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What is the Importance of Marketing Mix and why are the 4 P’s important?

September 8, 2018 | By Hitesh Bhasin | Filed Under: Marketing

There are many Marketing mix articles here on marketing91 and we keep analysing more and more. We also encourage all small business owners and strategy makers to start planning their strategy with a look at the Marketing mix of brands . There are many reasons that justify the importance of marketing mix.

Marketing mix constitutes of the 4 P’s in case of products – Product , price, place and promotion. In case of services it constitutes of 3 more P’s – People, process and Physical evidence . Furthermore, in recent years, Packaging is also considered as an important P and is said to be the 5th P of the Marketing mix.

Table of Contents

The following points explain the importance of marketing mix.

1) it helps in a clean mix creation.

Your marketing mix should have all the P’s compatible with each other. The price should be compatible with the placement of the product. The product should be compatible with the promotions. In general, all the P’s are intrinsically linked to each other.

As a result, when you are making a marketing mix, it becomes a chain of strong bonds. And these bonds then guide you forward in making the chain longer. Whenever you are considering adding a new feature or changing existing things, you have to look at the overall picture, which helps in creating a clean marketing mix for the product.

2) Marketing mix helps in New product development

While designing an existing product, there are any number of ideas which can come up for a related product that can be designed by the company . The pricing , place and promotions might be different for such a product. Nonetheless, it can be classified as a new product and hence while designing the marketing mix, the company can come up with good ideas for NPD as well.

3) Marketing mix helps increase the product portfolio

Whenever you want to increase the product depth or product line and length , you have to make minor changes to the product. In essence, you are making minor changes in the marketing mix itself. You are making changes to the product features, to its pricing and possible to its promotions. As a result, by altering the marketing mix and certain features within it, you can end up with an enlarged product portfolio .

4) It is a guide to improve a business

Physical evidence was an important P in the service marketing mix. If a restaurant or an interior design business realises its important, then naturally they can act on it and improve the physical evidence of their business thereby bringing in more business.

The importance of marketing mix is evident in more then a single P. People and process are important to the organization too and optimizing both can improve the overall working of the organization. Hence, marketing mix is an excellent guide if someone wants to improve their business and is doing gap analysis .

5) It helps in differentiation

When you analyse the marketing mix of Competitors, there are many different ways that you can differentiate yourself from the competitor. The competitor might have poor promotions and by analysing them, you can create better promotions of your own product.

The competitor might have poor placement of products or he might have the wrong process or the wrong people in place. All this can be improved upon giving you a better marketing mix and therefore a competitive advantage in the market .

6) Finally, it helps you in being dynamic

A company which is well prepared is also prepared when disaster strikes. During recession or during a poor business environment , a company should be ready to respond. At such times, the company needs to be dynamic in nature. Such a company needs to understand its product, processes, people, promotions and all other P’s better. If it understands them, it will respond with a better agility.

Thus, there are many ways that marketing mix may be important to an organization. The best part is, analysing and understanding the marketing mix is not a lengthy procedure and the ROI on the time spent is much higher.

Here is a video by Marketing91 on Marketing Mix – 4Ps & 7Ps.

Liked this post? Check out the complete series on Marketing

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About Hitesh Bhasin

Hitesh Bhasin is the CEO of Marketing91 and has over a decade of experience in the marketing field. He is an accomplished author of thousands of insightful articles, including in-depth analyses of brands and companies. Holding an MBA in Marketing, Hitesh manages several offline ventures, where he applies all the concepts of Marketing that he writes about.

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Mr. Hitesh , Thanks for your excellent writing in marketing that learns more. In future, it may elaborative.

Regards Mridha

Marketing has always been a never ending process of improving engagement with customers for business success and growth.

i really like all of these ideas, it helps me to improve my skills in this course such as marketing

Thank you very much your writing help me to undertand about marketing and serve as my guide

These ideas are very intresting and give some sort of encouragement to students pursuing this course.

Thanks, you are an adept writer. This is a great work. Could you please help me with this question, what is the role of Selling in marketing mix?

I FOUND IT VERY HELPFUL CONTINUE TO ADD MORE PLEASE

Thanks a lot I have learned something on marketing mix. In the past I was thinking that marketing based on buying and selling of goods and services but that’s not the case.

Thank u very much for giving me understanding in marketing mix

This is very easy to understand about marketing mix.

Nice explaination it must help in our future. Thank you Mr. Hitesh Bhasin for an extraordinary work.

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Home » What is the marketing mix and why is it important? | The 4 P’s of marketing

What is the marketing mix and why is it important? | The 4 P’s of marketing

After you have identified your ideal customer, the next step is to go all-in with your customer value proposition.

That is, communicating to your customers what makes you truly better than the many other options available.

Doing your research to specificity who your ideal customer is, and then clearly defining your marketing position is literally half the job. And when you do it well, as your competitors usually won’t, you can almost guarantee yourself a winning position in the market.

So, before we dig into the nuts and bolts of developing your Marketing mix, be sure to review these two tutorials:

• 8 Market Research Strategies used by Marketing Professionals
• Unique Selling Proposition vs. Value Proposition (with examples)

The marketing mix is an important foundation in marketing. 

What is the marketing mix and why is it important? Once you have your target market identified, your next job is to decide upon the marketing mix. Also known as “the 4 P’s of marketing”, the marketing mix is no different than a recipe. Each ingredient is an important part of the marketing plan and is composed of these 4 elements:

Each of these simple ingredients is necessary to complete your marketing plan. But without a clear picture of who your ideal customer is, and the value you bring to the customer , your marketing mix will be off to a rocky start.

Let’s now walk through some examples and get you off to a winning start!

What is marketing mix in simple words?

Every marketing plan contains four key components that are combined into the overall sales and marketing program:

• Your Product or Services - What exactly are you delivering to the marketplace?
• Your Promotion - What are you communicating?
• Your Pricing - What is the price you are selling your product or service for?
• Your Location - Where will you deliver your promotions?

This is your formula.

If one is off the mark, your chances for success severely decline. If more than one is off the mark, your chances for success are virtually none.

But when all four ingredients in the marketing mix are on target, sales success can be yours.

Your job as a marketing professional is to continually tweak and adjust based on data driven marketing strategies , always looking for ways to improve conversions , boost sales, get more from your advertising , generate more customers from your marketing spend , and above all: keep more customers doing more business with you longer .

What are the elements of marketing mix (example)

For example, if you are a massage therapist (or any other service business) the service you provide is massage therapy. This is your product and it’s the first P in your marketing mix formula . And you provide a menu of product choices such as full-body massage, aromatherapy massage, sports massage, and more.

The second P in your marketing mix formula is promotion . This is how you will be communicating your value proposition to your ideal customer, and what you will be saying in your promotional message. You might decide to offer an introductory $20 off any massage for first time customers.

The third P in your marketing mix formula is price , which is how much do you charge your customers for this product. A very important question you need to ask yourself is: As part of your value proposition, how much is my ideal customer willing to pay me for my product? This is very important because if you charge too much, customers may look elsewhere for this product. And if you charge too little, you may not be able to make enough money to cover your costs.

The fourth P in your marketing mix formula is place , which is answering the question: where have I decided to promote my product at this price in order to gain a customer? For example, knowing there is a community 5K and 10K race coming up where there are a large number of participants, you might run a pay-per-click campaign geo-targeting your ideal customers (within a 3-mile radius) offering $20 off for a sports massage to new customers who just ran in the 5K or 10K.

The marketing mix is a simple foundation for you to build your marketing plan. Over time, as you innovate and do more campaigns the marketing mix will become second nature to you. If you need assistance along the way, we are happy to help!

About Your Strategic Marketing Partner Sam Hirschberg, MBA, is Your Strategic Marketing Partner in Arizona . Always professional and a delight to work with, Sam is not your typical “marketing consultant”. Unlike most consultants who tell you there is a problem and say, “See you later and good luck!” Your Strategic Marketing Partner knows how to find solutions, execute programs, test and measure campaigns, and how-and-when it’s time to roll-out big! You are invited to call (602) 892-0777 to learn more about Sam’s background on his FREE 9-minute recorded message.  For more information about Sam, please visit https://strategicmarketingpartner.com.

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Marketing Mix: The 4 Ps of Marketing & How to Use Them?

Appinio Research · 06.08.2024 · 35min read

Have you ever wondered what makes a marketing campaign successful and why some products seem to fly off the shelves while others gather dust? The answer often lies in the marketing mix, a concept that combines several key elements to create a winning strategy. Understanding the marketing mix is crucial for any business looking to meet customer needs, stay competitive, and achieve long-term success. This guide will delve into the essential components of the marketing mix—Product, Price, Place, Promotion, People, Process, and Physical Evidence—providing you with practical insights and examples to help you develop an effective marketing strategy. By mastering these elements, you can tailor your marketing efforts, optimize resources, and drive business growth. Let's explore how each aspect of the marketing mix plays a vital role in crafting a strategy that resonates with your target audience and elevates your brand.

What is Marketing Mix?

The marketing mix is a foundational concept in marketing that refers to the combination of factors a company can control to influence consumers to purchase its products. Coined by Neil Borden in the 1950s, the term initially referred to the 4Ps: Product, Price, Place, and Promotion. These elements work together to create a strategic approach to market a product or service effectively. Each component must be carefully considered and balanced to meet the target audience's needs and achieve the company's marketing objectives.

Importance of Marketing Mix in Business Strategy

The marketing mix is critical in shaping a company's overall business strategy. Here's why it is so important:

• Customer Satisfaction : By tailoring the marketing mix elements to meet customer needs and preferences, businesses can enhance customer satisfaction and loyalty.
• Competitive Advantage : A well-crafted marketing mix helps differentiate a company's products from competitors , creating a unique selling proposition that attracts customers.
• Resource Optimization : Effective use of the marketing mix ensures that resources are allocated efficiently, maximizing return on investment.
• Market Adaptation : The flexibility of the marketing mix allows businesses to adapt to changing market conditions, consumer behavior , and competitive pressures.
• Strategic Alignment : Aligning the marketing mix with overall business goals ensures that marketing efforts support the company's long-term vision and objectives.
• Increased Sales and Profitability : By optimizing each element of the marketing mix, businesses can drive higher sales and profitability through targeted and effective marketing strategies.

Overview of the 4Ps of Marketing

• Product : Refers to what the company is selling, including the quality, design, features , branding, and packaging of the product. It's essential to ensure that the product meets the needs and expectations of the target market.
• Price : Involves determining the right pricing strategy for the product, considering factors such as production costs, target market, competition, and perceived value. Pricing decisions directly impact the demand and profitability of the product.
• Place : Focuses on how the product is distributed and made available to customers. This includes choosing the proper distribution channels, managing logistics, and ensuring the product is accessible where and when customers need it.
• Promotion : Encompasses all the activities and tactics used to communicate the product's benefits and persuade customers to purchase. This includes advertising, sales promotions, public relations, personal selling, and direct marketing.

Understanding and effectively managing these 4Ps allows businesses to create a balanced and integrated marketing strategy that drives growth and meets business objectives.

