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 wants 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
maximise its 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
For example, Fentimans ginger beer is relatively affordable and is packaged in
eye-catching bottles, and the product itself is of very good quality
Other manufacturers may focus on one aspect more than the others
For example, Asda's 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
For example, a multi-plug adaptor that breaks after one month of use will not be
seen by customers to fulfil its function

Aesthetics
Aesthetics refer 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
For example, 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
For example, Asda's 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 people's attitudes, behaviours and lifestyles
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 that 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, reuse and recycling
Companies may choose to design products that use fewer
materials, are more durable and can be easily disassembled for
recycling or repair
For example, in October 2020, Superdry announced that all
of its 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 the
ethical sourcing exploitation of workers or environmental damage
Companies may change their product design mix to incorporate
sustainable materials and production processes
For example, Tony's Chocolonely is committed to producing
chocolate that is made from cocoa farmed with 100%
slave-free (and child-free) 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

its target market

Each method has advantages and disadvantages associated with its 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 Can reach large Can be expensive

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

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radio, print media increase brand difficult to measure
(magazines) and online awareness Many customers tune
advertising Can also be used to out or ignore ads Your notes
create a specific
brand image or
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 emails, personalise their
text messages, social media message to Can also be costly,
or posts 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
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, discount coupons, product who may not be loyal
loyalty cards and rebates to the brand
(customers have to mail in to Can encourage
receive money back) impulse purchases May reduce the sales
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 staff
interacts with potential their customers and
customers one on one, understand their The impact of personal
either in person or through specific needs selling can be limited,
digital communication as it is difficult to scale
channels Enables businesses to large audiences
to provide

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 personalised
advice and
guidance to Your notes
customers

Sponsorship Can help to build Can be expensive,

brand awareness especially for high-
An agreement in which a and credibility profile events or
company provides financial properties
or other support to an event, Can create
team or organisation 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 (e.g. Arsenal's objectives, such as experiences a scandal
Emirates Stadium) entering new or controversy (e.g. In
markets or reaching 2022, Kanye West was
new customers dropped by Adidas
after his antisemitic
outbursts)

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

business's consuming, and it is
Building relationships with reputation and difficult to measure the
the public and managing credibility direct impact of PR
reputation activities on profits
This can lead to
Public relations activities can increased
include media relations, customer loyalty
crisis management and and sales
community outreach
Can be cost-
For example, in 2018, KFC in effective when
Ireland ran out of chicken compared to
due to some supply chain advertising or
issues and ran a brilliant PR personal selling
strategy in which it
rearranged the letters in its
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, May require significant
such as social media, search Can provide real- investment in
engine optimisation or time engagement technology or data
mobile apps such as and feedback from infrastructure
Instagram and Twitter customers

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 Can be used for building May be subject to data
brand awareness, privacy regulations or
generating leads or driving security breaches Your notes
sales
May not be effective
for reaching older or
less digitally savvy
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 that 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 such as Nestlé, Nike and Apple

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Advantages and disadvantages of corporate branding
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)
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
For example, KitKat, Coca-Cola and the 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. Coca-Cola and Coke Zero) each product from scratch
Can help 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. which can affect customer
Dyson 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, such as 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

They can help retailers differentiate Own-brand products may have a

themselves from their competitors by lower perceived quality than branded
offering unique products products, which can affect customer
loyalty and trust
They allow retailers to offer products at
a lower cost than branded products,
which can help to increase sales and
profitability
They can help 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 successfully

ads that resonate with their built its brand through
target audience, raise brand advertising
awareness and communicate
their value proposition Iconic ads over the years
have become synonymous
With the right advertising with the brand
strategy, brands create a strong
emotional connection with their For example, the "Share a
audience and inspire brand Coke" campaign
loyalty encouraged 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 such
following and create a as Instagram, and it
community around their brand engages 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 that respond quickly to changing social trends can better meet the needs of
customers
Being able to quickly adapt branding and promotion strategies helps maximise
communication opportunities with customers, which can develop brand loyalty and
increase profits
Three current social trends businesses are aware of and adapting to are viral marketing,
the use of social media and emotional branding

Viral marketing
This is a strategy in which businesses use online platforms to promote products by
creating content at specific times, which can easily be shared and commented on
For example, 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
For example, Instagram has been a popular platform for businesses to promote
products through influencer partnerships
More recently, many businesses have shifted focus to promoting their brands
through short-form video content on platforms such as TikTok

