QUESTIONS

1 a. What is Marketing Mix?

b. Explain the contribution of the marketing mix element to advertising?

2 a. What is a Market?

b. What is a target market?

c. What is Market segmentation?

d. What is Market Positioning?

ANSWERS

1 a. What is Marketing Mix?

The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand
or product in the market. A marketing mix includes multiple areas of focus as part of a
comprehensive marketing plan. The term often refers to a common classification that began as the
four Ps: product, price, placement, and promotion. Effective marketing touches on a broad range
of areas as opposed to fixating on one message.

b. Explain the contribution of the marketing mix element to advertising?

The marketing mix, often referred to as the 4 Ps (Product, Price, Place, and Promotion), plays a
crucial role in shaping and guiding advertising strategies. Each element contributes to advertising
in specific ways:

Product:
This refers to what the company is selling, including the quality, design, features, branding, and
packaging. Advertising communicates the benefits and features of the product to the target
audience. It highlights what sets the product apart from competitors, its unique selling points
(USPs), and how it meets the needs or solves the problems of consumers. Effective advertising
can enhance the product’s perceived value and build brand awareness.

Price:
This is the amount consumers are willing to pay for the product, including discount strategies,
financing options, and pricing models. Advertising communicates the product's price and any
special offers, discounts, or promotions. It positions the product in the market based on its price—
whether it’s a premium, mid-range, or budget option. Price-related advertising can attract cost-
sensitive consumers or reinforce the product’s image as a high-value or luxury item.

Place:
This refers to how the product is distributed and where it is available for purchase, including
online and physical locations.
Contribution to Advertising: Advertising informs consumers where they can find and purchase the
product. It can drive traffic to specific stores or websites and emphasize the convenience and
accessibility of the product. Place-related advertising can also highlight exclusive availability in
certain locations or through specific retailers.

Promotion:
This encompasses all the ways in which the product is promoted to the target market, including
advertising, sales promotions, public relations, and personal selling. Advertising is a major
component of the promotion element. It creates awareness, generates interest, and persuades
consumers to take action. Effective promotion strategies integrate various advertising channels
(TV, radio, online, print, etc.) to reach the target audience, maintain brand consistency, and
maximize the impact of the marketing campaign.

2 a. What is a Market?

In economics, a market is a composition of systems, institutions, procedures, social relations or

infrastructures whereby parties engage in exchange. While parties may exchange goods and
services by barter, most markets rely on sellers offering their goods or services to buyers in
exchange for money, (Wikipedia).

Market refers to a place where buyer and sellers can come in contact with each other either
directly or indirectly, so as to trade goods and services for value. The two parties engaged in an
exchange are buyer and seller. The transaction can proceed, either directly or through
intermediaries like agents or institutions.

b. What is a target market?

Investopedia defines target market as a group of people that have been identified as the most
likely potential customers for a product because of their shared characteristics, such as age,
income, and lifestyle.

A target market is a specific group of people with shared characteristics that a business markets its
products or services to. Companies use target markets to thoroughly understand their potential
customers and craft marketing strategies that help them meet their business and marketing
objectives.

Target market is the end consumer to which the company wants to sell its end products too. Target
marketing involves breaking down the entire market into various segments and planning
marketing strategies accordingly for each segment to increase the market share.

c. What is Market segmentation?

Market segmentation is the process of dividing a broad consumer or business market, normally
consisting of existing and potential customers, into sub-groups of consumers, known as segments,
based on some type of shared characteristics. In dividing or segmenting markets, researchers
typically look for common characteristics such as shared needs, common interests, similar
lifestyles or even similar demographic profiles. The overall aim of segmentation is to identify high
yield segments – that is, those segments that are likely to be the most profitable or that have
growth potential – so that these can be selected for special attention (i.e. become target markets).

d. What is Market Positioning?

Market Positioning refers to the ability to influence consumer perception regarding a brand or
product relative to competitors. The objective of market positioning is to establish the image or
identity of a brand or product so that consumers perceive it in a certain way.

For example:

 A handbag maker may position itself as a luxury status symbol

 A TV maker may position its TV as the most innovative and cutting-edge

 A fast-food restaurant chain may position itself as the provider of cheap meals