○

● Branding:
○ Brand- a name, symbol, sign or design that differentiates a firms product from
those of its competitors
○ Branding- the process of distinguishing one firms product from another. Can add
great value to a product and have a strong influence on how consumers view or
perceive a product
○ Aspects of branding:
■ Brand awareness:
● Brand awareness- ability of consumers to recognise the
existence and availability of a firms good or service
● Brand awareness is crucial for consumers to identify and know
about a company's product or service
● Establishing brand awareness is key for effective product
promotion
● It becomes particularly important in competitive markets where
products are similar- strong brand awareness leads to increased
sales
● Higher brand awareness correlates with increased sales and
signals market share dominance to competitors
■ Brand development:
● Brand development involves strategies to enhance and strengthen
a products image in the market
● Aims to increase brand awareness through improving the
recognition and impact of its name, symbol or sign, ultimately
driving higher sales and market share
● Businesses often invest in promotional campaigns like sales
promotions and advertising to persuade consumers to buy their
products and further develop their brands
■ Brand loyalty:
● Brand loyalty- when consumers become committed to a firms
brand and are willing to make repeat purchases over time
● Brand loyalty is when consumers consistently choose a specific
brand over others even at higher prices due to their preference
and perceived added value
 ● Successful businesses employ marketing strategies to nurture
brand loyalty including cultivating brand ambassadors who
promote the brand through positive word of mouth
■ Brand value:
● Brand value- how much a brand is worth in terms of its
reputation, potential income and market value
● Brand value indicates the extra revenue a business can earn from
its products due to its brand name
● Brands with high value are considered valuable assets because
consumers are willing to pay more for them
● Brand values represent a brands personality and serve as a
distinguishing factor that influences consumer choices, making a
business appear unique and superior to competitors
● Emphasising brand values is essential for successful branding,
strengthening a firms identity and market position
○ Importance of branding:
■ Branding is crucial for businesses of all sizes despite the initial investment
required
■ Start ups rely on branding to establish a clear image that resonates with
customers and meets market expectations
■ Established brands can command premium pricing due to their reputation
for quality, ensuring consistent sales and high profit margins
■ Presentation, including colour choices significantly impacts consumer
perceptions and public reception of products and services
■ Branding provides legal protection by distinguishing products and
preventing copying, granting businesses ownership over unique features
■ Effective branding fosters personal identification and emotion connections
with consumers, influencing repeat purchases and positive responses
based on targeted messaging
● Price:
○ Price is a crucial element of the marketing mix as it directly contributes to
revenue generation
○ Unlike other elements like product, promotion and place, price is associated with
revenue rather than costs
○ Price represents the monetary value customers pay for goods or services
○ Setting effective pricing strategies is essential for businesses to achieve their
marketing goals
○ Businesses must establish suitable pricing strategies for both new and existing
products to meet their marketing objectives
○ Cost plus pricing:
■ Cost plus pricing- refers to adding a mark up to the average cost of
producing a product. The mark up is a percentage of the profit a firm
wishes to gain for every product that it sells
 ■
■ Advantages:
● It is a simple and quick method of calculating the selling price of a
product
● It is a good way to ensure that a business covers its costs and
makes a profit
■ Disadvantages:
● It fails to consider market needs or customer value when setting
prices
● Since competitors prices are not considered, a firm could lose
sales if it sets a selling price that is higher than competitors
○ Penetration pricing:
■ Penetration pricing- setting a low initial price for a product with the aim
of attracting a large number of customers quickly and gaining a high
market share
■ Could be used by businesses introducing a new product to an existing
market or entering new markets with existing products
■ As the firm gains market share, it can slowly increase its prices
■ Advantages:
● As the prices are low, consumers are encouraged to buy the
products. This leads to high sales value and market share for the
business
