Using the marketing mix to make business decisions.pptx

EDEXCEL GCSE BUSINESS · PAPER 2

Using the marketing mix to make business decisions

Making marketing decisions

Lesson 5 of 5

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EDEXCEL GCSE BUSINESS · PAPER 2

Last Lesson

Making marketing decisions

Lesson 5 of 5

Answer from memory before the answers appear.

1

What is a distribution channel?

2

What does a wholesaler do?

3

What is multi-channel distribution?

4

Give one advantage of an e-tailer over a shop.

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EDEXCEL GCSE BUSINESS · PAPER 2

Last Lesson - Answers

Making marketing decisions

Lesson 5 of 5

1

What is a distribution channel?

The route a product takes from producer to customer.

2

What does a wholesaler do?

Buys in bulk from producers and sells smaller quantities to retailers.

3

What is multi-channel distribution?

Selling through several channels at once.

4

Give one advantage of an e-tailer over a shop.

Lower costs, wider reach or 24-hour opening.

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EDEXCEL GCSE BUSINESS · PAPER 2

Learning Objectives

Making marketing decisions

Lesson 5 of 5

1

Explain how each element of the marketing mix influences the others.

2

Explain how to use the marketing mix to build competitive advantage.

3

Explain how an integrated marketing mix influences competitive advantage.

4

Use the marketing mix to make and justify business decisions.

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EDEXCEL GCSE BUSINESS · PAPER 2

Each P Affects the Others

Making marketing decisions

Lesson 5 of 5

Change one element of the mix, and the others usually have to change too.

Product affects price

A higher-quality product costs more to make and can justify a higher price.

Price affects promotion

A low price may be the main message of the promotion; a premium price needs promotion that builds a premium image.

Promotion affects place

Promoting nationally only works if the product is available nationally.

Place affects price

Selling through intermediaries adds costs, so the price rises; selling direct online can lower it.

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EDEXCEL GCSE BUSINESS · PAPER 2

One Change, Four Effects

Making marketing decisions

Lesson 5 of 5

Decision

Product

Price

Promotion

Place

Launch a premium range

Better ingredients and packaging

Higher

Stylish, aspirational adverts

Upmarket stores and own website

Target students

Smaller, simpler versions

Lower, with student discounts

Social media and campus events

Near universities and online

Enter a new country

Adapted to local tastes

Set for local incomes and rivals

In the local language and media

Local retailers or a local website

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EDEXCEL GCSE BUSINESS · PAPER 2

Competitive Advantage

Making marketing decisions

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Competitive advantage is anything that makes a business more attractive to customers than its rivals.

Through product

A better, unique or more reliable product that rivals cannot match.

Through price

Lower costs that allow lower prices, or a premium brand that allows higher ones.

Through promotion

A strong, trusted brand that customers recognise and choose.

Through place

Being easier to buy from - more locations, faster delivery, better online shopping.

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EDEXCEL GCSE BUSINESS · PAPER 2

An Integrated Mix Builds Advantage

Making marketing decisions

Lesson 5 of 5

When all four Ps work together, the advantage is hard for rivals to copy.

Consistency

Every element sends the same message to the same target market.

Hard to copy

A rival can copy a price, but not a whole mix built over years.

Clear positioning

Customers know exactly what the business stands for.

A weak link

One element that does not fit - a cheap-looking advert for a luxury product - damages the whole mix.

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EDEXCEL GCSE BUSINESS · PAPER 2

A Mix That Fits

Making marketing decisions

Lesson 5 of 5

Premium product, premium price, stylish promotion, upmarket place: an integrated mix.

Every element of this launch says the same thing: premium. The packaging, the price, the display and the store all match - and that consistency is what convinces customers the product is worth paying more for.

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EDEXCEL GCSE BUSINESS · PAPER 2

Making marketing decisions

Lesson 5 of 5

CASE STUDY

Primark: A Low-Cost Mix

Primark sells fashionable clothing at very low prices, and every element of its marketing mix supports that. Its product is on-trend but simple and made in huge quantities to keep costs down. Its prices are among the lowest on the high street. For most of its history it spent very little on traditional advertising, relying on social media, word of mouth and customers sharing their purchases online. And it sold mainly through large stores in busy locations rather than online, avoiding the costs of delivery and returns. The integrated low-cost mix is hard for rivals to copy.

Low

Prices, costs and advertising spend

Stores

Its main place, rather than online delivery

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EDEXCEL GCSE BUSINESS · PAPER 2

Key Terms

Making marketing decisions

Lesson 5 of 5

Marketing mix

The combination of product, price, promotion and place.

Integrated marketing mix

A mix where all four Ps fit together for the same target market.

Competitive advantage

Anything that makes a business more attractive to customers than its rivals.

Positioning

How a business wants customers to see its product compared with competitors'.

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EDEXCEL GCSE BUSINESS · PAPER 2

Making marketing decisions

Lesson 5 of 5

YOUR TASK

Build the Mix

15 minutes

A bakery chain wants to launch a new range of gluten-free cakes. Choose a target market, then decide all four Ps so that they fit together. Finally, explain what gives your range a competitive advantage.

1

Choose a target market.

2

Decide the product, price, promotion and place.

3

Check they fit together.

4

Explain the competitive advantage.

WHAT A GOOD ANSWER SHOWS

A clear target market with all four Ps consistent with it, and a competitive advantage linked to at least one P.

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EDEXCEL GCSE BUSINESS · PAPER 2

Can I...?

Making marketing decisions

Lesson 5 of 5

Explain how each P influences the others.

Explain competitive advantage.

Explain how an integrated mix creates competitive advantage.

Use the mix to make and justify a business decision.

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EDEXCEL GCSE BUSINESS · PAPER 2

Summary & Exam Focus

Each element of the marketing mix affects the others.

Competitive advantage can come from product, price, promotion or place.

An integrated mix is consistent, clear and hard for rivals to copy.

EXAM FOCUS

Explain one way a business could use its marketing mix to gain a competitive advantage. (3 marks)

In mix questions, show the knock-on effect: a change to one P should lead you to explain how at least one other P changes too.

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