AQA · GCSE · Business
Course version: 8132 · Version from Sept 2017
Price, product, promotion and place (4Ps): the nature of the product or…
Full specification wording
The elements of the marketing mix: price, product, promotion and place (4Ps): the nature of the product or service
The nature of the product or service refers to its characteristics, such as whether it is a good or a service, its features, quality, branding, and whether it is a convenience, shopping or…
Checked against the AQA 8132 specification (opens in a new tab) on .
- Point 60 of 80
- 3 key terms
Study notes
From the checked teaching notes for this specification point.
The idea
The nature of the product or service refers to its characteristics, such as whether it is a good or a service, its features, quality, branding, and whether it is a convenience, shopping or speciality product. These characteristics influence all four Ps: for example, a luxury service may use premium pricing, personalised promotion and selective distribution, while a convenience good may use competitive pricing, mass promotion and intensive distribution. Assessment requires applying this to a business scenario and justifying choices.
What earns the marks
- Defines the nature of a product or service as its key characteristics, including whether it is a good or service, its features, quality and branding.
- Explains how the nature of a product influences its price, for example premium pricing for luxury goods versus competitive pricing for convenience goods.
- Analyses how product characteristics affect product decisions, such as design, features, packaging and after-sales service.
- Explains how the nature of a product influences promotion, for example mass advertising for fast-moving consumer goods versus personal selling for specialist services.
- Analyses how product characteristics affect place, such as intensive distribution for convenience goods versus exclusive outlets for luxury products.
- Evaluates how well a firm's marketing mix matches the nature of its product or service in a given context.
Common mistakes and how to put them right
Confusing the nature of a product with its price alone.
Put it right: The nature of a product covers multiple characteristics that influence all four Ps.
Assuming all services are marketed the same way.
Put it right: Services vary widely, from hairdressing to legal advice, and their nature affects each marketing decision.
Ignoring the target market when describing product nature.
Put it right: The nature of a product should be considered in relation to the needs and wants of the intended customers.
Exam tips
- State clearly whether the product is a good or a service and give one or two key characteristics.
- Use the characteristics to justify decisions for each of the 4Ps, not just one.
- When evaluating, consider whether the marketing mix is appropriate for the product's nature and target market.
Try the lesson
The start of the The elements of the marketing mix: price, product, promotion and place (4Ps): the nature of the product or service lesson, made from checked teaching notes for this specification point.
Have a go first
A business sells a luxury perfume in a glass bottle with gold lettering. Which feature of the product's nature best explains why the business can charge a high price?
Listen
The nature of the product or service refers to its characteristics, such as whether it is a good or a service, its features, quality, branding, and whether it is a convenience, shopping or speciality product. These characteristics influence all four Ps: for example, a luxury service may use premium pricing, personalised promotion and selective distribution, while a convenience good may use competitive pricing, mass promotion and intensive distribution. Assessment requires applying this to a business scenario and justifying choices. A strong answer earns marks for these points. Defines the nature of a product or service as its key characteristics, including whether it is a good or service, its features, quality and branding. Explains how the nature of a product influences its price, for example premium pricing for luxury goods versus competitive pricing for convenience goods. Analyses how product characteristics affect product decisions, such as design, features, packaging and after-sales service. Explains how the nature of a product influences promotion, for example mass advertising for fast-moving consumer goods versus personal selling for specialist services. A common slip: Confusing the nature of a product with its price alone. Instead, the nature of a product covers multiple characteristics that influence all four Ps. Exam tip: State clearly whether the product is a good or a service and give one or two key characteristics.
See it
Key words
Say what each word means before you turn the card.
Product characteristics
Try answering aloud or in your head before turning the card.
Marketing mix
Try answering aloud or in your head before turning the card.
Target market
Try answering aloud or in your head before turning the card.
See every definition
- Product characteristics
- The key characteristics of the nature of the product or service, including whether it is a good or a service, its features, quality and branding.
- Marketing mix
- The four Ps of price, product, promotion and place, which the nature of the product or service influences.
- Target market
- The intended customers, in relation to whose needs and wants the nature of a product should be considered.
Label the diagram
Some boxes have lost their names. Pick the right name for each number.
1Box 1
2Box 2
3Box 3
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