A product is any good or service that can satisfy customers' needs or wants. It's the cornerstone of your business because it's the primary reason customers engage with your brand. A well-defined product meets customer expectations, solves problems, and provides value. Your product's significance lies in its ability to fulfill market demands and create a loyal customer base.

Product Life Cycle

The product life cycle describes the stages a product goes through, from its introduction to the market to its eventual decline. Understanding this cycle helps in strategic planning and maximizing the product's profitability.

• Introduction : The product is launched, and awareness is built. Marketing efforts are high, but sales growth is typically slow.
• Growth : The product gains market acceptance, and sales increase rapidly. Profits rise, and competitors may enter the market.
• Maturity : Sales growth slows as the product reaches market saturation . Competition is intense, and efforts focus on differentiation and maintaining market share.
• Decline : Sales and profits decline due to market saturation, technological advancements, or changing consumer preferences . Decisions need to be made about discontinuing or rejuvenating the product.

For example, consider the lifecycle of smartphones. When a new model is introduced, it's heavily marketed. As it gains popularity, sales soar. Eventually, sales stabilize as the market becomes saturated, and finally, older models are phased out as new technology emerges.

Product Differentiation and Positioning

Differentiation and positioning are crucial for making your product stand out in a competitive market.

• Product Differentiation : This involves adding unique features or benefits to your product to distinguish it from competitors. It could be through innovation, quality, design, or customer service. For instance, Tesla differentiates its cars using advanced technology and sustainable energy solutions.
• Positioning : Positioning is about creating a specific perception of your product in the consumer's mind. It involves identifying your product's key benefits and associating them with the target market's needs. For example, Volvo positions itself as a leader in vehicle safety, appealing to consumers who prioritize this aspect.

Product Line and Portfolio Management

Managing a product line involves offering a range of related products that cater to different customer needs and preferences. Effective product portfolio management ensures a balanced mix of products that contribute to the overall profitability of the business.

• Product Line : A group of related products marketed under a single brand, catering to different segments or price points. For example, Nike's product line includes running shoes, basketball shoes, and casual footwear.
• Portfolio Management : This involves analyzing the performance of each product and making decisions about product additions, modifications , or discontinuations. Tools like the Boston Consulting Group (BCG) matrix help evaluate products based on market growth and market share to make strategic decisions.

Price is the amount customers must pay to acquire your product or service . It directly affects your revenue and profitability. Setting the right price is crucial because it influences customers' purchase decisions and perceptions of your brand. An optimal pricing strategy balances affordability for customers and profitability for your business.

Pricing Strategies

Effective pricing strategies help you set prices that attract customers and achieve your business goals. Here are some standard methods:

Cost-Based Pricing

Cost-based pricing involves setting prices based on the cost of producing the product plus a markup for profit. This method ensures that all costs are covered and a specific profit margin is achieved.

Price = Cost + Markup

For example, if a product costs $50 to produce and you want a 20% profit margin, the price would be:

Price = $50 + (0.20 * $50) = $60

Value-Based Pricing

Value-based pricing sets prices based on the perceived value to the customer rather than the cost of production. This strategy works well when your product offers unique benefits that justify a higher price.

For instance, a luxury brand like Rolex can charge premium prices because customers perceive high value in the brand's craftsmanship, prestige, and exclusivity.

Competition-Based Pricing

Competition-based pricing involves setting your price based on what competitors are charging. This strategy is helpful in markets with similar products where price differences can significantly impact customer choices.

For example, airlines often adjust ticket prices based on competitor pricing to remain competitive and attract price-sensitive customers.

Factors Influencing Pricing Decisions

Several factors influence your pricing decisions, and understanding them helps you set effective prices:

• Cost of Production : To ensure profitability, direct and indirect costs associated with creating your product must be covered.
• Market Demand : Understanding how much customers are willing to pay for your product helps in setting a price that reflects its value.
• Competition : Analyzing competitors' prices ensures your pricing is competitive and can attract customers.
• Economic Conditions : Inflation, purchasing power, and the overall economic environment can affect how much customers are willing to spend.
• Regulatory Environment : Laws and regulations regarding pricing, such as minimum pricing laws or price controls, need to be considered.

Psychological Pricing Techniques

Psychological pricing techniques leverage human psychology to make prices more appealing and encourage purchases. Here are a few effective methods:

• Charm Pricing : Setting prices slightly below a round number (e.g., $9.99 instead of $10.00) makes the price seem lower.
• Price Anchoring : Showing a higher-priced item first makes other options appear more affordable. For example, a high-end product listed alongside a more reasonably priced one can make the latter seem like a better deal.
• Bundle Pricing : Offering multiple products together at a lower combined price can encourage customers to buy more. For instance, a meal deal at a fast-food restaurant bundles a burger, fries, and a drink at a lower price than buying each item separately.

By understanding and applying these concepts, you can create a pricing strategy that not only covers your costs but also aligns with your overall marketing strategy and business objectives.

Place (Distribution)

Distribution, or place, is about making your product available to customers in the right location and at the right time. It's a crucial aspect of the marketing mix because even the best products won't sell if they're not accessible to the target market. Effective distribution ensures that customers can easily find and purchase your product, which can significantly impact your sales and customer satisfaction .

Distribution Channels

Distribution channels are the pathways through which products travel from the manufacturer to the end consumer. These channels can be direct or indirect, and choosing the right one depends on your business model, product type, and target market.

Direct vs. Indirect Channels

• Direct Channels : Selling directly to consumers without intermediaries. This can be done through online stores, company-owned retail outlets, or direct sales teams. Direct channels provide greater control over the customer experience and margins but can be resource-intensive.
• Indirect Channels : Utilizing intermediaries such as wholesalers, distributors, or retailers to reach the end consumer. Indirect channels can expand market reach and reduce operational burdens but often involve sharing profits with intermediaries.

Online vs. Offline Channels

• Online Channels : E-commerce websites, online marketplaces, and social media platforms. These channels offer convenience, broader reach, and lower operational costs. They are especially effective for tech-savvy and geographically dispersed customers.
• Offline Channels : Physical stores, pop-up shops, and traditional retail outlets. These channels provide a tangible customer experience and immediate product availability, which can be crucial for specific product categories.

Logistics and Supply Chain Management

Logistics and supply chain management are critical components of effective distribution. They involve the planning, implementation, and control of the movement and storage of goods from the point of origin to the point of consumption.

• Warehousing : Efficient storage solutions ensure products are readily available for distribution. Strategic placement of warehouses can reduce shipping times and costs.
• Inventory Management : Maintaining optimal inventory levels to meet customer demand without overstocking or stockouts. Techniques like Just-In-Time (JIT) inventory can enhance efficiency.
• Transportation : Selecting the suitable transportation methods (e.g., trucks, ships, planes) to balance cost, speed, and reliability. Ensuring timely and safe delivery is crucial to customer satisfaction.

Selecting the Right Distribution Strategy

Choosing the right distribution strategy involves considering several factors:

• Intensive Distribution : Placing products in as many outlets as possible (e.g., FMCG products).
• Selective Distribution : Using a limited number of outlets in a particular market (e.g., electronics).
• Exclusive Distribution : Limiting distribution to a single retailer or a few outlets (e.g., luxury goods).
• Cost : Balancing the cost of distribution with potential sales revenue. High-margin products may justify higher distribution costs.
• Control : Determining the level of control needed over the distribution process. Direct channels offer more control but require more resources.
• Customer Preferences : Understanding where and how your customers prefer to shop. This can vary significantly across different demographics and product categories.

Promotion is the aspect of the marketing mix that involves communicating the benefits and value of your product to the target audience. Effective promotion helps increase brand awareness , generate interest, and ultimately drive sales. It's about telling your brand's story in a compelling way that resonates with your audience.

Elements of Promotional Mix

A comprehensive promotional strategy incorporates various elements, each serving a unique purpose in reaching and engaging with customers.

Advertising

Advertising involves paid promotions through different media channels such as TV, radio, print, online ads, and outdoor billboards. It's designed to reach a large audience and build brand awareness . Advertising can be highly targeted and customized to specific segments.

Sales Promotion

Sales promotions are short-term incentives aimed at encouraging immediate purchases or temporarily boosting sales. They can include discounts, coupons, contests, and special offers. Sales promotions are effective in attracting new customers and retaining existing ones.

Public Relations

Public relations (PR) involves managing your brand's image and building positive relationships with the public. PR activities include press releases, media relations, community engagement, and corporate social responsibility initiatives. Effective PR can enhance brand credibility and reputation.

Personal Selling

Personal selling is a direct approach where sales representatives interact with potential customers to persuade them to purchase. It's particularly effective for high-value or complex products that require detailed explanations or demonstrations.

Direct Marketing

Direct marketing targets specific individuals with personalized messages through channels like email, mail, and telemarketing. It allows for precise targeting and measurable results, making it a cost-effective promotional tool.

Integrated Marketing Communications (IMC)

Integrated marketing communications (IMC) ensure that all promotional activities are aligned and deliver a consistent message across all channels. This creates a unified brand image and maximizes the impact of your marketing efforts. IMC involves coordinating various elements of the promotional mix to provide a seamless experience for the customer.

Digital Promotion Strategies

In the digital age, online promotion strategies are essential for reaching and engaging customers. These strategies leverage digital channels to create targeted and interactive marketing campaigns.

• Content Marketing : Creating valuable and relevant content to attract and engage your target audience. This includes blog posts, videos, infographics, and eBooks.
• Social Media Marketing : Using social media platforms to connect with your audience, share content, and promote products. Engaging with followers through posts, stories, and live sessions can build a solid online community.
• Search Engine Optimization (SEO) : Optimizing your website and content to rank higher in search engine results, increasing organic traffic.
• Pay-Per-Click (PPC) Advertising : Running paid ads on search engines and social media platforms where you pay each time someone clicks on your ad. PPC allows precise targeting and quick visibility.

By integrating these strategies into your promotional mix, you can effectively communicate your brand's value, reach a wider audience, and drive sales.

Extended Marketing Mix (7Ps)

The traditional 4Ps of marketing (Product, Price, Place, Promotion) have been extended to include three more critical elements: People, Process, and Physical Evidence . These additional components are especially important for service-based businesses and help create a more comprehensive marketing strategy.

People play a crucial role in the marketing mix, particularly in service industries where customer interactions can significantly impact the overall experience.

Role of Employees in Marketing

Employees are the face of your brand and directly influence customer perceptions. Their behavior, attitude, and competence can make or break a customer's experience. Investing in employee training and development is essential to ensure they represent the brand positively and deliver exceptional service.

For example, Ritz-Carlton is renowned for its exemplary customer service, which is largely attributed to its well-trained and empowered staff, who are encouraged to go above and beyond to meet guests' needs.

Customer Service and Experience

Customer service is a vital component of the overall customer experience. It encompasses every interaction a customer has with your company, from initial contact to after-sales support. Providing excellent customer service can lead to higher customer satisfaction, loyalty, and positive word-of-mouth .

Strategies to enhance customer service include:

• Training employees to handle various customer scenarios effectively
• Implementing customer feedback systems to continually improve service
• Ensuring quick and efficient resolution of customer issues

A real-world example is Zappos, which is famous for its customer-centric approach and generous return policies, creating a loyal customer base.

