Page 166 - Cambridge IGCSE Business Studies

12 Marketing mix: product

and price

Introduction
Objectives

Over the next two chapters you are going to learn about the different parts of the
In this chapter you will
marketing mix. The marketing mix is the four key decisions that a business must
learn about:

take in order to market products effectively. These four decisions are often called the
■ the term ‘marketing mix’ Four Ps. The first two of these decisions are what product the business is producing
■ the costs and benefits of and selling and the price the business is going to charge customers who want to buy
the product. You will learn how each of these elements of the marketing mix can
developing new products
influence sales.
■ the role of packaging
■ the product life cycle
■ pricing methods
Product
■ price elasticity.
When a new product is launched onto the market, consumers may see it advertised

and buy it once. The business may also sell the product at a low price to encourage
consumers to buy. But if the product is not ‘right’, because it does not meet the
KEY TERMS
needs and expectations of customers, they will not buy it again. Successful products
Marketing mix: four marketing are bought over and over again by customers. This helps to build the brand and

decisions needed for the eff ective
develop both customer loyalty and brand loyalty.
164 marketing of a product.
Four Ps: the right product at
the right price with the right
promotion in the right place.
Product: the goods and services
produced to satisfy a customer
need or want.
Brand: a name, image or symbol
that distinguishes a product from
competitors’ products.

TOP TIP
Don’t forget that product means
goods and services.

Figure 12.1 A new product will attract interest, but
developing customer loyalty is not so easy