Marketing — section overview
Section 3.5 covers how businesses identify and reach customers. The marketing mix (7Ps in some frameworks; AQA uses 4Ps: Product, Price, Place, Promotion) is the central concept.
What 3.5 covers
| Sub-topic | Key ideas |
|---|---|
| 3.5.1 | Identifying customers: market segmentation |
| 3.5.2 | Market research: primary vs secondary; qualitative vs quantitative |
| 3.5.3 | Product: design mix, product life cycle, extension strategies, Boston Matrix |
| 3.5.4 | Price: pricing strategies, price elasticity |
| 3.5.5 | Promotion: above/below the line, advertising, social media |
| 3.5.6 | Place: channels of distribution, e-commerce, direct vs indirect |
| 3.5.7 | The marketing mix: how the 4Ps integrate and change over time |
Market segmentation
Dividing a market into groups with similar characteristics:
- Demographic: age, gender, income, occupation
- Geographic: location, country, region
- Psychographic: lifestyle, values, attitudes
- Behavioural: usage, loyalty, benefits sought
Market research
| Type | Definition | Examples |
|---|---|---|
| Primary | New data collected first-hand | Surveys, interviews, focus groups, observation |
| Secondary | Existing data | Government statistics, company reports, internet |
| Qualitative | Non-numerical opinions | Focus groups, interviews |
| Quantitative | Numerical data | Sales data, surveys with scales |
Sampling: random, stratified, quota, convenience.
The 4Ps — marketing mix
Product: design mix (function, aesthetics, cost); product life cycle (introduction → growth → maturity → decline); extension strategies; Boston Matrix (Star, Cash Cow, Problem Child, Dog).
Price: cost-plus, penetration, price skimming, competitor-based, promotional, loss-leader.
Promotion (AIDA): Awareness → Interest → Desire → Action.
- Above the line: mass media (TV, radio, newspapers)
- Below the line: targeted (social media, direct mail, loyalty cards)
Place: where and how customers buy.
- Direct: manufacturer → consumer (e-commerce, factory shop)
- Indirect: manufacturer → retailer → consumer
- Omnichannel: selling via multiple channels simultaneously
Marketing mix integration
The 4Ps must be coherent. A luxury product (high price, premium distribution) cannot be promoted with discount vouchers — it sends conflicting signals. The mix also changes with the product life cycle:
| Stage | Typical mix |
|---|---|
| Introduction | High promotion, penetration or skimming price |
| Growth | Extend distribution, maintain price |
| Maturity | Competitive pricing, extension strategies |
| Decline | Reduce price, limited promotion, consider deletion |
Common exam mistakes in 3.5
- Penetration pricing is the same as loss-leader — no: penetration = low price to gain market share (then raise price); loss-leader = sell below cost specifically to attract customers who buy other goods
- Boston Matrix — Stars are always the best — no: Cash Cows generate most cash; Stars require heavy investment
- Secondary research is always less reliable — not true; government statistics and large research firms produce highly reliable secondary data
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