Marketing strategy and the law Cambridge IGCSE Business Studies revision
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In plain words
Product, price, place and promotion are called the marketing mix, or the four Ps. A marketing strategy is a plan for combining all four to reach a particular group of customers.
The four must fit together. A luxury watch sold cheaply from a market stall would convince nobody.
5 things to know
- A marketing strategy is a plan to achieve a marketing objective, using a suitable marketing mix for a chosen target market.
- The elements must be consistent with each other and with the product's image: quality, price, where it is sold and how it is promoted.
- The most important element varies: price for everyday goods bought on cost, product and brand for luxuries, place for convenience goods.
- Laws protect consumers: goods must be safe, fit for their purpose and as described, and promotion must not mislead.
- For a business the laws mean spending on testing and quality, and care over what adverts claim. Breaking them brings fines, refunds and bad publicity.
Tips and tricks
- When recommending a strategy, cover all four Ps and tie each to the target market in the question.
- Legal controls are a constraint and a benefit. Customers trust businesses more when they know they are protected.
It lands in your notebook with its questions as flashcards.
Marketing strategy and the law: 5 questions and answers
These are the quiz’s questions. Do the quiz first, then come back here for the ones that got you.
The marketing mix consists of
These are the four Ps.
A company sells expensive perfume. Which marketing mix is most suitable?
Each element supports the luxury image.
Which practice would be illegal under consumer protection law?
Promotion must not mislead.
Why do legal controls on product safety raise a business's costs?
Checking and testing cost money.
What is a target market?
The marketing mix is designed around them.
Quiz
5 questions
Tap an answer and you’ll see straight away whether it’s right, and why.
Worksheet
3 questions, 8 marks. Write your answers on paper, then check them.
Marketing strategy and the law
Cambridge IGCSE Business Studies 0450 · 8 marks · papermunch.org
Name ______________________________ Date ______________
State the four elements of the marketing mix.[2]
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Product, price, place and promotion.
Explain why the elements of the marketing mix must be consistent with each other.[3]
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Customers judge a product by all of them together. A high-quality product sold at a very low price, or in the wrong kind of shop, gives a confused image, and sales will suffer.
Explain how consumer protection laws affect the way a business promotes its products.[3]
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It must not make false or misleading claims in its advertising. It has to check that what it says is true, or it could be fined and lose customers' trust.
Answers: Marketing strategy and the law
- 1. Product, price, place and promotion.
- 2. Customers judge a product by all of them together. A high-quality product sold at a very low price, or in the wrong kind of shop, gives a confused image, and sales will suffer.
- 3. It must not make false or misleading claims in its advertising. It has to check that what it says is true, or it could be fined and lose customers' trust.