1. The marketing mix and consumer decisions
The marketing mix is price, product, promotion and place. Each element can influence whether a consumer buys.
A low price may attract customers. Promotion makes potential customers aware of the product. The channel of distribution decides where and how customers can buy it.
The mix has four elements. Location is not one of them, and neither is market research.
Examiner insight
Worked example 14 marks
Briar Lane Bakery is a small bakery that has just started selling a new range of gluten-free cakes in its home town. Explain one way an element of the marketing mix could influence customers to buy the new cakes.
- 1
Knowledge: promotion makes potential customers aware of a product [1]. [1]
- 2
Application: local people do not yet know that Briar Lane sells gluten-free cakes [1]. [1]
- 3
Analysis: once they know, customers who need gluten-free food try the cakes [1]. [1]
- 4
Analysis: trial purchases raise the bakery's sales [1]. [1]