Making Marketing Decisions

What Making Marketing Decisions covers

Making Marketing Decisions is examined in Paper 2, Building a business (Theme 2). It covers product design, life cycle and differentiation, price and pricing strategies, promotion strategies and technology, place and methods of distribution and using the marketing mix to make business decisions.

The 5 subtopics

Each one has its own page.

• Product design, life cycle and differentiationThe design mix of function, aesthetics and cost, the phases of the product life cycle, extension strategies such as new flavours, and why product differentiation matters.Open →
• Price and pricing strategiesPrice skimming, penetration, competitive, cost-plus, premium and psychological pricing, loss leaders, a worked mark-up, and how technology, competition and segments shape prices.Open →
• Promotion strategies and technologyAdvertising, sponsorship, product trials, special offers and branding, targeted online and viral advertising, e-newsletters, and matching promotion to the market segment.Open →
• Place and methods of distributionDistribution channels, retailers and e-tailers with their advantages and disadvantages, click and collect, online marketplaces, and how e-commerce has changed UK high streets.Open →
• Using the marketing mix to make business decisionsHow each element of the marketing mix affects the others, competitive advantage from product, price, promotion and place, and an integrated marketing mix for a luxury brand.Open →

What you need to know

Answer each one before you reveal it.

Take Making Marketing Decisions further

The same content, four other ways.

Commonly confused

Pairs that lose marks when they are blurred together.

• Price skimming vs Penetration pricing

  Price skimming: charging a high amount at launch then cutting it over time. Penetration pricing: charging a low amount at launch to win market share quickly.

• Maturity vs Decline

  Maturity: the life cycle phase where sales peak and level off. Decline: the life cycle phase where sales fall steadily.

• Retailer vs E-tailer

  Retailer: a business selling to consumers through physical shops. E-tailer: a business selling to consumers only through a website or app.

Questions from this topic

Each one with the model answer underneath.

1. 1

   What is the design mix?

   Model answer

   The design mix is the combination of function, aesthetics and cost that shapes a product's design. A successful design balances all three for its target market.

2. 2

   What does function mean in the design mix?

   Model answer

   Function is how well a product does the job it is designed for. Function covers reliability, ease of use and durability.

3. 3

   What does aesthetics mean in the design mix?

   Model answer

   Aesthetics is how a product appeals to the senses, such as its look, feel, taste or smell. Aesthetics matters most for fashion and luxury goods.

4. 4

   Why is cost part of the design mix?

   Model answer

   The cost of making a product must be low enough for it to sell at a profitable price. A costly design may price the product out of its target market.

5. 5

   Which element of the design mix matters most for a budget supermarket's own-brand products?

   Model answer

   Cost matters most, as the products must be cheap to make and sell. Function must still be acceptable, but aesthetics are kept simple.

6. 6

   What is the product life cycle?

   Model answer

   The product life cycle shows the stages a product passes through from launch to withdrawal. Sales and profit change at each stage.

What is inside Levo

Six ways to work the same material.

Making Marketing Decisions revision questions

What does Making Marketing Decisions cover in Edexcel GCSE Business?

5 subtopics: product design, life cycle and differentiation, price and pricing strategies, promotion strategies and technology, place and methods of distribution and using the marketing mix to make business decisions. Each one has its own page with questions and model answers.

How is Making Marketing Decisions organised?

By the Edexcel 1BS0 specification, subtopic by subtopic, so it matches the order you are taught it in.