Edexcel A Level Business Your notes

1.3 Marketing Mix & Strategy

Contents
Product or Service Design
Branding & Promotion
Pricing Strategy
Distribution
Marketing Strategy

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 Product or Service Design
Your notes
An introduction to the marketing mix
The marketing mix (4Ps of marketing) provides a framework for businesses to create
and implement successful marketing strategies
The 4Ps represent the key elements of a marketing strategy
Product
Price
Place
Promotion
These four components work together to satisfy the needs and want of a target market
while achieving the company's objectives
By understanding and manipulating the marketing mix, businesses can differentiate
themselves from competitors
A marketing mix is an essential tool for any company looking to maximise its marketing
impact and achieve long-term success

Each business combines the different elements of the marketing mix in unique ways to
maximize their profitability

The design mix

The product design mix refers to the combination of elements that make up a product's
design
These elements include function, aesthetics, and cost

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 Balancing the elements of function, aesthetics, and cost, helps the product design to
be both functional and attractive, while also being cost-effective for both the
manufacturer and the consumer Your notes
Some manufacturers aim to balance all three elements
e.g. Fentimans ginger beer is relatively affordable and is packaged in eye
catching bottles and the product itself is very good quality
Other manufacturers may focus on one aspect, more than the others
e.g. Asda own brand of ginger beer is produced at the lowest possible cost and
sold to consumers at a very low price
The design mix

Fentimans prioritises all three elements of the product design while Asda focuses on cost

Function
The function of a product refers to its intended purpose and the specific tasks it is
designed to perform
A product's function is the most important aspect of its design because it determines
how well the product will meet the needs of its intended users
E.g. A multi-plug adaptor that breaks after one month of use will be seen by
customers to fulfil its function

Aesthetics
Aesthetics refers to the product's visual and sensory appeal, including its form, shape,
colour, and texture
Aesthetics play an important role in attracting customers, creating brand loyalty, and
generating word of mouth recommendations
E.g. Apple products are well known for their pleasing looks and use of quality
materials

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Cost
The cost of production must be considered when designing a product, as it directly Your notes
affects the price point at which it can be sold
A well-designed product should balance cost and value, ensuring that customers
perceive the product as valuable enough to justify its cost while still maintaining
profitability for the manufacturer
E.g. Asda own brand of ginger beer is very cheap to produce and is sold at a very low
price

Changes in the design mix to reflect social trends

Social trends refer to changes in attitudes, behaviours and lifestyles of people
Changes to any of these require companies to adapt their products to remain
relevant to their customers
Social trends can significantly impact the product design mix, especially regarding
concerns over resource depletion and ethical sourcing

Social trends which require adaptation of the design mix

Current changes Explanation
in social trends

Concerns about Customers are becoming increasingly aware of the need to

Resource conserve natural resources and reduce waste
Depletion
The product design mix may change to reflect waste
minimisation, re-use, and recycling
Companies may choose to design products that use fewer
materials, are more durable, and can be easily disassembled
for recycling or repair
E.g. In October 2020, Superdry announced that all of their
jackets would use recycled polyester in their lining (made
from plastic bottles) as opposed to new polyester

Concerns about Ethical sourcing means that products are produced without
Ethical Sourcing exploitation of workers or environmental damage
Companies may change their product design mix to incorporate
sustainable materials and production processes
E.g. Tony's Chocolonely is committed to producing
chocolate that is made from cocoa farmed with 100% slave
free (or child) labour

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 Branding & Promotion
Your notes
Types of promotion
Promotion is an important element of the marketing mix as it plays a crucial role in
generating customer awareness, interest and desire for a product/service
A business can communicate its value proposition to potential customers and
differentiate itself from competitors
Promotion helps to build brand awareness and loyalty which can lead to repeat
purchases and referrals
The promotion element of the marketing mix includes a variety of promotional methods

Types of promotion

The different types of promotional methods available to a business to communicate with

their target market

Each method has advantages and disadvantages associated with their use
Businesses must select the most appropriate methods for their product/service, target
audience and budget

An assessment of promotional strategies

Method Advantages Disadvantages

Advertising It can reach large Can be expensive

audiences and
Promotion through paid increase brand The effectiveness of
channels such as television, awareness advertising can be

