Level 1

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90840: Apply the marketing mix to a new or existing product

Updated December 2014. This clarification has been updated to address new issues that have arisen from moderation.

This standard requires students to select a product and apply the marketing mix to that specific product. Areas that students should focus on in relation to their chosen product are:

  • identifying the product’s features, function, target market, unique selling point and the stage of the product life cycle the product is currently at
  • stating the current price of the product and identifying what pricing strategy is used. For example, competitive pricing, psychological pricing, premium pricing, etc.
  • identifying how the product is being distributed, for example, retail shops or a school market day, as well as the channel of distribution that is being used for each of these methods
  • identifying a range of promotional strategies that are currently being used to promote the product.

An Achieved grade requires a definition, description, identification or an outline of the marketing mix for the chosen product. All four points mentioned above must be applied in context. Some relevant business knowledge must be stated, for example, ‘Product X is sold online using a direct channel of distribution’.

At Merit, the analysis of the above four points must be applied in detail. ‘Explain’ indicates that reasons must be given for statements made, for example, ‘Product X is sold online using a direct channel of distribution because this is convenient for the target market who use technology frequently and wish to be able to purchase 24 hours a day from any location’.

At Excellence, the analysis of the 4Ps must be comprehensively applied. ‘Fully explain’ requires higher level reasons, including how the strategy impacts on the business. An example is: ‘Product X is sold online using a direct channel of distribution because this is convenient for their target market and allows Business X to access customers across NZ without incurring high overheads’.

Excellence students will also integrate business knowledge throughout their assignment tying together sections from different areas. An Excellence response would clearly demonstrate that there are linkages (in theory) and that these also are demonstrated in practice. At this level, work will be free of factual errors.

At Achieved, students must show evidence of applying appropriate skills. They must consistently apply these skills for Merit, and consistently apply with a high level of accuracy for Excellence. Examples of how relevant skills could be applied include:

  • a table or graph comparing prices with those of direct competitors to help identify the chosen pricing strategy
  • a diagram showing what channels of distribution are being used to distribute this product to the consumer
  • a product life cycle diagram identifying what stage the chosen product is currently at.
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