Processes refer to the procedures and activities that ensure the efficient delivery of your product or service. They play a crucial role in maintaining quality and consistency.

Importance of Efficient Processes

Efficient processes streamline operations, reduce costs, and improve the overall customer experience. They help ensure that products and services are delivered promptly and consistently, which can significantly impact customer satisfaction and loyalty.

Key areas to focus on include:

• Standardizing procedures to ensure consistency
• Using technology to automate and streamline processes
• Continuously monitoring and refining processes to improve efficiency

For example, McDonald's has perfected its food preparation processes to ensure fast, consistent service across all its locations worldwide.

Process Improvement Strategies

Continuous improvement strategies help identify and eliminate inefficiencies in your processes. Techniques like Lean, Six Sigma, and Total Quality Management (TQM) focus on enhancing process efficiency and quality.

Lean focuses on minimizing waste and maximizing value, while Six Sigma uses data-driven methods to reduce variability and defects. TQM emphasizes company-wide quality improvement. Toyota is a prime example of a company that has successfully implemented Lean and Six Sigma principles to streamline its production processes and enhance quality.

Physical Evidence

Physical evidence refers to the tangible elements that customers can see and interact with, which can influence their perceptions of your service.

Tangible Aspects of Service Delivery

Tangible elements include the physical environment where the service is delivered, as well as any materials used in providing the service, such as brochures, signage, and uniforms. These elements help customers form their perceptions of your brand and can significantly impact their overall experience.

Creating a Positive Physical Environment

Creating a positive physical environment involves designing spaces that are aesthetically pleasing, functional, and aligned with your brand image. This can improve customer satisfaction and encourage repeat business. Strategies include:

• Ensuring the physical space is clean, organized, and welcoming
• Using branding elements consistently across all physical touchpoints
• Incorporating sensory elements like lighting, music, and scent to enhance the atmosphere

Starbucks, for instance, creates a cozy and inviting atmosphere in its coffee shops , encouraging customers to spend more time there and enjoy their products.

Integrating these additional elements into your marketing mix can create a more holistic and effective marketing strategy that enhances customer satisfaction, loyalty, and overall business success.

How to Develop a Marketing Mix Strategy?

Creating a marketing mix strategy involves carefully analyzing each component of the 7Ps (Product, Price, Place, Promotion, People, Process, Physical Evidence) and how they interact to meet your business objectives. A well-crafted marketing mix strategy aligns with your overall business goals, targets the right audience, and leverages your unique selling points effectively.

1. Understand Your Market and Target Audience

The first step in developing a marketing mix strategy is understanding your market and identifying your target audience. This involves conducting thorough market research to gain insights into customer needs, preferences, and behaviors. Understanding your competitors and market trends is also crucial.

• Market Research : Use surveys , focus groups , and data analysis to gather information about your potential customers. Identify their pain points, preferences, and purchasing behaviors.
• Competitive Analysis : Study your competitors to understand their strengths and weaknesses. Identify opportunities to differentiate your product or service.

2. Define Your Unique Selling Proposition (USP)

Your USP is what makes your product or service stand out from the competition. It's a unique benefit you offer that is valuable to your target audience. Clearly defining your USP helps craft messages that resonate with your customers and highlight why they should choose your brand over others.

For example, TOMS Shoes' USP is its "One for One" model, where they donate a pair of shoes for every pair purchased, appealing to socially conscious consumers.

3. Develop Your Product Strategy

Your product strategy should focus on delivering value to your customers. This involves decisions about product features , design, quality, and packaging. Consider how your product meets the needs of your target audience and what enhancements could increase its appeal.

• Product Features : Identify which features are most important to your customers and focus on developing these.
• Quality : Ensure your product meets high-quality standards to build trust and satisfaction.
• Packaging : Design packaging that is not only attractive but also functional and environmentally friendly.

4. Set Your Pricing Strategy

Your pricing strategy should reflect the value of your product while being competitive in the market. When setting prices, consider your costs, target market, and competition.

• Cost-Based Pricing : Ensure your prices cover your production costs and provide a reasonable profit margin.
• Value-Based Pricing : Set prices based on the perceived value to your customers. Customers may be willing to pay a premium if your product offers unique benefits.
• Competitive Pricing : Analyze your competitors' pricing strategies and position your prices to attract your target market without eroding your profits.

5. Choose Your Distribution Strategy

Your distribution strategy ensures that your product is available to customers where and when they want it. This involves selecting the proper distribution channels and managing logistics effectively.

• Distribution Channels : Decide whether to sell directly to consumers, use intermediaries, or a combination of both. Consider online and offline channels based on where your customers prefer to shop.
• Logistics : Develop efficient logistics and supply chain processes to ensure timely delivery and reduce costs. Optimize your warehousing, inventory management, and transportation strategies.

6. Plan Your Promotion Strategy

Your promotion strategy involves communicating the value of your product to your target audience. It includes advertising, sales promotions, public relations, personal selling, and direct marketing.

• Advertising : Choose the best media channels to reach your audience, such as TV, online ads, social media, or print. Create compelling messages that highlight your USP.
• Sales Promotions : Use discounts, coupons, and special offers to drive short-term sales and attract new customers.
• Public Relations : Build positive relationships with the public and media to enhance your brand's reputation.
• Personal Selling : Train your sales team to communicate your product's benefits and close deals effectively.
• Direct Marketing : Use personalized marketing techniques, such as email campaigns, to target specific segments of your audience.

7. Integrate People, Process, and Physical Evidence

These additional elements ensure that your marketing mix is comprehensive and customer-centric.

• People : Invest in training and developing your employees to provide exceptional customer service. Ensure that your team embodies your brand values.
• Process : Streamline your processes to deliver a consistent and high-quality customer experience. Use technology and continuous improvement strategies to enhance efficiency.
• Physical Evidence : Create a positive physical environment that reflects your brand. This includes the design of your stores, website, and any other touchpoints where customers interact with your brand.

8. Monitor and Adjusting Your Strategy

Finally, continuously monitor the performance of your marketing mix strategy and make adjustments as needed. Use key performance indicators (KPIs) to measure success and gather customer feedback to identify areas for improvement.

• KPIs : Track metrics such as sales volume, market share, customer satisfaction, and return on investment (ROI) to evaluate your strategy's effectiveness.
• Customer Feedback : Use surveys, reviews, and direct customer interactions to gather insights and make informed adjustments to your strategy.

By carefully developing and continuously refining each element of the marketing mix, you can create a robust strategy that effectively meets your business goals and delights your customers.

How to Measure and Evaluate Your Marketing Mix?

Understanding how well your marketing mix strategy is performing is crucial for making informed decisions and optimizing your efforts. Measuring and evaluating your marketing mix involves tracking key metrics, using analytical tools, and continuously refining your approach to improve results.

Key Performance Indicators (KPIs)

Key Performance Indicators (KPIs) are measurable values that help you gauge the effectiveness of your marketing mix strategy. Selecting the right KPIs depends on your business goals and the specific aspects of the marketing mix you want to evaluate. Here are some essential KPIs to consider:

• Sales Volume : Tracks the number of units sold over a specific period. It helps assess the effectiveness of your product and pricing strategies.
• Revenue : Measures the total income generated from sales. It provides insight into the overall financial health of your marketing efforts.
• Market Share : Indicates the percentage of total market sales your product accounts for. It helps evaluate your competitive position in the market.
• Customer Acquisition Cost (CAC) : Calculates the cost of acquiring a new customer. It includes expenses related to marketing and sales efforts.
• Customer Lifetime Value (CLV) : Estimates the total revenue a customer will generate over their relationship with your business. It helps you understand the long-term value of your customers.
• Return on Investment (ROI) : Measures the profitability of your marketing activities by comparing the revenue generated to the costs incurred.
• Conversion Rate : Tracks the percentage of prospects who take a desired action, such as making a purchase or signing up for a newsletter.
• Customer Satisfaction and Loyalty : Assessed through surveys and feedback to understand how satisfied customers are with your product and service, and their likelihood of repeat business.

Tools and Techniques for Analysis

To effectively measure and evaluate your marketing mix, you need to use various tools and techniques that provide detailed insights and actionable data. Here are some commonly used tools and techniques:

• Google Analytics : A powerful tool for tracking and analyzing website traffic, user behavior, and conversion rates. It provides valuable data on how customers interact with your online presence.
• Customer Relationship Management (CRM) Systems : Tools like Salesforce or HubSpot help manage customer interactions, track sales activities, and analyze customer data to improve relationships and drive sales growth.
• Marketing Automation Platforms : Solutions like Mailchimp enable you to automate marketing tasks, track campaign performance, and analyze customer engagement.
• Surveys and Feedback Tools : Platforms like Appinio help collect customer feedback and measure satisfaction and loyalty. They provide insights into customer preferences and areas for improvement.
• Social Media Analytics : Tools like Hootsuite and Sprout Social offer detailed analytics on your social media performance, including engagement, reach, and sentiment analysis.
• A/B Testing : This technique involves comparing two versions of a marketing asset (e.g., a web page, email, or ad) to determine which one performs better. It helps optimize marketing materials and improve conversion rates.
• Heatmaps and Session Recording : These tools provide visual insights into how users interact with your website. They show where users click, scroll, and spend the most time, helping you optimize user experience and design.
• Competitive Analysis Tools : Tools like SEMrush and Ahrefs allow you to monitor competitor activities, track keyword rankings, and analyze their marketing strategies to identify opportunities and threats.

Using these tools and techniques, you can gather comprehensive data on your marketing mix performance. Regular analysis and interpretation of this data enable you to make informed decisions, adjust your strategies, and continuously improve your marketing efforts. Remember, the goal is to create a dynamic and responsive marketing mix that evolves with changing market conditions and customer needs.

Conclusion for Marketing Mix

Crafting an effective marketing mix is all about understanding and balancing the key elements that influence customer decisions. By focusing on the 7Ps—Product, Price, Place, Promotion, People, Process, and Physical Evidence—you can create a comprehensive strategy that meets your customers' needs and sets your business apart from the competition. Each component plays a unique role in shaping the customer experience and driving sales. Whether it's designing a product that solves a specific problem, setting a price that reflects its value, ensuring it's available where customers shop, or promoting it in a way that captures attention, every decision counts. Integrating these elements thoughtfully can lead to improved customer satisfaction, stronger brand loyalty, and increased profitability. As markets evolve and consumer preferences shift, it's crucial to continuously evaluate and adjust your marketing mix. Use the tools and techniques outlined in this guide to measure performance, gather feedback, and refine your approach. Stay agile and responsive to changes in the market, and don't hesitate to experiment with new strategies to see what works best for your business. Remember, the goal is to create a marketing mix that not only meets immediate objectives but also positions your brand for long-term success. By keeping the customer at the center of your strategy and making data-driven decisions, you can build a resilient marketing plan that adapts to challenges and seizes opportunities, ensuring your business thrives in a competitive landscape.

How to Enhance Your Marketing Mix Strategy?