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radio, print media Can also be used to difficult to measure
(magazines), and online create a specific Many customers tune
advertising brand image or out or ignore ads Your notes
message, e.g. the
advertising
campaign run by
Compare the
Market (Meerkat)

Direct Marketing Businesses can Can be intrusive as

target specific customers may
Communicating directly with audiences and perceive it as spam
customers through email, personalise their
text message, social media message to Can also be costly,
or post individual especially if
customers businesses do not
have an established
Direct marketing is customer database or
also measurable, need to purchase
which enables leads
businesses to track
their results and
adjust their strategy
accordingly

Sales Promotions Can quickly boost Can be expensive

sales or customer especially if the
Techniques that encourage engagement promotion requires a
the purchase of a product by heavy discounting
offering temporary Can help to clear
incentives or discounts such out stock or Can attract deal-
as free samples, buy one get promote a new seeking customers
one free (bogof), discount product who may not be loyal
coupons, loyalty cards, and to the brand
rebates (customers have to Can encourage
mail in to receive money impulse purchases May reduce the sales
back) of full-priced products
Can be targeted to
specific segments
of customers

Personal Selling Allows businesses Can be expensive due

to build to the cost of hiring
Occurs when a salesperson relationships with and training sales
interacts with potential their customers and staff
customers one-on-one, understand their
either in person or through specific needs The impact of personal
digital communication selling can be limited
channels Enables businesses as it is difficult to scale
to provide to large audiences
personalised

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 advice and
guidance to
customers Your notes
Sponsorship Can help to build Can be expensive,
brand awareness especially for high-
An agreement where a and credibility profile events or
company provides financial properties
or other support to an event, Can create
team, or organization in emotional May not directly drive
exchange for marketing connections with sales
exposure target audiences
May be subject to
Can take many forms, such Can support negative publicity if
as logo placement or specific business the sponsored entity
naming rights (Arsenal objectives, such as experiences a scandal
Emirates Stadium) entering new or controversy e.g. In
markets or 2022 Kanye West was
reaching new dropped by Adidas
customers after his anti Semitic
outbursts

Public Relations (PR) Can enhance a PR can be time-

business's consuming and is
Building relationships with reputation and difficult to measure
the public and managing credibility the direct impact of PR
reputation activities on the profits
This can lead to of a profits
Public relations activities can increased
include media relations, customer loyalty
crisis management and and sales
community outreach
Can be cost-
E.g.in 2018 KFC in Ireland ran effective when
out of chicken due to some compared to
supply chain issues and ran a advertising or
brilliant PR strategy in which personal selling
they rearranged the letters in
their name to FCK and
owned the problem

Digital Communications Can be highly Can be easily ignored

targeted to or filtered out by
Any form of marketing or specific customer customers
communication that is segments
delivered electronically, such May require significant
as social media, search Can provide real- investment in
engine optimisation (SEO), time engagement technology or data
or mobile apps such as and feedback from infrastructure
Instagram and Twitter customers
May be subject to data
Can be used for building privacy regulations or
brand awareness, generating security breaches

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 leads, or driving sales May not be effective
for reaching older or
less digitally-savvy Your notes
customer segments.

Types of branding
Branding is the process of creating a unique and identifiable name, design, symbol, or
other feature that differentiates a product or company from its competitors
Branding is important to a business for a variety of reasons:
Branding establishes recognition and identity
Branding builds trust and credibility
Branding differentiates a business from its competitors
Branding creates an emotional connection with customers which helps to generate
repeat purchases
Branding supports marketing and advertising efforts

Types of branding

The three different types of branding available to businesses

Manufacturer/corporate branding
This refers to the use of a company name or logo to promote all the products or
services offered by the company
This type of branding is used by companies like Nestlé, Nike, and Apple

Advantages and disadvantages of corporate branding

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 Advantages Disadvantages
Your notes
Creates strong brand recognition If a company's reputation is damaged by a
and reputation for the company, product, it can have a negative impact on
which can increase customer all the products offered under that brand
loyalty and trust
If the company faces intense competition
Allows the company to leverage its in one market (e.g. smartphones), it may
existing reputation and customer affect the sales of all the products offered
base to introduce new products across other markets (e.g .laptops and
more easily desktops)
It helps build economies of scale
by promoting multiple products
under one brand, which can reduce
marketing costs and increase
profitability