● High sales volume can lead to decreases in the costs of
production and increases stock turnover
■ Disadvantages:
● Gaining a high sales volume does not necessarily mean achieving
high profits, especially where the prices are too low
● Only suitable in markets that are very price sensitive. As
businesses increase their prices over time, they risk losing
potential customers who may seek lower priced products from
rival firms
○ The loss leader:
■ Loss leader- charging a low price for a product, usually below its average
costs, to attract consumers to buy other high priced products
■ Aim is to attract many customers
■ Advantages:
 ● Businesses selling a large number of frequently purchased
products may attract many customers and benefit from high
overall profits
● Businesses may use loss leaders as a promotional strategy to
encourage consumers to switch to their brand instead of buying
the competitors brands
■ Disadvantages:
● Firms using this strategy may be accused by competitors of
undercutting them by using unfair business practices
○ Predatory pricing:
■ Predatory pricing- when a firm deliberately sets a very low price on its
good or service with the aim of driving its competitors out of the market
■ This strategy restricts new competitors from entering the market and
hence acts as a barrier to entry
■ After a certain period of time when there is no competition left in the
market, the firm increases its prices and recoups its profits
■ Advantages:
● The firm gains a dominant position in the market using this
strategy
● Competition is minimised, as financially weaker competitors that
are unable to bear the loss will be driven out of the market
■ Disadvantages:
● Predatory pricing is a form of anti-competitive behaviour and is
illegal in many countries because it is used to restrict competition
● This strategy may work in the short term but it will be difficult to
sustain in the long term as new competitors may enter the market
○ Premium pricing:
■ Premium pricing- involves setting a higher price for a product compared
to competitors products to convey superior quality
■ This strategy aims to create a perception of higher value and exclusivity
among customers
■ Customers are expected to choose the premium priced product based on
the belief that it is of better quality
■ Premium pricing is also referred to as image pricing or prestige pricing
■ It contrasts with price skimming, where high initial price is set and is
gradually reduced
■ In premium pricing, the high price is sustained over time due to the
products perceived high quality and value
■ Advantages:
● As customers are convinced of the high quality of the product,
they do not try to buy it for less. This leaves the firm to concentrate
on improving the products quality or features without worrying
about consumer purchases
 ● A high price on a product can increase the brand value of a firm.
The product then becomes exclusive, where not everyone is able
to afford it. Loyal customers continue to enjoy and buy the
product, further increasing the brand value
■ Disadvantages:
● The firm misses out on price conscious consumers who find the
price too high
● High marketing costs are incurred as a firm will need to create
brand awareness of its product to convince customers that its high
price equates to a high quality product
○ Dynamic pricing:
■ Dynamic pricing- where firms charge different prices for their products
depending on which customers are buying them or when the products will
sell
■ Prices are adjusted based on specific customer preferences and market
conditions
■ Factors considered include demand, supply, competition and other real
time market dynamics
■ Prices are continuously updated to reflect changes in demand and supply
■ Advantages:
● There is the potential high sales and profits, as products prices
can be increased when demand rises
● A firm can beat its competition by easily adjusting to customer
preferences and providing a better experience at a cheaper price
compared to competition
■ Disadvantages:
● Can lead to customer dissatisfaction as some customers end up
paying a higher price for the same product. Those who pay a
higher price tend to become more hostile towards the firm,
reducing its brand image while those who paid a lower price may
become loyal to the firms brand
● It could lead to the loss of sales if customers are knowledgeable
about the prices of products in the market. If a customer comes
across the same product which is priced significantly lower by
another firm, they may opt to buy the lower-priced product from
the competitor
○ Competitive pricing:
■ Competitive pricing- when a firm sets the price of its product relative to
the competitors prices
■ Is a market orientated strategy
■ Prices of competitor products are used for comparison before the firm
arrives at its own pricing strategy
