Marketing — AQA GCSE Business
Marketing is about identifying and satisfying customer needs profitably, using market research and the marketing mix.
Market research
Market research gathers information about customers and competitors to reduce risk and inform decisions:
- Primary research — collected first-hand (surveys, interviews, focus groups). Specific but costly and time-consuming.
- Secondary research — existing data (government statistics, reports, internet). Cheaper and quicker but less specific.
- Data can be quantitative (numbers) or qualitative (opinions).
Market segmentation divides customers into groups (by age, gender, income, location, lifestyle) so products can be targeted.
The marketing mix (the 4 Ps)
- Product — designing goods/services to meet customer needs; the product life cycle (introduction, growth, maturity, decline) and extension strategies; the Boston Matrix.
- Price — pricing strategies such as cost-plus, competitive, penetration, skimming, price discrimination and loss leaders. Price depends on costs, competition and demand.
- Promotion — raising awareness and persuading customers: advertising, sales promotions, sponsorship, social media and public relations.
- Place — how the product reaches the customer: retailers, wholesalers, e-commerce and distribution channels.
The four Ps must work together as an integrated mix, suited to the product and market.
Using the mix to compete
A strong, well-balanced marketing mix helps a business gain a competitive advantage and respond to changing customer needs and technology (e.g. digital marketing).
Exam tips
- Compare primary vs secondary and quantitative vs qualitative research.
- Explain market segmentation with examples.
- Learn the 4 Ps and several pricing and promotion strategies.
- Use the product life cycle and extension strategies in answers.