Product branding
This refers to the use of a unique name, design, or symbol to promote a specific product
E.g. KitKat, Coca-Cola, and McDonald's Big Mac

Advantages and disadvantages of product branding

Advantages Disadvantages

Creates a distinct identity for the The cost of creating and promoting a
product, which can help to differentiate new brand for each product can be
it from competitors and increase brand expensive
loyalty
Introducing new products under
Allows the company to market different different brands is difficult as the
products to different segments of the business must build a new brand for
market, e.g. Coco Cola and Coke Zero each product from scratch
Can help to build customer loyalty and Different products within the brand
trust by associating the product with a may have different levels of quality,
specific quality and benefits, e.g. Dyson which can affect customer
Vacuum Cleaners satisfaction

Own branding
Own brand or private label branding refers to the use of a retailer's name to promote a
specific product or service
Own branding is often used by supermarkets
E.g. ASDA chocolate, Tesco's Finest range, and Sainsbury's Basics range

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Advantages and disadvantages of own brand products
Advantages Disadvantages Your notes

It can help retailers differentiate Own brand products may have a lower
themselves from their competitors by perceived quality than branded
offering unique products products which can affect customer
loyalty and trust
It allows retailers to offer products at a
lower cost than branded products,
which can help to increase sales and
profitability
It can help to build customer loyalty by
offering exclusive products that are not
available elsewhere

The Benefits of branding

Strong branding can provide several benefits to a business, including:

Added value
Strong branding can add value to a product by creating a perception of quality,
reliability, and trust

Ability to charge premium prices

Customers may be willing to pay more for a product that is associated with a well-
established brand
They perceive products with strong branding to be of higher quality and therefore worth
the extra cost

Reduced price elasticity of demand

Strong branding can also reduce the price elasticity of demand for a product
(customers are less sensitive to price changes)
This is because customers who are loyal to a brand are more likely to continue
purchasing the product even if the price increases

Ways to build a brand

Brands can be built using any one, or a combination of the following methods:
By developing unique selling points (USPs)
Through advertising
Through sponsorship
Through the use of social media

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Examples of brand building
Method Explanation Example Your notes

Unique selling USPs are the features that make a Apple is known for its
points (USPs) product/service stand out from innovative and sleek design
its competitors and use of quality
materials, which sets its
Brands can build their reputation products apart from its
by emphasising these unique competitors
qualities in their marketing efforts
The company has built its
brand around this USP and
is recognised worldwide
for its premium design

Advertising Brands can create compelling Coca-Cola has

ads that resonate with their target successfully built its brand
audience, raise brand awareness, through advertising
and communicate their value
proposition Iconic ads over the years
With the right advertising have become synonymous
strategy, brands create a strong with the brand
emotional connection with their E.g. The "Share a Coke"
audience and inspire brand campaign encouraged
loyalty people to buy Coca-Cola
bottles with their friends'
names on them and was a
massive success

Sponsorship Partnering with events, Nike has sponsored many

organisations, or individuals can high-profile athletes and
help brands gain exposure and sports events, such as the
build their reputation by aligning Olympics and the World
themselves with positive Cup
associations or values
Nike has built a reputation
for being a brand that
champions excellence and
inspires people to be their
best

Social media With the right social media Glossier has a strong
strategy, brands can build a loyal presence on platforms like
following and create a Instagram and it engages
community around their brand with its audience and
shares user-generated
content

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 Glossier's social media
strategy has helped the
brand build a loyal Your notes
following

Changes in branding and promotion to reflect

social trends
Businesses which respond quickly to changing social trends can better meet the needs
of their customers
Being able to quickly adapt their branding and promotion strategies will ensure that they
maximise communication opportunities with their customers, which will help to
develop brand loyalty and increase profits
Three current social trends businesses are aware of and adapting to include viral
marketing, the use of social media, and emotional branding