Developing an effective marketing mix strategy requires timely and accurate consumer insights, and Appinio is the ideal platform to achieve this. As a real-time market research platform, Appinio revolutionizes the way companies gather and utilize consumer data. By providing rapid, actionable insights, Appinio empowers businesses to make data-driven decisions with confidence and speed.

Our platform handles all the technical and research complexities, allowing companies to focus on what truly matters—crafting a marketing mix that resonates with their target audience and drives success. With Appinio, market research is no longer a daunting or expensive task; it's an exciting and intuitive process seamlessly integrated into everyday decision-making.

• Real-Time Insights : Get from questions to insights in minutes, ensuring your marketing mix decisions are based on the latest consumer data.
• User-Friendly Platform : Designed for ease of use, Appinio's platform is so intuitive that anyone can conduct market research without needing a PhD.
• Global Reach and Precision : Define the right target group from over 1,200 characteristics and survey respondents in over 90 countries, with an average field time of under 23 minutes for 1,000 responses.

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03.09.2024 | 3min read

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Beyond Demographics: Psychographics power in target group identification

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What is Convenience Sampling? Definition, Method, Examples

13.1 The Promotion Mix and Its Elements

Learning outcomes.

By the end of this section, you will be able to:

• 1 Define the promotion mix and explain its importance.
• 2 List and describe the elements of the promotion mix.

What Is the Promotion Mix?

We are all consumers, and we have all been the target of promotional campaigns. To connect with consumers of a target market, companies conduct extensive market research so that they may better understand the consumer. When companies understand the consumer, they can better structure a message to appeal to the consumer and also find the best channels for reaching the customer.

The created messages aim to get consumers’ attention. Sometimes they create awareness of a new event, a new product, a new idea, or a place to visit. Sometimes they are asking consumers to make a purchase. Marketing promotion is all around us.

According to the marketing firm Yankelovich Inc. , the average digitally connected person is exposed to around 5,000 ads per day. 4 Among the biggest promotional spenders in the United States is Disney . 5 Disney produces ads for everything from its movies and toys to its vacation clubs and theme parks. While we should be flattered that these companies are thinking of us and trying to figure out how to reach us and what messages they should send, many consumers are busy trying to figure out how to shut out the messages.

When you sit down to watch television, you are typically exposed to ads that a company believes that you will respond to based on the research it has done about the audience watching the show you tuned in to watch. During your time scrolling through your news feed on Facebook , you are being served ads that correspond to your Internet search history and even products you may have mentioned while your phone was on and your news feed open. Digital advertising relies heavily on algorithms of your search history and site visits.

As recipients of these marketing messages, many consumers believe that marketing is only advertising or sales. However, advertising and sales are simply two options in a marketer’s arsenal of communication tools used to connect with the target market. Developing a marketing communications strategy is something marketers should only do after they have developed the rest of the marketing mix.

In fact, marketers have a wide variety of strategies to use from the overall promotional mix (see Figure 13.2 ). Most companies choose to use a combination of the promotional mix methods to create an integrated marketing communication message that reaches the customer in many different ways. When the messaging is integrated, the consumer receives the same message no matter which method of promotion is chosen. If the consumer is watching the news and hears a story about the company or product, public relations has impacted them. If they then scroll through their social media accounts at the end of the day and they see an ad for the same product, advertising has impacted them. When they sort through their email and have a message from the company, they have received a direct marketing communication.

No longer does promotion need to rely heavily on just one method of marketing communication. Marketers can be much more targeted and more cost-effective in the promotional methods they choose. Using a combination of methods to send the same message allows the marketer to be more strategic in their messaging and in their budgeting.

The best products are nothing until the consumer knows about them. Without good promotion, the best products are just secrets. We all have things we want to say, and on any given day we make phone calls, create Instagram posts, upload TikTok videos, send emails, shoot off text messages, and talk face-to-face with people. And just like us, marketers also have things to say. Usually, they want to tell consumers about their new brand extension of Reese’s, a trade-in allowance for a new Toyota Camry that just hit the car lot, or even a buy-one-get-one-free promotion for your Starbucks latte. How marketers decide to say and send the message is the promotion mix.

The promotion mix is the set of strategies marketers use to communicate with their customers. With combined strategies, the promotion mix creates a powerful method of connecting with the customer and conveying all the other marketing mix elements for a holistic marketing approach. The promotion mix allows marketers to reach customers in many different ways, ensuring that the message is seen, heard, and understood. After determining and defining the target market, creating a good product, selecting a pricing strategy and optimal price, and deciding on the distribution method, the marketer is ready to communicate with the customer.

Messages sent by multiple methods provide a better opportunity for consumers to see and hear the message and make the connection back to the company. When a message is only sent by one method, the potential for interference, noise, and avoidance is more likely to occur. Marketers use a multichannel approach to send an integrated message.

Promotion Mix Defined

The full set of strategies that combine to make up the promotion mix include advertising, sales promotion, personal selling, public relations, direct marketing, and Internet/digital marketing. Each of these methods is intended to produce different results when used. Combining the elements creates an overall integrated message designed to reach consumers at various points in their path to purchase. Marketers call this integrated messaging integrated marketing communications.

The Importance of the Promotion Mix

Of all the marketing mix variables, the promotion mix can be further divided into different message channels that allow for connection and communication with the customer. When the promotion connects with the customer, it is the moment when all the marketing activities come together. When the messaging and method of delivery reach the customer and create the desired result, the marketing has achieved its purpose.

The strategies in the promotion mix provide the marketer with an arsenal of methods to achieve their marketing objectives, such as increasing sales or introducing a new product. However, consumers are bombarded with marketing messages throughout the day, and these are combined with the business of everyday life events like news, music, work, chores, family, and friends. With this busy pace and activity, the consumer is very difficult to reach. For the busy consumer, one communication method alone is not likely to cut through the clutter and noise to reach them and make an impact. Marketers must combine the various communication elements to connect with the customer and meet the communication objective.

Elements of the Promotion Mix

When analyzed individually, each of the promotional mix elements is powerful. They each have a part to play in the overall success of a company. When combined and carefully executed, they create powerful brands with legions of loyal fans and followers—the consumers. What do each of these promotional mix elements do, and how do they contribute to the whole process of connecting with the consumer?

• Advertising

Advertising is a multibillion-dollar industry. According to Statista, in 2020 alone, worldwide advertising spending reached $586 billion. 6 Advertising is paid, nonpersonal communication from an identified source that allows for creative messaging about all aspects of a product, service, idea, person, or place. Consumers are able to quickly point to advertising as a form of promotion. It is perhaps the element of the promotional mix that we are most familiar with and the one we have been most exposed to throughout every phase of our lives.

From our very first commercial showing how much fun it is to build with LEGO to imagery of a toddler walking the Disney streets with a costumed princess and Cinderella’s castle in the foreground, we know what advertising looks like. And while advertising can take many forms, it is important to note that advertising consists of carefully designed messaging from the company to the consumer. Advertising is meant to produce a response in the viewer. And advertising is all about what the company wants to tell us.

Advertising can be the pop-up window while we are doing a Google search. It can be the Chick-fil-A billboard we pass every day on our way to work. Advertising can be the trailer we watch before our movie starts. And advertising can be the fun Doritos spots we look forward to during the annual Super Bowl.

While advertising can be a costly means of communication with the customer, it is relatively inexpensive based on the number of people reached. When NBC priced the 2021 Super Bowl at $6 million for a 30-second spot, with a record 96 million viewers, the price averaged out to around $0.06 per person reached. 7

Advertising is effective based on the frequency with which it is usually viewed. And because of the media, the advertising message can usually be repeated many times, depending on the budget. Due to its repeatability, production costs have a better return on investment (ROI) the more an ad is used, and the recall of the ad increases significantly.

Sales Promotion

Most consumers love a sales promotion . It creates a feeling of excitement and often includes a bit of a gaming experience into the purchase decision. Marketers value the benefits of sales promotions because the results are immediate and they have a wide variety of options when using this promotional mix element. A sales promotion is a method for a marketer to induce sales in the short term. Sales promotion is not a long-term strategy but is geared toward specific calls to action, typically aimed at getting the consumer to buy something immediately or enter a sweepstakes or contest (see Figure 13.3 ).

Using sales promotions can be an effective method of getting the consumer to try a product or buy more of a product, or it can be a way to quickly deplete an inventory to make way for new products.

While sales promotions have many tactics that the marketer can employ, several commonly used examples of sales promotion include the following:

• Buy One Get One (BOGO) . When Domino’s Pizza offers the customer a free pizza when they buy a medium one-topping pizza, this BOGO deal is used to get an immediate increase in sales for Domino’s pizza. Consumers may buy Domino’s over other pizza brands because they can get more pizza for their money.
• Enter to Win . PepsiCo needed to gain traction with the millennial audience. It needed to boost the Lay’s brand of potato chips and compete with new flavorful organic chips that were getting market share in the category once dominated by Lay’s. To generate new interest in its brand, Lay’s launched a campaign for consumers to create a new flavor. New flavors could be entered, Lay’s would create samples, and the winner of the new chip flavor would win $1 million.
• Coupons . This method of promotion has come a long way with the use of technology. While consumers are still able to “clip” coupons and redeem them at the point of sale to receive savings on the products they are buying, many companies are making coupons available through mobile apps and discount codes to apply at the point of sale through an e-commerce store. Using coupons is a great method of inducing trial of a new product and increasing market share.

For National Ice Cream Day (see Figure 13.4 ), Cumberland Farms wanted to increase the sales of its house brand of ice cream, Ultimate Scoop . 8 It offered consumers a digital coupon for $1 off a pint of the ice cream. Cumberland Farms’ existing customers received their coupon via text message, and new customers could text in to get the coupon.

• Rebates . Companies offer rebates to induce purchase and generally to receive something in return besides the sale. When a rebate is offered for the purchase of an Energy Star–certified product, the consumer gets a designated dollar amount off the price of the product, and in turn they must submit the proof of purchase along with identifying information about themselves.

Personal Selling

Personal selling is one of the most expensive forms of promotion because it is a one-on-one, person-to-person form of communicating with the customer. The role of the salesperson is to inform and persuade the customer. This is usually done in what is termed an exchange situation. The salesperson is exchanging knowledge and something of value, while the customer is exchanging money for the item of value. Personal selling is ideal for products that can be customized, are complex, and have a relatively high price point.

Typically, personal selling is most often used in business-to-business (B2B) markets. Business buyers have longer buying cycles, more complex buying situations, and larger budgets. The pharmaceutical industry is well-known for using personal selling. Company representatives must have a high degree of training and knowledge about the products they are selling to physicians and hospitals. It is also very common to have a sales force to sell equipment and machinery to manufacturing plants. Businesses rely on the knowledge and service of the sales force selling them products.

In the business-to-consumer (B2C) market, personal selling is used for items that cost more or items that have a high degree of variation. We find sales representatives when we buy automobiles, home improvement products, and insurance. The job of the sales representative is to determine our needs and provide solutions that fill those needs.

When compared to advertising, which has a very general message directed to a very large audience, personal selling is an individualized message for one or several people within the buying group. When evaluating the costs of personal selling, it is typically hundreds to thousands of dollars per person reached.