Emotional branding
Emotional branding is a strategy in which companies build strong emotional
connections with customers by appealing to their values, beliefs and emotions
For example, brands such as Patagonia and TOMS have built entire brand identities
around a strong commitment 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 + ( Markup percentage × 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 it has 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, including the UK, 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
For example, a business may set its prices at £9.99 instead of £10, as
customers perceive the former as 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

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 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 Your notes

Number of USPs/amount Price elasticity of demand Level of competition

of differentiation

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
For example, if a business
For example, Dyson is in a highly competitive For example, the
vacuum cleaners have market with many budget airline industry
unique features that substitutes, lowering is highly competitive,
allow the company to prices will and airlines keep their
charge a premium increase revenue prices low to increase
price 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 cost of production
can command higher to attract customers and and provide a
prices build market share reasonable profit
margin
For example, Nike's In the growth stage,
strong brand allows it prices can increase as For example, a
to charge premium demand for the product restaurant needs to
prices for its athletic increases consider the cost of
shoes and apparel ingredients, labour,
In the maturity stage, rent and other
prices may need to be expenses when
lowered again setting menu prices

Examiner Tips and Tricks

Exam questions frequently ask you to be able to justify the most appropriate pricing
strategy for a good or service.

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 When studying the data provided, consider the points above and then make a
recommendation.
Your notes
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.

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.
[Link])
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
For example, The Coca-Cola Company produces the soft drink and then sells it to a
wholesaler, which 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
For example, Toshiba produces laptops and sells them directly to retailers such as
Currys, which 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
For example, Ryanair sells its service (passenger tickets) directly to the end
customer on its 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
convenience and accessibility it
offers to consumers It provides businesses with the
infrastructure and online marketplace that
Many businesses now use drop allows them to reach a wider audience and
shipping, which allows them to increase sales without having to invest in
sell products without holding their distribution infrastructure
stock
Many businesses now generate the bulk of
Once the business has sold their sales by selling on Amazon
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 businesses to service-based

businesses
Explanation Example

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Consumers increasingly value experiences Uber delivers a taxi service
over material possessions, and this shift has through a mobile app
Your notes
impacted distribution, as the delivery of
services is often quite different from the The distribution involves
delivery of physical products matching drivers with
customers in real time
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 are
reduced, 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
It is 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 This is characterised by Cash flow is usually positive

slowing sales growth as during this stage, as sales revenue
the product reaches its continues to come in and costs are
peak in 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 This starts when sales Cash flow usually turns negative,
begin to decline as the as sales revenue declines and
product becomes costs associated with the
obsolete or is replaced by product's decline increase
newer 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

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 These strategies are designed to boost sales and maintain profitability for a product
that has reached the decline stage of its life cycle
Your notes
There are two types of extension strategies:
Product-related extension strategies
Promotion-related extension strategies
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, which 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 US, and electronics firms discount prices significantly to boost sales of their
products)
Sales promotions (e.g. many coffee shops offer a loyalty program in which
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

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 Dog
The Boston Matrix 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 Explanation Implications
type

Cash cow Cash cows are products with They generate significant positive
a high market share in a cash flow but have low growth
mature market (the entire potential
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

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 Problem Problem child or question There is often a negative cash
child / mark products have a low flow, as businesses usually invest
Your notes
question market share in a high- in problem child products to
mark growth market increase their market share and
turn them into stars
These products have the
potential to become stars if If the investment does not result in
the company invests in their growth, the business may
development discontinue the product
Marketing efforts focus on
increasing market share and
brand recognition

Star Star products have a high They generate significant positive

market share in a high- cash flow and have the potential
growth market for continued growth
The company typically Marketing efforts focus on
invests in stars to maintain or building brand recognition,
increase its market share increasing market share and
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
growth market 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 (B2B) markets 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)

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 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 Your notes
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
Niche markets
Niche markets are characterised by smaller groups of customers with specific needs
and wants (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 include technical information that is
relevant to the specific needs of the target market

Business-to-business
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 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

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 Customer loyalty drives repeat purchases, which helps the firm to reduce marketing
costs when launching new products
Your notes
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
Method Explanation Example

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 It offers free shipping and
returns
Its customer service
representatives are
available 24/7

Loyalty A popular way for businesses to Sephora has a loyalty

cards encourage repeat customers programme called "Beauty
Insider"
These cards typically offer
rewards or discounts for Members earn points for
frequent purchases every purchase they make
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 savings scheme
customers who save money with
them Its 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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