The 4P's
What are the 4Ps of marketing?
Product, Price, Promotion, Place
Why would a business use competitive pricing?
To attract price-conscious customers by matching or beating rivals.
What distribution strategy is used when a luxury product is sold in limited, exclusive stores?
Exclusive distribution
What is the goal of promotion in marketing?
To increase awareness and persuade customers to buy.
What does USP stand for?
Unique Selling Proposition
Which P involves how the product gets into customers' hands?
What is cost-plus pricing, and how does it work?
It’s when a business adds a percentage (markup) to the cost of making the product to set the final price.
What does intensive distribution mean?
Making the product available in as many outlets as possible.
What is advertising?
A paid form of promotion that uses media (like TV, social media, print) to inform or persuade customers about a product or service.
Explain how a slogan can support a brand’s message.
It communicates a key idea or value that sticks in customers’ minds.
What are two ways a business could adjust the “Product” element for a younger audience?
Change design, packaging, or features to appeal to younger tastes.
Why is it important for a business to research its competitors before setting a price or launching a product?
Understanding competitors helps a business set a competitive price, find gaps in the market, and create a unique selling proposition to stand out.
Why might a brand choose selective distribution instead of intensive?
To control brand image and customer experience
What is a target market, and why is it important for a business to identify one before launching a product?
A target market is a specific group of customers a business aims to sell to. Knowing your target market helps tailor the product, pricing, promotion, and placement to match customer needs and preferences.
What elements make up a brand? Name at least two.
Brand name, logo, slogan, colour scheme, tone of voice, customer experience
What are two things a business must consider when deciding on a “Price”?
Competitor prices, costs, target audience willingness to pay.
When the PlayStation 5 was first released, it was sold at a high price, then gradually became more affordable. What pricing strategy is this, and why did Sony use it?
It’s called price skimming. Sony used it to make the most profit from early adopters who were willing to pay more for the newest technology. Over time, the price was lowered to attract more budget-conscious customers.
A snack company wants to be sold in every supermarket and petrol station. What’s their strategy called and why is it effective?
Intensive – maximises visibility and convenience
How can celebrity endorsements influence customers to buy a product?
They build trust, grab attention, and make the product seem popular or desirable.
Name two ways branding helps a business compete in a crowded market.
Builds loyalty, creates recognition, supports premium pricing
Explain how a business could use all 4 Ps to successfully launch a new product.
Create a product with unique features, price it competitively, sell it online and in stores, promote on TikTok and TV.
Explain the difference between penetration pricing and skimming pricing.
Penetration: Low price to enter market (e.g. new streaming service); Skimming: High price at launch then lowered (e.g. PlayStation 5).
Compare exclusive and intensive distribution. Which is better for premium products, and why?
Exclusive – maintains luxury image, higher control, limited availability builds demand
Explain how a promotional campaign on TikTok could help launch a product aimed at teenagers. (Give 2 reasons)
TikTok is where teenagers spend a lot of their time, so promoting a product there reaches the right audience quickly. Using trends, hashtags, and influencers makes the product feel exciting and popular, which can increase interest and encourage teens to try it.
A business has a great USP but weak branding. What might go wrong, and how can it be fixed?
Customers may not remember or trust it – fix with strong visual identity, consistent messaging, and customer experience