 ■ Requires in-depth research or detailed market analysis of competitor
behaviour to determine their product offerings, including the prices they
charge for their products
■ Advantages:
● Can prevent a firm from losing customers and market share to its
competitors. With adequate intelligence on the competition, a firm
can control the competition and respond to their every move
● As online shoppers depend on pricing before making their final
purchase, adopting a competitive pricing strategy helps to keep a
stable customer base and aids business growth
■ Disadvantages:
● Not sustainable in the long term. It may work in initial stages of
market entry, but in the long term competitors may improvise
based on pricing data and change their pricing strategy entirely to
focus on a different market segment
● A firm will find it difficult to differentiate itself from other
competitors in the market as its pricing strategy is solely based on
the co-market players. The firms brand may not stand out as
customers view the products as being similar to other competitors
products in the market
○ Contribution pricing:
■ Contribution pricing- the calculation of the variable cost of production of
a firms product, after which the products price is set
■ Contribution per unit is the difference between the variable cost per unit
and price per unit
■ Contribution, not profit goes towards covering the unpaid fixed costs of
production

■
■ Advantages:
● The contribution per unit measure is useful as it enables the firm
to know how much profit it will earn for every unit sold beyond the
point where the firm breaks even
 ● Useful strategy for a firm to use if it wants to determine the price to
charge for a special order
■ Disadvantages:
● The price set for each product using this approach may not be
competitive in the market. It is important for firms to check what
competitors are charging before finalising the price
● Allocating costs appropriately across the whole range of a firms
products can be difficult which may lead to inaccurate pricing
○ Price elasticity of demand:
■ PED- a measurement of how the quantity demanded of a good is affected
by changes in its price
■ Pricing strategy affects a firms revenue directly, emphasising the
importance of understanding PED
■ PED quantitatively gauges consumer responsiveness to price fluctuations
■ It helps firms determine if a price change will increase or decrease
revenue
𝑝𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦 𝑑𝑒𝑚𝑎𝑛𝑑𝑒𝑑
■ 𝑃𝐸𝐷 = 𝑝𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑝𝑟𝑖𝑐𝑒
■ 0-1 range:
● Classified as inelastic
● Inelastic markets show that a large change in price leads to a
relatively small change in quantity demanded
● Consumers in these markets find it challenging to switch away
from the product despite price increases
■ =1 range:
● Known as unit elastic
● Unit elastic indicates that a percentage change in price
corresponds to an equal percentage change in quantity demanded
■ 1+ range:
● Classified as elastic
● In elastic markets, a small change in price leads to a large change
in quantity demanded
● Highly elastic markets typically have many substitutes available for
the products
■ In extreme cases if PED is 0, then it is called perfectly inelastic demand
and if it is infinite it is called perfectly elastic demand
 ■
○ Price discrimination:
■ Price discrimination- charging different prices to different groups of
consumers for the same product
■ Conditions for effective price discrimination:
● Price setting ability- the firm can vary prices, especially in less
competitive markets
● Different price sensitivities (elasticities of demand) among
consumers- this measures how consumers respond to price
changes
○ If a small change in price leads to a significant change in
quantity demanded (elastic demand), consumers are price
sensitive
○ If a change in price results in a smaller change in quantity
demanded (inelastic demand), consumers are less price
sensitive
● Market separation- products must be segmented or markets
must be separated to prevent easy trading of the product
○ E.g, different prices for adult and children tickets ensures
market separation to prevent ticket trading
■ Advantage:
● Time-based price discrimination can be of benefit to either
consumers or producers. E.g, during peak times, phone
companies charge high prices and so generate higher revenues,
while during off-peak times consumers benefit from the lower
prices charged
■ Disadvantage:
 ● Businesses need to be certain about the type of elasticity of
demand of their consumers. E.g, charging higher prices in a
market with elastic demand could lead to lower sales revenue. If
firms were to charge a lower price in the elastic market, they
should ensure that the extra cost of producing and selling more
products does not exceed the extra revenue
● Promotion:
○ Promotion is concerned with communicating information about a firms products
to consumers
○ The main aim is to obtain new customers or to retain existing ones
○ Promotional activities should be communicated clearly to consumers and provide
useful information to enable them to purchase a firms product
○ Promotional objectives:
■ Creating awareness or informing consumers of a new or improved
product in the market
■ Convincing or persuading consumers to purchase a firms products
instead of its competitors products
■ Reminding consumers of the existence of a product in order to retain
existing customer or gain new customers for a product
■ Enhancing the brand image of the product as well as the corporate image
of the business
○ Above the line promotion- a paid form communication that uses independent
mass media to promote a firms products
○ Below the line promotion- a form of communication that gives a business direct
control over its promotional activities so that it is not reliant on the use of
independent media
○ Through the line promotion- a form of promotion that uses an integrated
approach of combining both above the line and below the line promotion
strategies
○ Above the line promotion:
■ This is a paid form of communication that uses independent mass media
to promote a firms product
■ It includes advertising via television, radio or newspapers to reach a wide
target audience
■ The control/responsibility for advertising is passed to another organisation
■ Advertising:
● Plays a central role globally in passing on information about a
product to a particular target audience
● Choosing the right media is important in ensuring a successful
campaign
● Types of advertising:
○ Informative advertising- the focus is to provide
information about a products features, price or other
specifications to consumers. It increases consumer
 awareness of a firms product to enable them to make
rational decisions about what to buy. It is useful when
businesses want to introduce a new product to the market.
E.g newspapers ads and government campaigns
○ Persuasive advertising- aims to convince customers to
buy one firms product instead of a competitors product. It
persuades consumers to think that they really need the
product and should buy it. It convinces consumers to make
unplanned purchases of a product known as impulse
buying. It also helps in enhancing a products brand image
○ Reassuring advertising- the focus is on existing
customers, to remind them that they made the right
purchasing decisions when they chose to buy the firms
product and they should continue to purchase
○ Below the line promotion:
■ This is when the business has direct control over its promotional activities
■ It does not depend on the use of independent media
■ Can focus the promotional activities on consumers the business knows or
on those that are interested in their products
■ Forms of below the line promotion:
● Direct marketing- this ensures that the product is aimed directly
at the consumers. It eliminates the use of intermediaries and
therefore can save the business money. E.g, direct mail (email or
through post), limitation is that most consumers regard the
information as junk and may not pay any attention to it
● Personal selling- this involves the sale of a firms product through
personal contact. It makes use of sales representatives and can
be done face to face or over the telephone. It is commonly used
when selling expensive products such as cars or technically
complex products such as specialised machinery. Customers will
need to be reassured that they are making the right purchasing
decision. They can then be given personal and individualised
attention. Major disadvantage is the cost involved, as it may be
expensive to retain a team of sales representatives for this type of
selling, especially if they are also paid commission
● Public relations- these are promotional activities aimed at
enhancing the image of the business and its products. It includes
the use of publicity or sponsorships. A business could hold a press
conference where it invites the media and provides information
about a social responsibility project it would like to launch, during
this process the business could showcase its products and gain
free publicity. Through sponsorship, a business may provide
financial support to an organisation, team or event
 ● Sales promotions- these are short term incentives provided by a
business with the aim of increasing or boosting its sales
○ Money off coupons- discounts provided to customers
when a product is purchased. Often found in newspapers,
leaflets or magazines
○ Point of sale displays- can be used for the attractive
arrangement or display of products at the location where
the business sells the items. The main objective is to draw
the attention of consumers to encourage impulse buying.