Viral marketing
Is a strategy where businesses use online platforms to promote their products by
creating content at specific times, which can easily be shared and commented on
E.g. During the COVID-19 pandemic, Coca-Cola and McDonald's ran campaigns
that emphasised community, which aligned with the public's need for social
support

Social media
As social media platforms evolve, businesses must also adapt their social media
strategies to keep up with the latest trends
E.g. Instagram has been a popular platform for businesses to promote their
products through influencer partnerships
More recently, many businesses have shifted their focus to promoting their brands
through short-form video content on platforms like TikTok

Emotional branding
Emotional branding is a strategy where companies build strong emotional connections
with their customers by appealing to their values, beliefs, and emotions
E.g. Brands like Patagonia and TOMS have built their entire brand identities around
their commitments to environmental and social causes, which resonates with
customers who prioritise these values

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 Pricing Strategy
Your notes
Types of pricing strategies
Choosing the right pricing strategy is essential for a business to be profitable,
competitive, and successful in the long run

Common pricing strategies

Different types of pricing strategies

Explanation of pricing strategies

Pricing Explanation
strategy

Cost plus The business calculates the cost of production and then adds a
markup to determine the final price
The markup covers the cost of production plus the business's
desired profit margin
The formula to calculate the cost-plus price is

Unit cost + Mark up percentage x Unit cost

( )

This pricing strategy is simple to calculate

It is commonly used by manufacturers that produce standardised
goods, e.g. washing machines

Price The business sets a high price for a new product/service when it is
skimming first introduced to the market
This is effective when an established brand is introducing a new
product and there is a high demand for it, e.g. successive models of

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 Apple's Macbook Air
The high price helps the business recover its development and
marketing costs quickly Your notes
The business will then gradually lower the price to ensure sales
continue

Penetration The business sets a low price for a new product/service when it is
first introduced
This is effective when a business wants to quickly capture market
share and attract price-sensitive customers, e.g. many new
perfumes launch using penetration pricing
Once they have enough customers, the business will start to raise
the price

Predatory The business sets prices so low that it drives its competitors out of
the market
This strategy is illegal in many countries as it is considered anti-
competitive and harms customers by reducing choice in the market

Competitive The business sets its prices based on its competitors' prices
This is effective when a business is in a highly competitive market
and wants to maintain its market share
The business must continually monitor its competitors' prices and
adjust its prices accordingly to remain competitive

Psychological This pricing strategy takes into account the customer's emotions,
beliefs, and attitudes towards the product/service E.g. a business
may set its prices at £9.99 instead of £10 as customers perceive the
former as a better value

Factors influencing the choice of pricing strategy

By understanding their customers, competitors, and costs, businesses can set prices
that maximise revenue and profitability
Pricing can play a significant role in positioning the brand in the market and help a firm to
compete effectively
A business needs to consider various factors when setting its pricing strategy
Understanding these factors can help a business make informed decisions about
its pricing and increase its chances of success

Factors to consider when choosing a pricing strategy

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 Number of USPs/ Price elasticity of demand Level of competition
amount of differentiation
Your notes
Products with many A business needs to In highly competitive
USPs and high consider the price markets, businesses
differentiation can elasticity of demand may need to set their
command higher when setting its prices prices low to remain
prices competitive
E.g. If a business is in a
E.g. Dyson vacuum highly competitive E.g. The budget airline
cleaners have unique market with many industry is highly
features which allow substitutes, lowering competitive and
the company to charge prices will airlines keep their
a premium price increase revenue prices low to increase
demand
Businesses should set
lower prices If the In less competitive
product is price elastic markets, businesses
may be able to set
Businesses should set higher prices
higher prices If the
product is price inelastic

Strength of the brand Stage in the product life Costs and the need to
cycle make a profit

A strong brand with a In the introduction stage, Prices must cover the
loyal customer base prices may be set lower to cost of production
can command higher attract customers and and provide a
prices build market share reasonable profit
margin
E.g. Nike's strong In the growth stage,
brand allows it to prices can increase as E.g. A restaurant
charge premium demand for the product needs to consider the
prices for its athletic increases cost of ingredients,
shoes and apparel labour, rent, and other
In the maturity stage, expenses when
prices may need to be setting menu prices
lowered again

