATL) and below the line (BTL) promotional methods. It enables customers to engage with the product and/or brand in different ways.

Trade shows

Also known as trade fairs, these are promotional events where firms exhibit and sell their goods and services to potential customers in attendance.

Trademark

A form of legal protection for the intellectual property (IP) of a business by giving the owner of the IP to have exclusive use of the brand name.

Two-channel distribution network

This method of distribution involves the use of two intermediaries, usually wholesalers and retailers.

Wholesalers

These are intermediaries that buy products from a manufacturer and sell these in smaller quantities to retailers.

Zero-channel distribution network

Also known as direct distribution, this method does not use any intermediaries, i.e., the producer sells directly to the consumer.