The process of personal selling can be time-consuming. The process of selling and the tasks of the sales force can be complex. The sales professional is tasked with prospecting to identify the right customers and then qualifying them to make certain they are a good fit for the product.

It is not uncommon to hear people say, “You talk a good game. You could sell to anyone.” In reality, salespeople do not want to talk people into a product. A good sales force only wants to sell to customers who want and need the product. The best sales force knows that when the customer is a good fit, they will bring repeat business and good word of mouth.

While some salespeople have a natural inclination for selling, others are highly skilled with the technical knowledge of the products they are selling. Understanding customers, the buying situation, and the product being sold are a few of the skills needed to master the art of selling. Good sales professionals know that the real work of the sale is to service the needs of the client long after the sale has been made.

Public Relations

Public relations is a nonpaid, nonpersonal form of promotion. Because it is nonpaid, it has a high degree of credibility and is beneficial because a typically credible, non-biased third party is the messenger. While there are many tactics that marketers might use for public relations, some of the most commonly used include press releases, press conferences, events, and annual reports.

Many of the other promotional tools focus specifically on communication with the customer. By contrast, public relations includes efforts to work with the community where it operates, media, government officials, educators, and potential investors.

When Nordstrom opened its flagship store in Manhattan, it unlocked the doors a few days early for a VIP celebration that included Vogue ’s editor, Anna Wintour , along with actresses, models, and designers. Some of the noted attendees included Zoe Saldana , Katie Holmes , Olivia Wilde , Karlie Kloss , Joan Smalls , Winnie Harlow , Tory Burch , Tommy Hilfiger , and Stacey Bendet of Alice + Olivia . Guests formed long lines around the store in an attempt to access the party. 9

TOMS shoes has long been a leader in cause marketing (see Figure 13.5 ). When you buy from TOMS, one-third of the profits go to Grassroot Good . 10 TOMS’ annual report highlights the people the company helps and how it helps them. Investors and any interested parties receive the annual report that details the work TOMS does right along with the profits it is making.

When celebrities wind up in the news, it is public relations, and it works to keep their name before the public and their fans. So the headline that hits the front page of the New York Times or is a leading story on the NBC nightly news both create publicity for the celebrity. Businesses also use publicity. A business might have a product as part of a movie, such as BMW vehicles showing up in 37 of the highest-grossing movies of 2018. 11

Public relations can also include crisis communication when negative issues occur. One of the biggest public relations issues happened in 1982 to Tylenol . A malicious person or persons in the Chicago area tampered with a few bottles of Tylenol Extra Strength capsules by replacing the actual capsules with cyanide-laced capsules. Consumers who unwittingly bought the Tylenol ended up dead. Johnson & Johnson , the maker of Tylenol, was facing issues that could easily have destroyed its business. The issue was the leading story for every news outlet.

Johnson & Johnson faced the issue head-on and made the bold move to have Tylenol removed from all shelves. The recall resulted in the removal of 30 million products from store shelves. 12 In the end Tylenol was a hero and won the trust of a nation.

Direct Marketing

Direct marketing allows for direct communication with the customer. Messages can be tailored to specific market segments and even personalized toward individual consumers. Early tactics of direct marketing included telephone and mail; however, technology has allowed for new methods of connecting with the customer to include text messaging and email marketing.

In 2019, the Data & Marketing Association (DMA) reported that the direct mail industry was valued at $44.2 billion. 13 It’s the second largest channel for ad spend in the United States, and it continues to grow. Transformed by technology, direct marketing is finding new methods to connect with the customer. Most connection includes a call to action that provides for immediate feedback on the effectiveness of the method.

Internet/Digital Marketing

Internet/digital marketing includes uses of technology to reach customers at many different points of interaction. Marketers have at their disposal a variety of methods to reach their customers and brand products. Some of the tools include websites, landing pages, social media pages, widgets, and customer relationship management (CRM) systems. All the digital properties work together to drive traffic to the branded properties and engage the consumers.

Digital marketing is geared toward very specific market segments and is primarily interactive. Think of digital marketing as the mechanism that produces the immediate interaction with the customer and produces some type of feedback. Digital is considered two-way communication between the company and the customer. During the early stages of launching the SPANX brand, Sara Blakely primarily used digital marketing with a heaving emphasis on social media. 14 She involved her women friends who were in her target market demographic and had them post about the brand through their social media.

By contrast, Internet marketing is sending a message to a mass audience. The Internet is used to for digital marketing and includes websites and digital ads as well as the two-way communication of social media. Other forms of digital marketing include mobile technology such as SMS and mobile apps.

When a consumer completes a Google search for shoes and then jumps to Facebook to scroll their feed and are served shoe ads from Nordstrom, Macy’s , and Steve Madden , they have been targeted by these shoe companies. The targeting, immediacy, and changeability of the messaging makes digital a quick and efficient method of reaching consumers. Digital promotional tools are extremely effective and can cut through the clutter and reach the consumer when they are in the demand phase of the buying process and have signaled an intent to purchase.

According to a 2020 chief marketing officer (CMO) survey from Gartner , two-thirds of promotional budgets are being spent on digital. 15 Because of the tremendous analytics available, marketers are able to assess the effectiveness immediately. Messages can be tested for effectiveness and quickly changed if they are not producing results. It is very difficult to get the same quick feedback with any of the other forms of promotion. Through careful tracking and robust customer relationship management (CRM) systems, marketers are quickly able to promote products, increase brand awareness, and move consumers down the sales funnel to instantly purchase through online e-commerce sites.

Utilizing mobile app technology, marketers are able to push promotions to customers while segmenting them by their behaviors and simultaneously filling their CRM with insights and analytics that can help drive promotions and sales.

Careers In Marketing

Integrated marketing career.

An integrated marketing communications (IMC) professional builds and manages campaigns that integrate all the facets of marketing—advertising, public relations, digital campaigns, sales, etc. If you’re interested in this job role, check out this article to learn about the qualifications, experience, and salary . You can also refer to programs offered by educational organizations that specialize in integrated marketing. A few examples of those educational organizations include San Diego State University , Marist , Northwestern , and Eastern Michigan University, to name a few. Check out this list for the Best Marketing Communication Colleges according to Best Accredited Colleges .

Additional resources to explore include the following video:

Knowledge Check

It’s time to check your knowledge on the concepts presented in this section. Refer to the Answer Key at the end of the book for feedback.

• have all of a company’s marketing and promotional activities project a consistent image and message to its target market
• control all facets of a product’s distribution
• communicate with customers only through television commercials
• have complete control over all facets of the marketing mix
• communications about a good, service, or company
• paid forms of nonpersonal communication about a good, service, or company
• communication that moves the product from the wholesaler to the retailer
• communication from a company sales representative to a company buyer
• Sales promotion
• Personal selling
• Public relations
• sales promotion
• public relations
• personal selling
• Internet/digital promotion
• advertising
• direct marketing

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Want to cite, share, or modify this book? This book uses the Creative Commons Attribution License and you must attribute OpenStax.

Access for free at https://openstax.org/books/principles-marketing/pages/1-unit-introduction

• Authors: Dr. Maria Gomez Albrecht, Dr. Mark Green, Linda Hoffman
• Publisher/website: OpenStax
• Book title: Principles of Marketing
• Publication date: Jan 25, 2023
• Location: Houston, Texas
• Book URL: https://openstax.org/books/principles-marketing/pages/1-unit-introduction
• Section URL: https://openstax.org/books/principles-marketing/pages/13-1-the-promotion-mix-and-its-elements

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The 4 Ps of Marketing: What They Are and How to Use Them

Learn what the 4 Ps are and how they can help you in your next marketing endeavor.

The four Ps are a “marketing mix” comprised of four key elements—product, price, place, and promotion—used when marketing a product or service. Typically, successful marketers and businesses consider the four Ps when creating marketing plans and strategies to effectively market to their target audience. Although there are many other “marketing mixes,” the four Ps are the most common and foundational to creating a successful marketing strategy .

Keep reading to learn more about the purpose and history of the 4 Ps and find a detailed breakdown of each element. 

If you're ready to apply the 4 Ps to your business or marketing endeavor, consider taking the Marketing Mix Implementation specialization from IE Business School.

What are the 4Ps of marketing? (Marketing mix explained)

The four Ps are product, price, place, and promotion. They are an example of a “marketing mix,” or the combined tools and methodologies used by marketers to achieve their marketing objectives. 

Did you know?

The 4 Ps were first formally conceptualized in 1960 by E. Jerome McCarthy in the highly influential text, Basic Marketing, A Managerial Approach [ 1 ]. There, McCarthy noted that while the book's text was “similar to that found in the traditional texts, the approach is not.” 

McCarthy’s novel approach was influenced by the still-recent “marketing mix” concept, which Harvard Business School professor Neil. H. Borden popularized in the 1950s. In fact, Borden himself had been influenced by a 1948 study written by James Culliton, in which the author equated business executives to “artists” or “mixer[s] of ingredients” [ 2 ]. Rather than using the same approach for every situation, Culliton and Borden recognized that successful executives instead mixed different methods depending on variable market forces. 

McCarthy streamlined this concept into the four Ps—product, place, price, and promotion—to help marketers design plans that fit the dynamic social and political realities of their time and target market . In effect, the purpose of the four Ps remains the same today as when McCarthy first published his book: “developing the ‘right’ product and making it available at the ‘right’ place with the ‘right’ promotion and at the ‘right’ price, to satisfy target consumers and still meet the objectives of the business” [ 3 ]. 

Watch this video for ideas on how the 4 Ps work in a specific industry, like sports:

The four Ps of marketing

The four Ps form a dynamic relationship with one another. Rather than one taking priority over the other, each is considered equally important in crafting a strategic marketing plan. 

The product is the good or service being marketed to the target audience. 

Generally, successful products fill a need not currently being met in the marketplace or provide a novel customer experience that creates demand. For example, the original iPhone filled a need in the market for a simplified device that paired a phone with an iPod, and the chia pet provided a humorous experience for consumers that was utterly unique.    

As you are working on your product, it is essential to consider potential customers in your target audience and their unique needs. Some questions to consider when working on a product include: 

What is your product? 

What does your product do? Does the product meet an unfilled need or provide a novel experience? 

Who is your product’s target audience? 

How is your product different from what others offer? 

Read more: Competitive Product: Definition + How to Analyze One

Delve into product development, product launch, branding, and customer experiences in the Brand and Product Management course , Part 1 of the Marketing Mix Specialization.

Price is the cost of a product or service. 

When marketing a product or service, it is important to pick a price that is simultaneously accessible to the target market and meets business goals. Different pricing models can have a significant impact on the overall success of a product. For example, if you price your product too high for your targeted audience, then very few of them will likely purchase it. Similarly, if you price your product too low, then some might pass it up simply because they are concerned it might be of inferior quality and cut into your potential profit margins. 

To identify a successful price, you will want to thoroughly understand your target audience and their willingness to pay for your product. Some questions you might ask yourself as you are considering your product’s price include:

What is the price range of your product’s competitors? 

What is the price range of your target audience? 

What price is too high for your audience? What price is too low? 

What price best fits your target market? 

