OxfordAQA A Level Business: Marketing — Revision Notes

Condensed for the final weeks. For the full explanation, use the Marketing study guide.

These notes primarily follow 9625 (the code current students sit). 9725 genuinely changes marketing content – most importantly the marketing mix shrinks from 7Ps to 4Ps – flagged inline below. Check which code applies to you.

Marketing objectives and plans (3.1.2.1)

Objectives include sales volume/value, market share, customer retention, repeat sales. A marketing plan covers objectives, strategy, tactics and budget. Internal/external influences: resources, technology (digital marketing, social media, dynamic pricing, e-commerce, m-commerce), ethics, market conditions.

Marketing data (3.1.2.2)

Primary research (data collected first-hand) vs secondary research (existing data). Sampling methods: random, stratified, quota. Choosing a method depends on cost, time, reliability. Includes market mapping, sales forecasts, and interpreting data (correlation, confidence levels/intervals, big data/data mining).

Segmentation, targeting, positioning (3.1.2.3)

A connected three-step process, not separate topics:

1. Segment — divide the market (demographic, geographic, income, behavioural, psychographic).
2. Target — choose which segment(s) to serve (niche vs mass marketing).
3. Position — establish the product’s place relative to competitors for that segment.

Exam questions typically expect all three steps applied to one scenario.

The marketing mix (3.1.2.4)

Under 9625, the mix has 7 elements. Beyond the classic 4Ps (product, price, promotion, place), OxfordAQA’s specification explicitly extends the mix with three more, and expects application in e-commerce and international contexts, not just domestic examples. Under 9725, the mix is simplified back to the classic 4Ps — people, process and physical environment (and the Boston Matrix) are dropped from this first-year section.

• Product — new product development, product life cycle and extension strategies, the Boston Matrix (9625 first-year only; moves to A2 under 9725), branding.
• Price — influences on price, strategies (skimming, penetration, discrimination), price elasticity of demand.
• Promotion — advertising, sales promotions, sales force, PR, exhibitions.
• Place/distribution — including online and multi-channel distribution.
• People (9625 only) — staff delivering a service directly shape the customer’s experience of it.
• Process (9625 only) — the systems/procedures through which a good or service is delivered.
• Physical environment (9625 only) — the tangible setting of a purchase (store layout, website design, packaging), which shapes perceived quality.

Worked example: price elasticity of demand and revenue

A product’s PED is calculated at −0.4. What does a price increase do to revenue?

PED = -0.4 -> demand is PRICE INELASTIC (magnitude < 1)
Implication: quantity demanded falls proportionally LESS than the
             price rise, so total revenue (price x quantity) RISES
Caution:     PED is not fixed -- it can shift as competitors respond
             or substitutes emerge, so don't treat one PED figure as
             permanent for long-term pricing decisions

The PED-to-revenue link, not just stating elastic/inelastic, is what most exam questions actually test.

Worked example: marketing objective calculations

The specification requires calculations for named marketing objectives, not just definitions:

Market share       = (business sales / total market sales) x 100
                      e.g. $2.4m sales in a $12m market = 20%

Customer retention = (customers at end - new customers gained) /
  rate                customers at start x 100
                      e.g. start 800, gain 150, end 900
                      = (900-150)/800 x 100 = 93.75%

Sales per employee = total sales revenue / number of employees
                      e.g. $1.5m / 25 employees = $60,000

Sales per store     = total sales revenue / number of stores
                      e.g. $3m / 12 stores = $250,000

Sales per product/region use the same logic (total sales ÷ relevant count). Examiners often want the figure interpreted, not just calculated – e.g. a falling retention rate flags a problem even while total sales volume rises.

Worked example: applying STP to a scenario

A business selling premium organic skincare is deciding how to enter a new international market.

Segment:   psychographic (health-conscious, higher-income consumers
           who value sustainability) combined with geographic
           (urban areas with established organic retail channels)
Target:    a niche strategy -- a smaller, well-defined segment
           willing to pay a premium, rather than mass marketing to
           the whole market
Position:  positioned above mainstream skincare brands on quality
           and ethical sourcing, communicated through packaging,
           pricing and distribution channel choice (e.g. specialist
           retailers rather than mass-market supermarkets)

Notice how the positioning choice (premium, specialist channels) follows logically from the targeting choice (niche, premium segment) which itself follows from the segmentation variables identified first – this chain of reasoning, not just naming each step, is what a strong STP answer demonstrates.

Matching research method to situation

A business choosing between primary and secondary research, and between sampling methods, should weigh:

Cost:        secondary research is usually cheaper (data already
             exists); primary research costs more but is tailored
             to the exact question being asked
Time:        secondary research is faster to access; primary
             research (surveys, interviews, focus groups) takes
             longer to design and run
Reliability: depends on sample size and design, not simply on
             primary vs secondary -- a small or biased primary
             survey can be less reliable than a well-constructed
             secondary dataset (e.g. official statistics). Primary
             data is more directly relevant to the exact question,
             which is a separate consideration from reliability

A stratified sample (dividing the population into subgroups and sampling proportionally from each) is generally more representative than a simple random sample when a population has known, relevant subgroups – for example, sampling customers proportionally by age group when age is known to affect buying behaviour.

Key terms

Market segmentation — dividing a market into groups sharing similar characteristics. Targeting — choosing which segment(s) to serve. Positioning — establishing a product’s place relative to competitors for the chosen segment. Price elasticity of demand (PED) — the responsiveness of quantity demanded to a change in price. Boston Matrix — a tool classifying products by market growth and market share (cash cows, stars, dogs, problem children).

Common mistakes

• Describing the marketing mix using only the classic 4Ps, omitting the specification’s extended elements.
• Confusing segmentation (dividing the market) with targeting (choosing a group to serve).
• Treating research methods as interchangeable rather than matching a method to cost, time and reliability.
• Quoting a product life-cycle stage without linking it to a strategy (e.g. an extension strategy at maturity).

Quick self-test

1. Name the three connected steps of segmentation, targeting and positioning.
2. List all 7Ps of the marketing mix under 9625 (and know 9725 uses only 4Ps).
3. A product has PED = −0.4. Will a price rise increase or decrease total revenue?
4. Name the three sampling methods this specification includes.
5. What three factors influence choice of research method?

Answers: 1. Segment, target, position. 2. Under 9625: product, price, promotion, place, people, process, physical environment (9725 uses only the 4Ps: product, price, promotion, place). 3. Increase — inelastic demand means quantity falls proportionally less than price rises. 4. Random, stratified, quota. 5. Cost, time, reliability.

How this connects forward

Topic 1 established why a business exists and who it is accountable to; Marketing turns to how it competes for customers, and the STP-plus-mix framework built here recurs across the rest of the AS topics (Operations, Human Resources, Finance) whenever a question asks how a business should respond to a market opportunity or threat. Treat the segmentation-targeting-positioning-mix sequence as a reusable analytical tool, not content specific to Topic 2 alone.

Related resources

• Marketing study guide
• Marketing practice questions

Official syllabus

OxfordAQA International AS and A-level Business (9625) specification, version 3.1, section 3.1.2 Marketing — oxfordaqa.com. (The v1 PDF previously linked here is an archived, superseded version on the board’s former domain.)