1.4.3 - the marketing mix

Marketing mix

The combination of factors (Product, Price, Place, Promotion) that a business uses to influence customers to buy its products or services.

Price

The amount of money a customer must pay to purchase a product or service.

Product

The item or service that a business offers to meet customer needs or wants

Promotion

The methods used by a business to communicate information about its products and persuade customers to buy them (e.g., advertising, sales promotions).

Place

The distribution channels or locations used to make a product available to customers.

Price war

When rival companies continuously lower prices to undercut each other and attract customers, often reducing profits.

Product differentiation

The process of making a product stand out from competitors by emphasising unique features, quality, or branding.

Brand loyalty

When customers consistently choose one brand over competitors due to positive experiences or emotional attachment.

Market share

The percentage of total sales in a market that is earned by a particular company or product.

Recession

A period of economic decline characterised by reduced consumer spending, business activity, and employment.

Promotional mix

The combination of promotional tools (e.g., advertising, sales promotion, public relations, personal selling, direct marketing) that a business uses to achieve its marketing objectives.