Read more: What Is a Pricing Strategy? + How To Chose One for Your Business

Here's a video on different approaches to setting prices for your products.

Place is where you sell your product and the distribution channels you use to get it to your customer. 

Like price, finding the right place to market and sell your product is key to reaching your target audience. If you put your product in a place that your target customer doesn’t visit—whether on or offline— then you will likely not meet your sales target. The right place can help you connect with your target audience and set you up for success. 

For example, imagine you are selling an athletic shoe you designed. Your target market is athletes in their early twenties to late thirties, so you decide to market your product in sports publications and sell it at specialty athletics stores. By focusing on sports stores over shoe stores in general, you target your efforts to a specific place that best fits your marketing mix.  

To decide the best place to market and sell your product, you should consider researching the physical places or digital channels where your target audience shops and consumes information. Some questions to consider include: 

Where will you sell your product?

Where does your target audience shop? 

What distribution channels are best to reach your target market? 

Read more: What Is a Marketing Channel? 6 Types to Prioritize in 2023

4. Promotion

Promotion is how you advertise your product or service. Through promotional activities, you will get the word out about your product with an effective marketing campaign that resonates with your target audience. 

There are many different ways to promote your product. Some traditional methods include word of mouth, print advertisements, and television commercials. In the digital age, you can create online marketing campaigns to promote your product using content marketing , email marketing , display ads , and social media marketing .

Some questions to consider as you are working on your product promotion include: 

What is the best time to reach your target audience? 

What marketing channels are most effective for your target audience? 

What marketing messages would most resonate with your target audience?

What advertising approaches are most persuasive to your target audience?

Other marketing mixes

The four Ps aren’t the only marketing mix used today. Some other modern marketing mixes include the five Ps, the seven Ps, and the 5 Cs. Although each reflects certain aspects of the four Ps, they also possess some unique elements that alter their emphasis on the marketing process.  

The five Ps

The five Ps are product, price, place, promotion, and people . 

Today, many marketers use the five Ps over the four Ps because they center the experiences of customers and staff in the marketing process. Typical considerations include how a customer behaves, their product experience, and overall satisfaction with the business.  

The seven Ps

The seven Ps are product, price, place, promotion, people, processes , and physical evidence . 

The seven Ps are a further elaboration of the five Ps, adding considerations of the processes that define the customer experience and the physical evidence that the target market needs to see to become customers. While processes might involve the specific customer service processes that define a product, physical evidence can be websites or store displays that help the target market imagine themselves using the product. 

The five Cs

The five Cs are customer, company, competition, collaborators, and climate. 

In some respects, the five Cs reflect many of the same concerns of the four and five Ps, but with added emphasis on external factors, such as possible outside collaborations and competitive research. 

Furthermore, while “climate” refers to the social, political, and economic context surrounding the market, “customer” refers to the target market and customer experience. “Company,” meanwhile, refers to the place of the company and their available resources in the marketing process. 

Start advancing your marketing skills today

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Want to keep learning about the 4 Ps? Define your Ps with Marketing Mix Implementation from IE Business School, which covers brand and product management, pricing strategy, and more.

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Article sources

Oxford Reference. “ E Jerome McCarthy , https://www.oxfordreference.com/view/10.1093/oi/authority.20110803100143321.” Accessed March 15, 2024. 

Guillaum Nicaise. “ The Concept of the Marketing Mix , http://www.guillaumenicaise.com/wp-content/uploads/2013/10/Borden-1984_The-concept-of-marketing-mix.pdf.” Accessed March 15, 2024.

HathiTrust. “ Basic Marketing: a managerial approach , https://babel.hathitrust.org/cgi/pt?id=inu.30000041584743&view=1up&seq=1.” Accessed March 15, 2024.

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Marketing Mix: 7 Ps, 4 Cs, & Other Things You Need to Know

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You can create your custom marketing mix from scratch. But to build a sustainable business, you probably shouldn’t be reinventing the wheel in this area.

In this article, we’re going to cover the following:

Why is the marketing mix important?

• Types of marketing mixes

Five tips on using the marketing mix

Marketing a product or service can become overwhelming quite fast. There are just so many things to think about and no clear place to start.

But marketing mix models put things in the right order. They provide a sort of template that helps to zero in on things that really matter and lay the foundations for a successful marketing strategy .

Types of marketing mixes

The marketing mix and the four Ps of marketing are often used interchangeably. We need to start by noting this is not accurate. The four Ps of marketing are just a type of marketing mix (historically, it’s probably the oldest).

So without further ado, here are the key types of marketing mixes with some examples.

The four Ps of marketing

The four Ps of marketing is a marketing mix model proposed by Jerome McCarthy in 1960. The four components of the model are:

• Product – What you sell.
• Price – How much you sell it for.
• Place – Where you sell it.
• Promotion – How you get customers.

Let’s look at how this works in practice for a SaaS product like Ahrefs:

Recommended reading: How to Implement the 4 Ps of Marketing  

The seven Ps and eight Ps of marketing

The seven Ps of marketing is a marketing mix model designed especially for service marketing and was proposed by Bernard Booms and Mary Bitner in 1981. The seven components of the model are: 

• Product – What you sell.
• People – Who is involved in delivering your product.
• Process – Procedures of delivering the product.
• Physical evidence  – Tangible elements of your service the customers will interact with.

In later years, the model was expanded by some marketing theorists. This resulted in the eighth P: performance , i.e., how you will measure your success.

Since the seven Ps and eight Ps of marketing are models designed for services, let’s see how a service like Uber can use this marketing mix to bring its brand to the market:

The seven Cs of marketing (aka the compass model)

The seven Cs of marketing (also called the compass model) is a marketing mix model proposed by Koichi Shimizu in 1981. It is based on his earlier four Cs model (1973). Here are the seven components of the model:

• Corporation  – The company, i.e., the center of all decision-making.
• Commodity – The product or service you’re offering.
• Communication – How you reach your customers and how you get feedback from them.
• Channel – The distribution channels of your product/service.
• Cost – The overall cost to the consumer.
• Consumer – Needs, security, education, and wants of the consumer.
• Circumstances – Uncontrollable external factors: national/international, economic, social, and weather.

Since this is a framework that takes a lot of different physical factors into account, let’s see how the compass model can work for a hardware company like Tesla.

The four Cs of marketing

The four Cs of marketing is a marketing mix model proposed by Bob Lauterborn in 1990. The four components of the model are:

• Consumer  – The needs and wants of the consumer.
• Cost – The overall cost to the consumer.
• Convenience  – How you make your offering accessible.
• Communication – How you establish two-way communication with the consumer.

For this example, we’re going to look at Huel, the nutritionally complete meal replacement product:

These aren’t the only marketing mix models you will stumble upon. For example, I’ve also heard about the four Es of marketing, the SAVE model, and so on. But they are all more or less extensions or alterations of the types featured above.

Instead of flooding you with all of the possible marketing models, I’d like to share with you some insights on using the marketing mix.

Here are five things worth keeping in mind when designing your marketing mix.

1. Practice designing the marketing mix on competitors first

Coming up with ideas for your marketing mix is easier if you reach out for some inspiration first. There’s hardly a better source of inspiration than other companies, especially your competitors. 

This way, you can learn two important things:

• You may likely find that other companies have similar problems. You can learn how they solve them, use the same solutions, or use your own remixed and improved solutions.
• This is a great exercise for understanding your competitors. After all, to win in the market, you just need to do better than them.

So just take one type of marketing mix and try to fill in the blanks with as many details as you can. You can repeat that for other companies too. After a couple of those, devising your mix won’t seem so daunting.

Recommended reading:   How to Conduct a Competitive Analysis (Template Included)  

2. Always start with the product/service

Seeing the various elements inside the marketing mix models, you may be wondering where to start. Or in other words, what the foundation of the entire plan should be.

My advice: start with the value you are planning to deliver to your customers, i.e., your product or service. Reason: the importance of product-market fit .

Product-market fit is achieved by a company when it has confirmed signals that its product can satisfy an existing demand in a market with high potential. It’s arguably the single most important thing in building a sustainable business and is something that should precede any scaling up of the business.

When you’re leading with your product/service in your marketing mix, you’re aligning your marketing efforts with product-market fit.

This way, if you’re developing your marketing mix pre-market fit (i.e., before validating the idea of your product), the marketing mix will help you achieve product-market fit. And if you’re developing your marketing mix post-market fit, you’ll be building on the success of your product (more on this in the next section). 

Of course, this doesn’t mean that you can completely ignore the customers’ needs and wants and just put something on the market that fits your vision. In fact, the product-market fit is just as much about the idea for the product as it is about the people who will use it.

Take Ahrefs, for example. Before becoming a robust, all-in-one SEO toolset and hiring the first-ever person for marketing, we were testing the waters with one tool built just for backlink analysis. And because the product caught on, we were able to confidently focus our marketing efforts on product marketing .

In 2011, Ahrefs was a tool for one thing only. Thanks to the product-market fit of that offering, we were confident in scaling everything up. What started as a backlink database is now an eight-figure ARR business.

Recommended reading: How to Achieve Product-Market Fit (5 Steps)

3. Coherence is key

Most effective marketing mixes are those that create a coherent system of interlinked elements.

This means that a viable strategy for devising marketing mixes is to build upon elements that are either the most certain or the strongest. This way, the consequent elements of the mix can reinforce themselves. Let me give you an example.

The strongest element in Ahrefs’ marketing mix is the product. Our product is designed to help marketers and business owners rank higher on search engines and get more traffic. From that P (product), we can derive another P (promotion). There are two opportunities for us (which we, of course, took):

• Lots of people are searching Google for solutions to problems our product solves.
• By showing that we can rank our content using our very own tools, we deliver a strong message about the utility of our product and the expertise of the people who develop it.

Here, you can see some of the topics we talk about on our blog. Within them, there are hundreds of subtopics that can add to the monthly Traffic Potential (TP). Data via Ahrefs’ Keywords Explorer .

For us, the obvious solution to that is content marketing, namely product-led content marketing designed to rank on Google . And by choosing a marketing tactic that works well with our product, we’ve strengthened the ties between those two Ps, allowing them to reinforce one another.

We decided to go even further than that. We chose to slice out portions of our products and release them for free. This way, our product  becomes our promotion . It has proven to be an effective way to bring people from search engines to us:

The write-ups of our free tools are some of the pages that bring us the most organic traffic. Data via Ahrefs’ Site Explorer .

4. Guess and test (where needed)

Market research should be the number one step to take in devising a marketing mix or any kind of marketing strategy. But this kind of research can be time-consuming and expensive.

Instead, you can reach for agile market research methods. Make small bets or educated guesses based on information that is available to you and just test them. Then build upon that.

For example, instead of going in circles to search for a definitive, theoretical answer on how to price your product, you can use an agile market research tool like SurveyMonkey for price testing  and get feedback from real people.

The same can be done for your product prototypes with the help of platforms like Loop11 or UserTesting .

Making educated guesses is also not completely unheard of in the world of business. After all, this is how Amazon famously started—with a single stat that the internet is growing 2,300% per year.

Founder Jeff Bezos used this information to make an educated guess that an online bookstore may likely be a viable business idea . He tested that idea, and the rest is history.