Examiner Tips and Tricks

Exam questions frequently ask you to be able to justify the most appropriate pricing
strategy for a good or service
When studying the data provided, consider the points above and then make a
recommendation

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 For example, in launching a new product with a strong brand identity, it may be
appropriate to use a price skimming strategy to recover research and development
costs. Your notes

Changes in pricing to account for social trends

Both online sales and price comparison sites have had a significant impact on pricing
strategies
Retailers must continually adapt to remain competitive in these markets

Online sales
Online sales offer customers convenience and 24/7 accessibility
Retailers have shifted their focus to online sales and adjusted their pricing strategies
One way that pricing has changed to reflect this trend is through the use of dynamic
pricing
Retailers can adjust prices in real-time based on factors such as demand and
competition
Prices are higher when supply is lower and vice versa
Retailers may also offer different prices for online purchases compared to in-store
purchases to incentivise customers to shop online, which may mean the retailer requires
fewer physical stores
This will reduce the retailer's costs

Price comparison websites

Retailers have had to adjust their pricing strategies to remain competitive in an online
marketplace where customers can easily compare prices, e.g.
www.comparethemarket.com
Pricing has changed to reflect the rise in price comparison through the use of price-
matching policies
Retailers now offer to match the prices of their competitors to prevent customers
from switching to a competitor with a lower price
Retailers may also use pricing algorithms to monitor the prices of their competitors and
adjust their prices automatically

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 Distribution
Your notes
Types of distribution channels
Distribution channels refer to the various intermediaries through which goods/services
move from the manufacturer to the end customer

Common distribution channels

The three different types of distribution channels businesses can use to move products
from the manufacturer to the end consumer

Four stage distribution channel

A traditional channel consists of four stages: producer, wholesaler, retailer, and
consumer
This channel is commonly used for products such as groceries, clothing, and electronics
E.g. The Coca-Cola Company produces the soft drink and then sells it to a
wholesaler, who in turn sells it to a retailer
The retailer then sells the soft drink to the end customer

Three stage distribution channel

The three stage distribution channel eliminates the wholesaler stage, with the producer
selling directly to the retailer
This channel is often used for products with high demand or where the cost of
distribution is high
This channel is often used for products with high profit margins, where the manufacturer
can afford to sell directly to the retailer and still make a profit
Eg Toshiba produces laptops and sells them directly to retailers like Currys, who
then sell them to the end customer

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Two stage distribution channel
The two stage distribution channel eliminates both the wholesaler and retailer stages, Your notes
with the manufacturer selling directly to the end consumer
This channel is commonly used for products that are sold online or through direct sales
channels
E.g. RyanAir sells its service (passenger tickets) directly to the end customer on their
website

Changes in distribution to reflect social trends

Changes in distribution have been impacted by social trends such as the growth of e-
commerce and the shift from product-based businesses to service-based
businesses
By understanding these trends, businesses can adjust their distribution strategies to
better meet the needs of their customers and stay competitive in the marketplace

The growth of e-commerce

Explanation Example

Online distribution has become Amazon is known as a third-party logistics

increasingly popular due to the provider (3PLs)
convenience and accessibility it
offers to consumers They provide businesses with the
infrastructure and online marketplace which
allows them to reach a wider audience and
Many businesses now use drop- increase sales without having to invest in their
shipping, which allows them to distribution infrastructure
sell products without holding
stock Many businesses now generate the bulk of
their sales selling on Amazon
Once the business has sold
the products, they are
shipped directly from the
producer to the customer
This reduces the cost and
complexity of distribution,
making it easier for
businesses to sell online

The shift from product-based business to service-based

business
Explanation Example

Consumers increasingly value experiences Uber delivers a taxi service

over material possessions and this shift has through a mobile app

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impacted distribution, as the delivery of The distribution involves
services is often quite different from the matching drivers with
delivery of physical products customers in real-time Your notes
Distribution for service-based businesses may
involve delivering services to customers The service is distributed
directly, such as through a mobile app or directly to the end
website consumer without the
need for wholesalers or
This requires a different set of distribution retailers
capabilities than traditional product-
based distribution With no need for
wholesalers or retailers,
business costs reduce
and profitability may
increase

