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8 Dec 2025

345

3 pages

Business A-Level Topic 1.3: Marketing and Strategy

D

Dana @danare21

Business marketing is all about creating products that people actually want to buy, pricing them cleverly, and getting... Show more

Design mix

Aesthetics
*   how products appeal to a customer (look/feel)
*   Based on the subjective judgement of customer
*   Consumers are

Design Mix and Promotional Strategies

The design mix combines three crucial elements that determine whether a product succeeds or flops. Aesthetics focus on how appealing a product looks and feels to customers - this is completely subjective and discovered through market research. Function is about whether the product actually works properly and does what it promises. Cost considers if the product can be made efficiently using the four factors of production capital, enterprise, land, and labour.

Modern businesses also prioritise resource depletion and waste minimisation through reuse, recycling, and ethical sourcing. Ethical sourcing ensures products come from facilities where workers are treated fairly, paid decent wages, and work reasonable hours whilst respecting the environment.

Promotional strategies split into two main categories. Above the line (ATL) advertising uses mass media like TV and radio - it's expensive but brilliant for building brand awareness. Below the line (BTL) advertising targets specific audiences through posters and magazines - it's cheaper and easier to measure but requires understanding customer trends.

Top Tip Strong branding adds value, reduces price sensitivity, and allows businesses to charge premium prices through advertising, sponsorship, and unique selling points.

Design mix

Aesthetics
*   how products appeal to a customer (look/feel)
*   Based on the subjective judgement of customer
*   Consumers are

Pricing Strategies and Distribution Methods

Different pricing strategies serve specific business goals. Cost-plus pricing covers production costs plus profit but ignores competitors. Skimming pricing starts high to establish premium image, whilst penetration pricing starts low to gain market share. Psychological pricing (like £1.99 instead of £2.00) tricks your brain into perceiving better value.

The best pricing strategy depends on several factors your product's unique features, price elasticity of demand, competition levels, brand strength, and cost structure. Products with few substitutes can command higher prices, whilst those with many alternatives must price competitively.

Distribution gets products from manufacturers to consumers through various channels. Food typically follows four stages (manufacturer → wholesaler → retailer → consumer), whilst electronics often skip wholesalers. Holiday companies frequently sell directly to consumers, cutting out middlemen entirely.

Social trends are reshaping distribution - online channels help niche products reach wider audiences, and many consumers prefer accessing services rather than owning products (think Spotify instead of buying CDs).

Reality Check Your purchasing decisions are constantly influenced by these pricing and distribution strategies - recognising them helps you become a smarter consumer.

Design mix

Aesthetics
*   how products appeal to a customer (look/feel)
*   Based on the subjective judgement of customer
*   Consumers are

Product Life Cycle and Marketing Strategy

Every product follows a predictable product life cycle that determines marketing approaches. During product development, cash flow is negative as businesses invest heavily in research without generating revenue. Smart companies conduct thorough market research to ensure they're creating something people actually want.

The introduction stage features low sales and high advertising costs as customers learn about new products. Advertising must be informative rather than persuasive since awareness is the primary goal. The growth phase brings rapid sales increases as demand soars and customer awareness builds.

Maturity introduces intense competition and market saturation - most potential customers have already bought the product. Businesses often reduce prices or offer promotions to maintain sales volume. Finally, the decline phase sees falling profits and sales as products become obsolete.

Extension strategies can revive declining products through updated packaging, additional features, targeting new markets, price reductions, or fresh advertising campaigns. These tactics can significantly extend a product's profitable lifespan and delay the need for costly replacements.

Marketing Reality Understanding the product life cycle helps predict when your favourite products might change, become cheaper, or disappear entirely.

We thought you’d never ask...

What is the Knowunity AI companion?

Our AI Companion is a student-focused AI tool that offers more than just answers. Built on millions of Knowunity resources, it provides relevant information, personalised study plans, quizzes, and content directly in the chat, adapting to your individual learning journey.

Where can I download the Knowunity app?

You can download the app from Google Play Store and Apple App Store.

Is Knowunity really free of charge?

That's right! Enjoy free access to study content, connect with fellow students, and get instant help – all at your fingertips.

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4.9/5

App Store

4.8/5

Google Play

The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.

Stefan S

iOS user

This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.

Samantha Klich

Android user

Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.

Anna

iOS user

Best app on earth! no words because it’s too good

Thomas R

iOS user

Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.

Basil

Android user

This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.

David K

iOS user

The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!

Sudenaz Ocak

Android user

In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.

Greenlight Bonnie

Android user

very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.

Rohan U

Android user

I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.

Xander S

iOS user

THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮

Elisha

iOS user

This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now

Paul T

iOS user

The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.

Stefan S

iOS user

This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.

Samantha Klich

Android user

Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.

Anna

iOS user

Best app on earth! no words because it’s too good

Thomas R

iOS user

Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.

Basil

Android user

This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.

David K

iOS user

The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!

Sudenaz Ocak

Android user

In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.

Greenlight Bonnie

Android user

very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.

Rohan U

Android user

I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.

Xander S

iOS user

THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮

Elisha

iOS user

This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now

Paul T

iOS user

 

Business

345

8 Dec 2025

3 pages

Business A-Level Topic 1.3: Marketing and Strategy

D

Dana

@danare21

Business marketing is all about creating products that people actually want to buy, pricing them cleverly, and getting them into customers' hands whilst making a profit. From designing the perfect product mix to understanding how pricing psychology works, these concepts... Show more

Design mix

Aesthetics
*   how products appeal to a customer (look/feel)
*   Based on the subjective judgement of customer
*   Consumers are

Sign up to see the contentIt's free!