• Why You Only Need to Test With 5 Users  
• When an Educated Guess Beats Data Analysis  

5. Review your marketing mix regularly

The factors that you build upon will eventually change. Some will change a year from now, some five years later, and others even longer than that.

To illustrate, here are the things that may change for the companies featured in our analyses of marketing mix types:

• Ahrefs – Increasing demand for all-in-one marketing platforms
• Huel – New studies of the detrimental effect of using sucralose (what Huel uses as a sweetener) long term
• Uber – Outbreak of a pandemic, e.g., COVID-19
• Tesla – Advances in hydrogen fuel and other types of alternative energy

And here’s an example of a company that made a game-changing switch after considering the circumstances: Netflix. Due to advancing web technology and increasing internet adoption, Netflix realized it made less and less sense to stick to renting movies on DVD by mail.

Did Netflix make the right choice to enter the streaming market? Just look at the volume trend of “streaming services,” and the answer becomes obvious. Data via Ahrefs’ Keywords Explorer .

Netflix in 2005 was the “best way to rent movies” (on DVD). Source: Internet Archive .

By the way, here’s another highly successful transformation: Netflix’s decision to not only distribute content but also create content. That decision allowed it to triple its revenue.

When changes happen, it usually means that you need to tweak your mix and adapt to changes in the environment. The trick is not to get caught by surprise. So regularly review your mix.

Final thoughts

I deliberately skipped the broader historical overview of the origin of the marketing mix models. The reason is when it comes to this marketing theory, the fact that something is conceived later doesn’t make it better.

In fact, some marketers argue the original marketing mix, the four Ps of marketing, is still the best one. Well, we won’t go into that too much. But now that you know the different models, you may be wondering which best suits your business.

My advice: start with the four Ps. Because your success or failure is likely going to be dependent on a) the market fit of the product or service, b) the adequacy of the price in the context of market conditions and benefits of your offering, c) whether there’s inconvenient/faulty distribution, and d) whether there are wrong marketing strategies or ineffective tactics. All of those concerns are addressed in the four Ps.

The basic four Ps are embedded in other types of marketing mixes. So you can treat the additional elements of other types as extensions as you move along. But in essence, what you really need to nail is the product, price, place, and promotion.

Got questions or comments? Ping me on Twitter .

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What Is a Marketing Mix?

What are the 4 ps of a marketing mix, what are other marketing tools, what are the four elements of a marketing mix, what are the 7 ps in a marketing mix, what is the purpose of a marketing mix, the bottom line.

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Marketing Mix: The 4 Ps of Marketing and How to Use Them

Investopedia / Mira Norian

A marketing mix includes multiple areas of focus as part of a comprehensive marketing plan . The term often refers to a common classification that began as the four Ps : product, price, placement, and promotion.

Effective marketing touches on a broad range of areas as opposed to fixating on one message. Doing so helps reach a wider audience, and by keeping the four Ps in mind, marketing professionals are better able to maintain focus on the things that really matter. Focusing on a marketing mix helps organizations make strategic decisions when launching new products or revising existing products.

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Key Takeaways

• A marketing mix refers to a framework that uses the four Ps of product, price, placement, and promotion.
• This concept traces back to 1960, when marketing professor E. Jerome McCarthy first published it in a book entitled Basic Marketing: A Managerial Approach.
• The different elements of a marketing mix work in conjunction with one another with the ultimate purpose of generating higher sales.
• In addition to the 4 Ps, three approaches can also be integrated that include people, process, and physical evidence to reinforce a consumer-centric type of marketing strategy.
• This type of strategy extends beyond a product-focused marketing approach.

The four Ps classification for developing an effective marketing strategy was first introduced in 1960 by marketing professor and author E. Jerome McCarthy. It was published in the book entitled Basic Marketing: A Managerial Approach. Depending on the industry and the target of the marketing plan, marketing managers may take various approaches to each of the four Ps. Each element can be examined independently, but in practice, they often are dependent on one another. 

This represents an item or service designed to satisfy customer needs and wants. To effectively market a product or service, it's important to identify what differentiates it from competing products or services. It's also important to determine if other products or services can be marketed in conjunction with it.

The sale price of the product reflects what consumers are willing to pay for it. Marketing professionals need to consider costs related to research and development, manufacturing, marketing, and distribution—otherwise known as cost-based pricing. Pricing based primarily on consumers' perceived quality or value is known as value-based pricing .

Value-based pricing plays a key role in products that are considered to be status symbols.

When determining areas of distribution, it's important to consider the type of product sold. Basic consumer products, such as paper goods, often are readily available in many stores. Premium consumer products, however, typically are available only in select stores.

Joint marketing campaigns are called a promotional mix. Activities might include advertising, sales promotion, personal selling, and public relations. One key consideration is the budget assigned to the marketing mix. Marketing professionals carefully construct a message that often incorporates details from the other three Ps when trying to reach their target audience . Determination of the best mediums to communicate the message and decisions about the frequency of the communication also are important.

Not all marketing is product-focused. Customer service businesses are fundamentally different than those based primarily on physical products, so they often will take a consumer-centric approach that incorporates additional elements to address their unique needs.

Three additional Ps tied to this type of marketing mix might include people, process, and physical evidence. "People" refers to employees who represent a company as they interact with clients or customers. "Process" represents the method or flow of providing service to clients and often incorporates monitoring service performance for customer satisfaction. "Physical evidence" relates to an area or space where company representatives and customers interact. Marketers take into consideration elements such as furniture, signage, and layout.

Additionally, marketers often study consumers in order to refine or update strategies related to services or products. This requires a strategy for communicating with consumers in order to obtain feedback and define the type of feedback being sought.

Traditionally, marketing commences with identifying consumers' needs and ceases with the delivery and promotion of a final product or service. Consumer-centric marketing is more cyclical. Its goals include reassessing customers' needs, communicating frequently, and developing strategies to build customer loyalty .

The four primary elements of a marketing mix are product, price, placement, and promotion. This framework aims to create a comprehensive plan to distinguish a product or service from competitors that creates value for the customer. Often, these elements are dependent on each other.

Product refers to a good or service that meets a customer's needs. Here, companies focus on features that differentiate it from its competitors. An organization may also consider complementary products that fit within its suite of product or service offerings.

Price represents the price point or price range for the product or service. Ultimately, the goal is to maximize profit margins and return on investment while considering the price that customers are willing to pay.

Placement refers to distribution channels. Specifically, where is this product being promoted, and how can you get it in front of your target audience?

Promotion focuses on creating brand awareness around your product or service. Importantly, it looks at how utilizing certain channels can drive sales.

Sometimes, the marketing mix can extend beyond the classic four Ps of product, price, placement, and promotion established by professor E. Jerome McCarthy in 1960. These additional categories include people, physical evidence, and process.

In this way, people represent the employees who interact with customers. A company may consider company culture as it relates to its brand strategy. This may include customer relationship management (CRM) , which aims to increase brand loyalty among customers.

Physical evidence might include the packaging or the layout of a physical store, which can reinforce a brand and create more value to the customer.

Finally, the process identifies areas, often from a logistical standpoint, that enable the customer to have the most seamless experience possible with a product or service. This may include everything from delivery logistics and shipping to managing third-party retailers.

At its core, a marketing mix is focused on promoting a product or service to generate revenue for a company. On the whole, it integrates key marketing strategies that create brand awareness, build customer loyalty, and drive product sales.

The development of a comprehensive, effective marketing plan takes into consideration a marketing mix that includes several areas of focus. Typically, the marketing mix refers to the four Ps: product or service, its price, placement, and promotion. This concept was developed in 1960, when marketing professor E. Jerome McCarthy first published it in a book entitled Basic Marketing: A Managerial Approach.

However, because not all marketing is focused on products, customer-service businesses rely on other marketing tools that might include three additional Ps: the people who interact with customers, the process that creates a seamless customer experience, and physical evidence, or the area where customers and company representatives interact.

All of these tools are used to promote a product or service and build brand awareness and customer loyalty in order to generate revenue for a business.

E. Jerome McCarthy. " Basic Marketing: A Managerial Approach ," Page vi. R.D. Irwin, 1960.

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How to Develop a Successful Marketing Mix Strategy [+ Templates]

Updated: July 28, 2021

Published: July 02, 2020

One of the first things you're taught in your Introduction to Marketing class is that marketing can be best explained using the marketing mix – also known as the four Ps.

They are – and say 'em with me because if you took that class, you know these four words by heart:

However, once you're in your first marketing internship or job, you learn that marketing entails so much more than can be simplified in a four-section marketing mix matrix.

Still, there's an undeniable benefit of marketing teams organizing their work into the marketing mix framework.

When you stray too far away from the four P's, it can be easy to lose focus on your purpose as a marketer.

Marketing truly is about teams and individuals working together to promote a product in the right place at the right price point. Efforts beyond this scope are essential, but they do all stem off of this foundation of the marketing mix.

Here, we're going to dive into what a marketing mix is and how to develop a successful marketing mix strategy for your own company.

What is a marketing mix?

The marketing mix refers to the actions a company takes to market its product(s) and/or service(s). Typically, it acts as a framework for breaking down the four key components of marketing — product, price, place, and promotion.

The marketing mix helps companies organize their marketing initiatives by task and department for more process-driven and impactful marketing campaigns.

This framework has roots dating back to the 1940s and has been evolving ever since. While some elements have been added or tweaked over the years – most notably for the modern digital age – the core elements of the marketing mix (i.e. the four P's) have remained consistent for decades.

Featured Resource: Marketing Mix Templates

Need a way to visualize your marketing mix to share it with your employees or investors? Use these four marketing mix templates to organize your initiatives and activities by the right section. Click here to download them now .

Marketing Mix Elements

When perfected and synchronized, the core elements of a marketing mix provide a well-rounded approach to marketing strategy.

Product refers to what your business is selling – product(s), service(s), or both. The bulk of the work in this element is typically done by product marketers or managers.

Nailing the product element of the marketing mix means doing extensive research and development, understanding the need for the product, developing a product launch plan and timeline, and educating customers and employees – especially salespeople – on the product's purpose.

Price refers to the price point at which you'll sell your product(s)/service(s) to consumers. Arriving on this dollar amount requires consideration of multiple pricing strategies, analysis of similarly priced products in your market, and insights from consumers through surveys and focus groups.

Price speaks to positioning in the market, the speed at which you want to penetrate your market, and your company's revenue goals and profit margin.

In the marketing mix, place refers to where your product or service will be sold. For tangible products, this will include physical locations such as your own store, or a retailer where your product will be resold.

It can also include the other methods where your products can be purchased, like online or over the phone.

4. Promotion

Promotional activities are those that make your target market aware and excited about what you're selling.

While this does include paid initiatives like commercials and advertising, promotion also entails organic initiatives like word-of-mouth marketing, content marketing, and public relations.

Other Elements

While the marketing mix can often be simplified down to the 4 P's, the expansion of the scope of marketing in recent years has resulted in more P's added to the list.

