Key Idea: In 4.5, IB wants you to understand the marketing mix and how businesses use product, price, place and promotion — plus people, process and physical evidence for services. This topic is about choosing the right combination of marketing decisions.
📦 Product, price, place: **Product life cycle —** introduction, growth, maturity, decline. **Extension strategies —** keep products selling longer. **Pricing strategies —** penetration, skimming, competitive, premium, cost-plus. **Direct distribution —** more control and higher margin.
📢 Promotion: **Promotion mix —** advertising, sales promotion, PR, personal selling, direct and digital marketing. **ATL —** broad mass promotion. **BTL —** targeted promotion. **TTL —** integrated use of both.
🔄 Adapting the mix: **Good adaptation —** change product, price or place when market changes. **Good adaptation —** link different Ps together. **Good adaptation —** adjust for new countries or new segments.
⚠️ Common traps: **Common mistake —** discussing one P only. **Common mistake —** choosing a price strategy without context. **Common mistake —** forgetting the extra 3 Ps for services.
In exam answers, always explain why a specific marketing mix choice suits the business — not just what the choice is.
If the case business is a service, you should usually mention people, process and physical evidence.
If a product is in maturity or decline, think about extension strategies such as redesign, new promotion, new packaging or a new target market.
Example: A strong answer: Penetration pricing may suit the business because it wants to enter a competitive market quickly, attract customers away from rivals and build market share fast.
Important: Common triggers: explain a pricing strategy, analyse promotion methods, discuss product life cycle, compare direct and indirect distribution, apply the 7 Ps.
- Identify which P the question is really about
- Use the correct marketing term
- Explain the choice clearly
- Apply it to the business or product
- Link it to customer response, sales, brand or profit