Access to all documents

Improve your grades

Join milions of students

By signing up you accept Terms of Service and Privacy Policy

Design Mix and Promotional Strategies

The design mix combines three crucial elements that determine whether a product succeeds or flops. Aesthetics focus on how appealing a product looks and feels to customers - this is completely subjective and discovered through market research. Function is about whether the product actually works properly and does what it promises. Cost considers if the product can be made efficiently using the four factors of production: capital, enterprise, land, and labour.

Modern businesses also prioritise resource depletion and waste minimisation through reuse, recycling, and ethical sourcing. Ethical sourcing ensures products come from facilities where workers are treated fairly, paid decent wages, and work reasonable hours whilst respecting the environment.

Promotional strategies split into two main categories. Above the line (ATL) advertising uses mass media like TV and radio - it's expensive but brilliant for building brand awareness. Below the line (BTL) advertising targets specific audiences through posters and magazines - it's cheaper and easier to measure but requires understanding customer trends.

Top Tip: Strong branding adds value, reduces price sensitivity, and allows businesses to charge premium prices through advertising, sponsorship, and unique selling points.

Design mix

Aesthetics
*   how products appeal to a customer (look/feel)
*   Based on the subjective judgement of customer
*   Consumers are

Sign up to see the contentIt's free!

Access to all documents

Improve your grades

Join milions of students

By signing up you accept Terms of Service and Privacy Policy

Pricing Strategies and Distribution Methods

Different pricing strategies serve specific business goals. Cost-plus pricing covers production costs plus profit but ignores competitors. Skimming pricing starts high to establish premium image, whilst penetration pricing starts low to gain market share. Psychological pricing (like £1.99 instead of £2.00) tricks your brain into perceiving better value.

The best pricing strategy depends on several factors: your product's unique features, price elasticity of demand, competition levels, brand strength, and cost structure. Products with few substitutes can command higher prices, whilst those with many alternatives must price competitively.

Distribution gets products from manufacturers to consumers through various channels. Food typically follows four stages (manufacturer → wholesaler → retailer → consumer), whilst electronics often skip wholesalers. Holiday companies frequently sell directly to consumers, cutting out middlemen entirely.

Social trends are reshaping distribution - online channels help niche products reach wider audiences, and many consumers prefer accessing services rather than owning products (think Spotify instead of buying CDs).

Reality Check: Your purchasing decisions are constantly influenced by these pricing and distribution strategies - recognising them helps you become a smarter consumer.

Design mix

Aesthetics
*   how products appeal to a customer (look/feel)
*   Based on the subjective judgement of customer
*   Consumers are

Sign up to see the contentIt's free!

Access to all documents

Improve your grades

Join milions of students

By signing up you accept Terms of Service and Privacy Policy

Product Life Cycle and Marketing Strategy

Every product follows a predictable product life cycle that determines marketing approaches. During product development, cash flow is negative as businesses invest heavily in research without generating revenue. Smart companies conduct thorough market research to ensure they're creating something people actually want.

The introduction stage features low sales and high advertising costs as customers learn about new products. Advertising must be informative rather than persuasive since awareness is the primary goal. The growth phase brings rapid sales increases as demand soars and customer awareness builds.

Maturity introduces intense competition and market saturation - most potential customers have already bought the product. Businesses often reduce prices or offer promotions to maintain sales volume. Finally, the decline phase sees falling profits and sales as products become obsolete.

Extension strategies can revive declining products through updated packaging, additional features, targeting new markets, price reductions, or fresh advertising campaigns. These tactics can significantly extend a product's profitable lifespan and delay the need for costly replacements.

Marketing Reality: Understanding the product life cycle helps predict when your favourite products might change, become cheaper, or disappear entirely.

We thought you’d never ask...

What is the Knowunity AI companion?

Our AI Companion is a student-focused AI tool that offers more than just answers. Built on millions of Knowunity resources, it provides relevant information, personalised study plans, quizzes, and content directly in the chat, adapting to your individual learning journey.

Where can I download the Knowunity app?

You can download the app from Google Play Store and Apple App Store.

Is Knowunity really free of charge?

That's right! Enjoy free access to study content, connect with fellow students, and get instant help – all at your fingertips.

16

Smart Tools NEW

Transform this note into: ✓ 50+ Practice Questions ✓ Interactive Flashcards ✓ Full Mock Exam ✓ Essay Outlines

Mock Exam
Quiz
Flashcards
Essay

Most popular content: Product Differentiation

Most popular content in Business

Most popular content

English - inspector calls quotes and analysis

Quotes from every main character

English LiteratureEnglish Literature
10

Can't find what you're looking for? Explore other subjects.

Students love us — and so will you.

4.9/5

App Store

4.8/5

Google Play

The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.

Stefan S

iOS user

This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.

Samantha Klich

Android user

Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.

Anna

iOS user

Best app on earth! no words because it’s too good

Thomas R

iOS user

Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.

Basil

Android user

This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.

David K

iOS user

The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!

Sudenaz Ocak

Android user

In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.

Greenlight Bonnie

Android user

very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.

Rohan U

Android user

I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.

Xander S

iOS user

THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮

Elisha

iOS user

This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now

Paul T

iOS user

The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.

Stefan S

iOS user

This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.

Samantha Klich

Android user

Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.

Anna

iOS user

Best app on earth! no words because it’s too good

Thomas R

iOS user

Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.

Basil

Android user

This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.

David K

iOS user

The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!

Sudenaz Ocak

Android user

In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.

Greenlight Bonnie

Android user

very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.

Rohan U

Android user

I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.

Xander S

iOS user

THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮

Elisha

iOS user

This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now

Paul T

iOS user