CHAPTER 15 – THE MARKETING MIX The marketing mix is broken down into four main elements, often called the 4Ps:
1. Product (what it is and what features it will have) 2. Price (how much it will cost) 3. Place (where it will be sold) 4. Promotion (how it will be sold).
For the marketing process to be a success, each element of the marketing mix must be carefully considered. To decide on the right product or service at the right price, and where and how to sell it, a business must ask the following questions.
Product
• What is the product or service’s unique selling point (USP)? What makes it different from similar products or services?
• Who are the competitors and what are they offering? • Who is the target market and how will the product or service meet their needs? • How will the product be packaged to appeal to consumers?
Price
What will be charged for our product? This is based on: • How much will the product cost to make? • What prices are competitors charging? • What profit does the business want to make? • What is the income level of the target market?
Place
Where will you sell the product/service? The options are: • To retailers (shops) • To wholesalers (who will buy the product in bulk, then sell it on to retailers) • Directly (i.e. from our own shop or website)
Promotion • How will the target market find out about the product or service?
