KNOW YOUR MARKETING MIX
If you are a first year A Level Business student then you’ll need to know about the marketing mix. The marketing mix is a combination of choices that influence a person’s decision to buy. There are 7 elements to the marketing mix known as the 7Ps. Combinations of the 7Ps are used by businesses to influence customers to buy products.
|Price||The price of the product is important. This includes the price charged for different sizes of product. Things like shampoo might come in different sizes such as 100ml, 200ml and 400ml. Payment terms are also important. Things to consider are whether a customer can pay in instalments or can buy now, pay later.|
|Product||Here you need to think about the product itself. Things like its specification, design, it’s and reliability are important. Is there any after sales service or does the product come with a warranty agreement?|
|Place||Place refers to the distribution of the product. How does the product move from the manufacturer to the final customer? in some cases you’ll buy a product direct from the producer and in other cases the product is sold to intermediaries such as retailers who sell to the final customer.|
|Promotion||How does a business communicate about their product? Advertising – this can include advertisements in magazines and newspapers or on billboards. It includes online advertising and the use of pay per click advertising. Public Relations – a business could try and to get coverage of their product by using the press to interview their CEO. There is also the possibility of sponsorship deals. Sales Promotions – One we see frequently is special offers such as Buy One Get One Free (BOGOF). Sales Teams – Many business have sales teams to contact potential customers.|
|People||The concerns the people involved in a transaction. This could be the people who take your call or answer your email about a product, the people who serve you in a shop or who cut your hair in a salon. Their skills and approach will affect how you perceive a product.|
|Process||This concerns how you actually buy the product. This could be in a store, on the internet, or in a showroom. A customer’s satisfaction can be affected by their experience of buying the product so improving the buying experience is key to improving customer satisfaction.|
|Physical Environment||This refers to the physical premises of a business such as a shop or office. If you go to a hair salon, you will look around and see how carefully it’s been designed and laid out. Things like the signage, the reception, desk, and the music playing will all influence a person’s perception of the business.|
This is an overview of the 7Ps and you should study this topic in more detail if you are studying Business A Level.