Commonly used by supermarkets that place products near
the checkouts
○ Free offers or free gifts- giving free samples such as in
supermarkets for food helps encourage sales
○ Competitions- after purchasing a product, customers can
enter a draw where they stand a chance to win a prize in
the competition. This is commonly used during festive
seasons to attract customers
○ BOGOF- a promotional strategy that can be used to attract
new customers or help in eliminating excess stock. Often
used in the maturity or saturation stages of a products life
cycle
○ Through the line promotion:
■ This form of promotion uses an integrated approach of combining both
above the line and below the line promotion strategies
■ A business aims to get a holistic view of the market and reach out to their
customers in as many ways as possible
■ Should lead to improved brand awareness and visibility
■ Drawback is the cost involved in implementing the promotional
campaigns. Hence only well established and financially secure
businesses can afford to carry out this form of promotion successfully
■ Examples:
● 360 degree marketing- this is carried out by integrating both
above and below the line activities to gain a maximum advantage
● Digital marketing- involves offering above the line marketing
benefits while using below the line communication to the
consumer. It uses a cookie-based type of advertising or targeting
method. Cookies are used to target small audiences based on
web browser behaviour. It allows businesses to display
advertisements throughout a users browsing experience once the
user has shown interest in the businesses website. Consumers
are thereby provided with highly personalised communication that
targets their needs or wants
○ This strategy has a ROI as it driven consumer preferences
○ Choosing a promotional tool:
 ■ Cost- does the marketing budget support the use of a promotional
method?
■ Legal framework- has the law been considered when deciding on the
various promotional methods to use?
■ Target market- what specific segment of the market is the product aimed
at?
■ Stage in product life cycle- which promotional strategies will be most
appropriate at the different product life cycle stages?
■ Type of product- has the promotional method considered the nature of
the product and how it would be successfully sold to customers?
■ The strategy depends on how well the marketing department in a
business can read the market and whether there is a good fit between the
consumer and the communication method used. The business will need
to be flexible in their choice and decide on the best method or
combination needed to succeed in achieving their marketing objectives
● Social media marketing:
○ Social media marketing- a marketing approach that uses social networking
websites to market a firms product
○ Incorporates technological concepts to grow businesses via various media
○ Builds relationships, drives repeat business and attracts new customers through
sharing
○ Focuses on gaining website traffic and attention through social media
○ Centres on creating engaging content that encourages sharing
○ Corporate messages spread from user to user, appearing more trustworthy
○ Promotion via word of mouth empowered by technology
○ Benefits:
■ Wide reach- internet platforms allow firms to connect with a vast
audience on a personal level, surpassing email usage in engagement
time
■ Engagement- social media turns consumers into active participants,
providing real-time feedback and insights that surpasses traditional
market research methods
■ Market information- offers valuable data on trends, feedback, public
opinion and buying habits, aiding in refining marketing strategies
■ Cost savings- more cost effective than traditional methods like television
advertising offering targeted campaigns and optimised budgets
■ Brand recognition- social media boosts brand exposure and loyalty
through rapid information sharing and consistent engagement
■ Speed- high internet speeds enable quick dissemination of
advertisements to a broad audience, aligning with the fast paced nature of
digital marketing
○ Limitations:
 ■ Accessibility problems- areas with limited internet access or poor
connectivity may miss out on social media marketing campaigns,
impacting the reach and effectiveness of promotions
■ Lurkers- a significant portion of social media users are passive
consumers, not actively engaging or sharing content. This may limit the
reach and impact of promotional efforts, especially among those not yet
fully engaged in online interactions
■ Used as a supplement- often used alongside traditional marketing
methods rather than replacing them entirely. The ease of joining social
networks results in high competition, making it challenging for businesses
to differentiate themselves solely through social media presence.
Therefore, businesses need to employ a combination of marketing
techniques to achieve optimal results and visibility
● Place:
○ Concerned with product distribution to reach consumers
○ Involves ensuring the right product is available at the right place and time
○ Critical component of marketing mix for businesses
○ Place in the marketing mix:
■ This refers not only to the location of the business, but also the location of
the customers. Businesses should develop strategies to get goods from
their location to the customers location
■ It enables businesses to come up with the best ways to distribute their
products efficiently and effectively to consumers
■ The use of intermediaries (wholesalers and retailers) helps business to
store and market their products and enhance their brand image
■ The growing use of internet makes it easier for business to reach a wide
range of consumers directly with their products
○ Importance of different types of distribution channels:
■ Channel of distribution- the path taken by a product from the producer
or manufacturer to the final consumers
■ Zero intermediary channel- this is where a product is sold directly from
the producer to the consumer
■ One intermediary channel- this involves the use of one intermediary
(retailer or agent) to sell the products from the producer to the consumer.