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 Marketing Strategy
Your notes
The product life cycle
The product life cycle describes the different stages a product goes through from its
conception to its eventual decline in sales
There are typically five stages in the product life cycle: development, introduction,
growth, maturity, and decline

A typical product life cycle

The five stages a product goes through over its life span - from development to decline
(and ultimately withdrawal from a market)

The implications for cash flow and marketing vary at each stage of the product life cycle
Companies should tailor their marketing strategies and manage their cash flow to
ensure long-term profitability and success

The product life cycle, cash flow and marketing strategy

Stage Explanation Implication

Development The focus is on designing Cash flow is usually negative

and developing the during this stage, as the company
product is investing heavily in the product
without generating any revenue
The business usually incurs
high costs for research The marketing strategy during this
and development, market stage is focused on creating
research, and product awareness and generating
testing interest in the product

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Introduction The stage begins when the Cash flow is usually negative as
product is launched the business usually incurs high
Your notes
costs for promotion, advertising
Characterised by slow and distribution
sales growth as the
product is still new and Marketing efforts are focused on
unknown to most creating awareness and
consumers generating interest in the product

Growth The product enters this Cash flow usually turns positive
stage when sales begin to during this stage as sales revenue
increase rapidly increases and costs are spread out
over a larger volume of production
The business focus shifts
to building market share The marketing strategy is to
and increasing production differentiate the product from its
to meet the growing competitors and build brand
demand loyalty

Maturity Characterised by slowing Cash flow is usually positive

sales growth as the during this stage as sales revenue
product reaches its peak in continues to come in and costs are
terms of market reduced through economies of
penetration scale and efficient production
processes
The marketing strategy aims to
maintain market share and
increase profitability by cutting
costs and finding new markets

Decline Starts when sales begin to Cash flow usually turns negative as
decline as the product sales revenue declines and costs
becomes obsolete or is associated with the product's
replaced by newer decline increase
products
The marketing strategy may involve
The business focus shifts discontinuing the product,
to managing the product's reducing its price to clear
decline and reducing inventory, or finding new uses for
costs the product

Extension strategies to the product life cycle

Extension strategies refer to the techniques used by businesses to extend the life of a
product beyond its natural life cycle
These strategies are designed to boost sales and maintain profitability for a product
that has reached the decline stage of its life cycle
There are two types of extension strategies:

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 Product-related extension strategies
Promotion-related extension strategies Your notes
By making product and promotion-related changes businesses can continue to appeal
to customers and extend the life of their products
Product-related extension strategies
Involves changing or modifying the product to make it more appealing to customers
and extend its life cycle and can be achieved in one of three ways:
Product improvements e.g. Samsung releases new versions of its Galaxy
Smartphone every year with upgraded features and improvements to the previous
model
Line extensions e.g. Coca-Cola introduced Diet Coke and Coke Zero as line
extensions of its original Coca-Cola
Repositioning e.g. when IBM's personal computer division started losing market
share to other brands, it repositioned its products as high-end business machines
and focused on the enterprise market

Promotion-related extension strategies

Involves changing the marketing and promotion of the product to extend its life cycle
and could include one or more of the following changes:
Changes to advertising e.g Kellogg's continues to recreate adverts for its Corn
Flakes cereal which has been around since 1906
Price promotions e.g. Cyber Monday occurs on the first Monday after Thanksgiving
in the USA and electronic firms discount prices significantly to boost sales of their
products
Sales promotions e.g. many coffee shops offer a loyalty program where customers
can earn a free drink for every six consumed

Boston Matrix and the product portfolio

The Boston Matrix is a tool used by businesses to analyse their product portfolio and
make strategic decisions about each product
The matrix classifies products into four categories based on their market share and the
market growth rate
Cash Cow
Problem Child/Question Mark
Star
Dog

The Boston Matrix

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 Your notes

The classification of products in the Boston Matrix according to their market share and the
growth rate in the market as a whole

By categorising products into these categories, businesses can allocate resources

more effectively, optimising their cash flow and developing marketing strategies that
align with the product's potential

