Understanding the concept of the Marketing Mix.

1. What is Marketing and how is it utilized ?
By : Cruz

2. What is
marketing ?
We see marketing as being the philosophy and
process that modern businesses or individuals
endeavour in creating, communicating, delivering and
exchanging offerings, products and services to
customer, clients, partners and large societies.
Source : BTEC Level 3 National Business, Book 1,
Pg 86

3. What are the 4 P’s and what is the marketing
mix
PRODUCT PLACE PRICE PROMOTION

4. Product
• Product – Usually a a product or service that is sold to customers or
businesses. Customers usually buy a product to meet and satisfy a particular
need. Which entails firms or individual to concentrate on making products
that best meet their customers requirements.

5. Price
• Price – Denotes the amount a customer will need to invest to
purchase a service or acquire a product from a business. For an
emerging or established businesses they may need to consider the
supply expenses, seasonal discounts, and competitors price in
order to uplift sales and revenue. A business can choose between
two pricing strategies when launching a new product or service
: Penetration and Price Skimming
• Penetration Pricing : Means setting a relatively low price to
boost sales. It is often used when a new product is launched, or
if the firm’s main objective is rapidly occupy a large stake of
market share
• Price Skimming : Means setting a relatively high price to boost
profits. It is often used by well-known business launching new,
high quality, premium product

6. Place
• Place –Usually a place represents a
geographical location a business positions itself
strategically such as : a City, a Town or even
an amusement park to maximize their chances
of sales by seizing the initial prospects
attention and making his purchasing journey and
experience as easy as possible.

7. Promotion
• Promotion –This process refers to the attempt
businesses make to canalize through advertising
channels such as : word of mouth, press
reports commissions and awards, incentives
and direct marketing and many more in order to
maximize customer awareness and help them
understand why a certain product or service is
beneficial for them and why the should invest in
a certain product or service for
their personal benefit.

8. Marketing
mix
• Marketing Mix -This is generally understood as
being the foundation of a comprehensive
marketing plan an emerging or
established business may adopt in order to
maintain their timing effective, investment
specifically directed and their information as
relevant as possible.

9. What are the main objectives of Marketing
• The main objective of marketing is to identify, anticipate and satisfy their target market
through the initial phase of purchase towards the very end. When Marketing, it is vital that
businesses keep their information as SMART as possible :
• S – pecific ( Details exactly what needs to be done)
• M –esuarable (Acheivment or progress can be gauged)
• A –ttainable (Objective is well interpreted and accepted by those who shall be executing the
task)
• R –ealisitic (The task and objective is possible to attain <Vital for a motivational and
persevering effect>)
• T –ime Manageable (Time period is fully stated and thoroughly outlined)

10. Boston Matrix
• The Boston matrix is globally know n as ta tool used for product portfolio analysis and management, developed by the Boston
consulting group in 1970
• This marketing instrument is used to gauge two fundamental business figures : Market shares and market growth. Generally these
two figures are analysed through 4 categories :
• Dog –If a company has a low market share and is at a low rate of growth it is considered a "Dog" and they usually un out of
business or become obsolete in the market
• Cash cow –This happens when a Business has a large market share percentage and a slow market growth which results in an
increased turnover for a minimal investment. "Milking it for all its worth)
• Question marks –Products here don't have a significant market share hence why they don’t generate much profit, however,
unlike dogs, they are situated in a high growth market so if the right information and correct advertising channels ae utilised
effectively, question marks can transform into Cash cows, or Stars
• Stars –At this phase, a business usually attracts new investors and hep a business to gain or maintain a dominant position in a
space of market growth.

11. Boston
matrix

12. What is Ansoff Matrix ?
4 different strategies businesses ventured in to se which one would best outcompete rivals and make firms effective in the
market :
1. Market development –This occurs when a company directs and markets their existing product to a completely
different market. Example : Coca-cola being a company initially founded in the USA, As a form of Market
Development, they Coca-Cola begin to market their product in New Zealand, for an example.
2. Pentation – This involves acquiring a larger portion of market shares by selling more of the company's products to
the given market which at prior over a certain period have acquired products or services for the same business
holding a small position in the market though utilising the penetration method to increase their customer base.
3. Product development –This occurs when a business such as Coca-Cola for an example develop a new product
though market that product in the same geographical region and market. Diet Coke, Coke Zero being all promoted,
marketed and commercialised in the USA and not New Zealand for an example.
4. Diversification – This takes place when a business directs and markets a new product to a completely new target
market. This usually works in two forms : Firstly, the business may produce a new product in the region which it
understands, or it may reach a vastly new unusual region or area.

13. Ansoff
Matrix

14. What is the Product Life Cycle ?
• It is an important figure analysed by businesses, marketers and competitors of a specific company, as it
observes the products progress from initial design in the research and development stage, until the point of
its declination or even if the product is a success, graphs and charts are formed to represent the maturity
behaviour of a product throughout a certain period.
• When talking about product life cycle, it is important that we bear 4 stages in mind to understand how the
product is behaving in its market :
1. Research and Development stage
2. Introduction stage
3. Growth stage
4. Maturity stage
5. Declination stage