In most cases it is used where the retailer is operating on a large scale or
where the products are expensive
■ Two intermediaries channels- two intermediaries (wholesalers and
retailers) are used by producers to sell the product to the consumer. The
wholesalers are important for this channel and act as an additional
intermediary between the producer and the consumer. This channel is
useful when selling goods over large geographical distances
 ■

■
● People:
○ Services rely heavily on people for production and consumption
○ Customer experiences can be customised based on individual needs
○ Staff attitude, skills and appearance significantly impact customer
perceptions and preferences
○ Encouraging courteous behaviour and collecting customer feedback are
essential for assessing service effectiveness
○ People act as the transactional link between the organisation and its
customers, delivering services and collecting payments
○ Customer relationship management (CRM) and employee training are crucial for
nurturing long term employee customer relationships
○ Organisations must address cultural differences within their workforce to
foster unity and improve teamwork
○ Understanding cultural dimensions of customers helps marketers to satisfy
diverse customer needs
● Processes:
 ○ Processes encompass procedures and policies involved in delivering products to
consumers
○ Ensures products are delivered in optimal condition, maintaining quality
standards
○ Provides customers with tracking numbers for shipment monitoring and inquiries
○ Crucial for businesses to define and optimise processes for effective marketing
○ Includes processes for identifying customer needs, handling complaints and
managing orders
○ Well managed processes contribute to customer loyalty and repeat business
○ Ways to improve processes:
■ Providing easy and varied payment methods for customers, such as
paying over the internet, paying cash or paying credit
■ Providing after sales services, such as technical support that reduces the
time a customer spends solving problems when using a product
■ Informing customers how long it will take for their order, such as in a
restaurant
■ Exploring and taking measures to speed up the delivery of products to
customers
○ Ensuring the right process is in place can be time consuming, complex and
expensive, especially for start up businesses which lack the experience and
capital that larger businesses may have
● Physical evidence:
○ Physical evidence differentiates services in marketing
○ Intangible nature of services makes it challenging for consumers to evaluate
quality and value before purchase
○ Businesses struggle to position new service products due to their intangible
nature
○ Focusing on tangible aspects of service offerings enhances competitiveness
○ Physical evidence should showcase the service offering to customers before
purchase
○ Positive testimonials enhance business image and boost sales
● Appropriate marketing mixes for particular products or businesses:
○ Marketing mix meets consumer needs by producing the right product, setting the
right price, ensuring availability in the right place and using appropriate promotion
channels
○ Hiring the right people, implementing efficient procedures for product delivery and
optimising visible touch points are also crucial for business success
○ Benefits of 7P’s marketing mix model:
■ It brings together marketing ideas and concepts in a simple manner,
making it easier for a business to market its products or services
■ It assists a business in strategy formulation all the way to strategy
implementation
■ The model allows a business to vary its marketing activities based on
customer needs, resource availability and market conditions
○ Drawbacks of 7P’s marketing mix model:
■ The incorporation of three extra Ps (people, processes, physical
evidence) may be viewed as complicated by businesses used to 4P’s
(product, price, place and promotion)
■ This model misses out on addressing issues related to business
productivity
■ As product is mentioned in the singular, this could mean that businesses
that produce more than one product sell these in isolation which is not
necessarily the case
○ It is important to note that if the message of the marketing mix is not clear and
focused, a firm could risk potential loss in sales, which will affect its long term
profitability. Consumers may not identify with the product and not buy it
○ To be effective and achieve marketing objectives, a business needs to:
■ Be well coordinated so that the elements consistently complement each
other
■ Be clear and focused not abstract or ambiguous
■ Consider the market it is aiming to sell the product to
■ Look into the degree of competition that the product faces
■ Target the right consumer