Product classification in the Boston Matrix, cash flow and

marketing strategy
Product Type Explanation Implications

Cash cow Cash cows are products They generate significant

with a high market share in positive cash flow but have low
a mature market (the growth potential
entire market is no longer
growing) The business invests minimal
resources in cash cows as they
are seen as stable sources of
income
Marketing efforts focus on
maintaining their market share
and profitability
Cash cows are valuable assets
and can be used to fund the
development of new products

Problem Problem child or question There is often a negative cash

child/Question mark products have a low flow as businesses usually
mark market share in a high- invest in problem child
growth market products to increase their
market share and turn them
These products have the into stars
potential to become stars

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 if the company invests in If the investment does not
their development result in growing the business
may discontinue the product Your notes
Marketing efforts focus on
increasing their market share
and brand recognition

Star Star products have a high They generate significant

market share in a high- positive cash flow and have the
growth market potential for continued growth
The company typically Marketing efforts focus on
invests in stars to maintain building brand recognition,
or increase their market increasing market share, and
share maintaining profitability
Stars are valuable assets and
the business should focus on
maximising their potential

Dog Dog products have a low They generate little revenue for
market share in a low- the company and have no
growth market growth potential
Businesses often move away
(divest) from these to focus on
more profitable products
Marketing efforts for dog
products are minimal or zero

Marketing strategies for different types of

markets
Marketing strategies vary depending on the type of market being targeted
Mass markets, niche markets, business-to-business markets (B2B), and business-
to-consumer (B2C) markets

Mass markets
Mass markets are characterised by large numbers of customers who have similar needs
and wants e.g. retail clothing
Mass markets focus on building brand awareness and appealing to a broad audience
Advertising campaigns are usually designed to reach as many people as possible
and use mass media such as TV, radio, and print ads
The messages are often simple and the goal is to create a strong brand identity that
resonates with a large segment of the population

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Niche markets
Niche markets are characterised by smaller groups of customers with specific needs Your notes
and want. e.g organic food stores, luxury car dealerships
Marketing strategies focus on targeting a specific segment of the population and
building relationships with them
Advertising campaigns are usually more targeted and may use social media to reach
potential customers
The messages are often more detailed and often include technical information that
is relevant to the specific needs of the target market

Business to business (B2B)

B2B marketing focuses on selling products to other businesses e.g. software
companies selling to other businesses; manufacturers selling parts to other
manufacturers
In B2B marketing, the emphasis is on building relationships with other businesses and
demonstrating how your product can help them be more successful
Advertising campaigns may include case studies that demonstrate the value of your
product/service
The messages are often more technical and may focus on features and benefits
that are relevant to other businesses

Business to consumer (B2C)

B2C marketing focuses on selling products/services directly to consumers e.g clothing
retailers
In B2C marketing the emphasis is on building brand loyalty and creating a positive
customer experience
Advertising campaigns may include social media ads or influencer marketing
campaigns that appeal to the emotions of consumers
The messages are often more emotional and may focus on the lifestyle benefits of
using the product/service

Developing customer loyalty

Developing customer loyalty helps businesses to grow and be successful in the long
term
Customer loyalty drives repeat purchases which helps the firm to reduce marketing
costs when launching new products
Three commonly used methods of building customer loyalty include providing excellent
customer service, offering loyalty cards, and offering saver schemes

Ways to develop customer loyalty

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Method Explanation Example
Your notes
Customer When customers have a positive Zappos is an online retailer that
service customer service experience, is well known for its
they are more likely to return and exceptional customer service
recommend the business to
others They offer free shipping
and returns
Their customer service
representatives are
available 24/7

Loyalty A popular way for businesses to Sephora has a loyalty program

cards encourage repeat customers called "Beauty Insider."
These cards typically offer Members earn points for
rewards or discounts for every purchase they make
frequent purchases
They can redeem those
points for beauty
products or experiences

Saver These schemes typically offer Sainsbury's offers a Christmas

schemes discounts or special pricing for saving scheme
customers who save money with
them Their discounts are then
usually between 2% and
This helps customers gradually 6%
save up some money that can be
used at periods when food bills
are usually higher e.g Christmas

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