Marketing Mix Basics
A brilliant product that nobody hears about still fails. Meet the marketing mix: product, price, promotion and place, and how the four Ps must work together for a business to succeed.
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The perfect mix
A brilliant product that nobody hears about will still fail. Getting a business right means blending four things - the marketing mix, or the four Ps. This module is about Product, Price, Promotion and Place, and how they work together.
The four Ps
The marketing mix is built from four ideas:
What is the mix?
What is the marketing mix?
- The four Ps: product, price, promotion and place
- The total profit a business makes
- The number of staff a business employs
- The tax a business pays each year
Budget or premium?
The four Ps must fit each other. Compare two very different mixes.
Which P?
- Product
- Price
- Promotion
- Place
- The design, features and quality of what is sold
- How much the customer is charged
- Adverts, offers and social media that spread the word
- The shops or websites where it reaches customers
They work together
The four Ps are strongest when they work together. A premium product needs a high price, upmarket promotion and an exclusive place. A business must also keep the mix balanced against its competitors, changing customer needs and new technology, such as selling online.
Spot the four Ps
Which FOUR make up the marketing mix?
- Product
- Price
- Promotion
- Place
- Profit
Work out the revenue
Revenue = price x quantity sold. A shop sells 200 mugs at 5 pounds each. What is the total revenue, in pounds?
Design the mix
Put the steps of designing a marketing mix in a sensible order.
- Research what customers want
- Design a product to meet that need
- Set a price that fits the product and market
- Plan promotion to spread the word
- Choose the right place to sell it
Complete the mix
The marketing mix is made of four Ps. The _____ is what the business sells. The _____ is what the customer pays. _____ is how the product is advertised. _____ is where the product is sold. The four Ps work best when they _____ together.
True or false?
Tap the TWO statements that are TRUE about the marketing mix.
- The four Ps should work together, not against each other.
- Place includes selling online as well as in shops.
- Promotion means the same as the product itself.
- Price is not part of the marketing mix.
- A premium product usually has the lowest possible price.
Which P?
A business decides to sell its drinks in supermarkets and online. Which P is this?
- Place
- Product
- Price
- Promotion
Fix the mix
A small business is launching a new brand of premium trainers. Help them choose each part of the mix.
- They want a premium image. What price should they set?
- How should they promote the premium trainers?
- Where should they sell them to match the premium image?
Plan a mix
A new local coffee shop wants to attract students. Recommend a marketing mix for it, and justify your choices.
- Describe a product that would suit students
- Suggest a suitable price and give a reason
- Explain how you would promote it to students
- Choose a place to sell it and give a reason