For example, Smart Insights includes the following elements in its marketing mix definition:

• Process , or the large internal initiatives taken to support a product launch, such as including salespeople in goal setting.
• People , which can refer to your buyer, market, and target audience, or your internal team responsible for a launch.
• Partners , or who you'll be working with outside of your company, such as distributors or co-marketing partners.

Some of the other P's can include:

• Payment , or how transactions will be held and processed.
• Physical evidence, or anything tangible pertaining to your product or service, like any materials needed to complete your service or deliver your product.
• Packaging , or anything pertaining to the physicality of your product, like how it looks or how it's packaged.

These other marketing mix elements should be utilized as you see fit for your projects. However, every good marketing mix should rely on a thorough exploration of those first 4 Ps.

Marketing Mix Templates

Fill out the form to get your templates, marketing mix examples from real businesses.

Fintech companies are everywhere, but how many of them focus on organic and non-GMO agriculture?

As sustainable agriculture becomes more top of mind, brands like Mercaris help support agriculture companies looking to stay ahead in the market. Beyond delivering a service, the company identified a niche and launched a business with few direct competitors.

They offer a monthly subscription-based service that arms agricultural companies with the market intelligence needed to compete in the space. This includes detailed reports on food production, commodity prices, and market shifts.

Not long after Airbnb launched, users filed complaints of racism from their hosts and expressed reluctance to use the platform's services. The company implemented measures to appease these concerns. However, it brought attention to an important issue.

It's this uncertainty that allowed Noirbnb to enter the market. The brand tapped into people of color's desire to feel safe and welcomed in their temporary home while traveling – then, they used it as their unique selling position (USP).

The brand even plays on Airbnb's name – which is now a household one – to indicate that they offer a similar service that's been adapted to cater to travelers of color.

Warby Parker

This online retailer of prescription eyeglasses and sunglasses is known for its stylish yet affordable glasses. Warby Parker 's pricing, which starts at $95, undercuts many of its competitors, making it a popular go-to for consumers.

The brand's pricing strategy is based on public perception. In interviews, the founders revealed that originally, they were going to price their frames as low as $45. However, after considering how low prices for items like glasses can be perceived as low quality, they doubled the price to settle at a number that was still competitive.

A brand's pricing strategy can have an important role in how it's perceived in the market. So, it's important to consider what that perception is and if it's the one you want to put out there.

When Canva entered the market, it was every small business owner's dream. You could design any marketing material you wanted for FREE, what more could you ask for?

Eventually, the brand introduced premium versions of its platform. Catering to businesses ranging from small to enterprise-level, they added features like high-quality stock visuals, social media publishing tools, marketing campaign management, and large cloud storage.

Hu , short for "Get Back to Human," is a dessert company that specializes in making organic, paleo chocolate bars free of the junk ingredients we find in big-name products.

The brand has made its products available from multiple major retailers, including Walmart, Target, and Whole Foods. They also have a virtual storefront on Amazon. If stock ever runs out there, you can always purchase their products through their website.

Hu has made its product accessible through multiple channels, maximizing its earning potential while expanding its brand awareness.

The Lip Bar

Vegan beauty brand The Lip Bar leverages influencers and celebrities to promote its products and increase its brand awareness. Recently, the brand partnered with beauty influencer Raye Boyce to announce its expansion into Walmart stores and its nine latest products.

The Lip Bar places women of color at the center of its products and collaborating with a Black influencer known for her love of lipsticks is in perfect alignment with the brand's identity.

Beyond a robust social media presence, the company also has a blog on its website with content that appeals to audiences across the buyer's journey.

Avant-Garde Vegan

Some brands launch a product then promote, while others promote then launch.

Avant-Garde Vegan , an online brand created by UK-based chef Gaz Oakley, grew his business on social media – namely YouTube. Oakley gained popularity posting recipes for healthy, vegan dishes and soon became a go-to resource for new and established vegan consumers.

Eventually, Oakley released his first product, a cookbook. Now the brand sells both cookbooks as well as merchandise.

The reason why this strategy works particularly well is that it focuses on adding value instead of selling. Oakley gained his audience's trust and loyalty through consistent and quality posts on social media.

Once he introduced a product, many of his followers were ready to make a purchase. It's a long-term strategy that can have a big payoff if executed well.

How to Develop a Marketing Mix Strategy

Because the marketing mix incorporates elements from across your department – and even your company – it's imperative to establish a marketing mix strategy for each product you launch, or for your company as a whole. For a fully fleshed-out marketing mix, follow these steps.

1. Engage in market research and product development.

The success of your marketing work is first and foremost contingent on your product. Make sure it's well developed and your team can speak to its benefits and the story behind it.

Best practices in this step include:

• Engaging in market research to understand your buyers' needs.
• Speaking to your current customers to uncover their pain points and see which needs to address in your current product or service line.
• Monitoring industry trends to identify a potential demand in your market.
• Examining the competition.
• Collaborating with your product team during product development to ensure it meets your buyer personas' needs.
• Having your product tested by current customers to see how they're using the product or service and if it's actually solving for their problems.

Taking these actions ensures you're making every effort to understand and solve for your customer, providing a solid foundation for your product to launch successfully.

Featured Tool: Market Research Kit . To make your R&D more impactful, use these free market research templates so you can better understand your customers and competitors.

2. Determine your pricing model.

A lot goes into choosing a price point – so much so that we wrote an entire guide to pricing strategies .

Luckily, you'll be able to refer to much of the work done in the previous section. Thanks to your understanding of your market through research, you'll have answered most of the necessary questions in this section. You'll also need to take your costs into account so you can maximize unit sales and profit.

During this stage, make sure you do the following.

• Speak to customers (or refer to previously completed market research) to determine the ideal selling price.
• Work with the product team to ensure the product can be developed in a cost-effective manner that would ensure profitability at your target price point.
• Meet with financial experts to determine aggressive yet realistic sales forecasts to contribute to the company's bottom line.
• Collaborate with your sales team to determine discounting strategies.
• Determine how you'll adjust price and revenue forecasts when selling through resellers.

Lastly, don't forget to factor in the perceived value by the customer. Even if your product or service doesn't cost a significant amount to make, you'll be able to mark up your product more if you face little competition and provide an irreplaceable benefit to your customers.

Featured Tool: Pricing Strategy Calculator . If you need help selecting your pricing model, use this template to compare different pricing strategies and see which will yield your company the most profit and revenue based on your forecasts.

3. Choose your distribution channels.

The "place" part of the marketing mix answers where your product will be sold. Keep in mind, this can be any combination of your store, a distributor's store, or online. You'll want to address the following points before moving onto the promotion stage:

• Determine if your product will fare best in your physical location, a store of another retailer, on your website, on another company's website, or some combination of these locations.
• Think about geographic location – make sure your supply meets regional demand, and plan for whether or not what you're selling will be available in a certain city, a state, the country, or worldwide.
• Come to an agreement with retailers and resellers on margins, markups, and manufacturer suggested retail prices (MSRP).
• Figure out how many salespeople will be needed to ensure you meet your goals.
• Set goals for retail, third-party sellers, since you may be sharing shelf space or search results with a competitor or two.

4. Select your promotion tactics.

Finally, it's time to promote your product. While this is probably the element most associated with marketing, it's crucial that this element be completed last, because you need the foundation of product, price, and place before determining promotion tactics.

Think about it – shouldn't you know what you're promoting, why you're promoting it, and where it's available before actually promoting it? It's tempting to jump right to this step, but your promotion will be much better off if it's done after everything else in the marketing mix.

Once you do have that understanding, consider the following promotional channels and choose the one(s) that makes the most sense for your product, its buyers, and its price point:

• Content marketing efforts, such as blogging, content creation, and building a website.
• Public relations and working with affiliates and/or influencers.
• Social media marketing – both organic and paid – on channels such as LinkedIn, Facebook, and Instagram.
• Search engine ads on sites like Google and Bing.
• Ads to air on video streaming sites like YouTube, or on TV.
• Event marketing, including attending industry events or hosting your own event.
• Customer marketing and utilizing referrals.
• And more – There are countless promotional ideas you can use to spread the word on your product, service, or business.

Featured Tool: Marketing Plan Template . If your promotional tactics are multi-faceted enough, consider documenting your plans in this customizable template.

Every company's marketing mix is different, placing emphasis on certain factors over others.

Some businesses use their marketing mix for a single product, while others adopt a company-wide marketing mix. However, good marketing mixes should tie in all the elements without neglecting one.

All elements of the marketing mix are important, so don't be quick to overlook any of them, and find ways for different elements of the mix to overlap and share goals.

With so many activities happening to support a single initiative, it's helpful to organize everything in a single template for easy reference. Here are a few examples of marketing mix templates your marketing department can use, in addition to when they might make sense to reference.

1. Simple Marketing Mix Template

Download this Template

This template is a great starter for organizing a marketing mix. It's ideal for one product and for the marketing mix's maker to get an understanding of all the elements involved in the marketing of a product.

2. Company Marketing Mix Template

For a marketing mix that applies company-wide, this template is a perfect fit. You can outline the initiatives that apply to most or all of the products and/or services in your suite.

3. Structured Marketing Mix Template

For when you need to get right to the point with a more organized, actionable visualization, use this structured, bulleted template for quick reference and clarification.

4. Production Marketing Mix Template

Finally, a production marketing mix template is best utilized for internal reference. This template answers questions on the go-to-market efforts for products and services that you're selling.

Mix It All Together

Whether you're a student just learning to understand everything that marketing entails or a CMO hoping to clearly convey the work that your team is doing to your fellow employees, the marketing mix framework is an essential tool to help you get the job done.

Don't forget – if you need to organize your marketing initiatives into a central location, try using HubSpot's Marketing Mix Templates to document your activities in one place.

Don't forget to share this post!

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Better Knowledge. Your Insight Is Sharper

Understanding the Marketing Mix: Your Essential Guide

Updated: August 18, 2024 · Reviewed by: Ahmad Nasrudin

This post may contain affiliate links, meaning we may earn a small commission if you purchase through our links. This helps support our work.

In a competitive business, success hinges on understanding how to attract and retain customers. Marketing plays a crucial role in achieving this, and the marketing mix serves as a powerful framework for developing winning marketing strategies. Mastering the marketing mix is essential for excelling in understanding real-world marketing practices.

What is a marketing mix?

The marketing mix is ​​a set of elements for satisfying consumers profitably. In the conventional model , it consists of product, price, promotion, and place.

The experts then added three other elements: people, process, and physical evidence. The additions accommodate the intangible product (or service), which has a different key to success from the tangible product.

Companies consider these elements in making decisions and designing unique selling propositions. They are supposed to sell the right product at the right price in the right way at the right location and time. Because they face competition, they must also do better than competitors.

The marketing mix is ​​the main factor influencing whether a business can sell it profitably. The company considers it to suit the needs and preferences of consumers in the target market . It is essential because it helps companies to:

• Understand where they should focus their marketing efforts.
• Determine what products they can offer to customers, at what price, where, and how to attract customers.
• Develop and execute an effective marketing strategy.
• Allocate resources effectively and efficiently, avoiding unnecessary costs.
• Leverage company strengths and minimize threats to internal weaknesses.

The 7Ps of the marketing mix

The marketing mix encompasses seven key elements, often referred to as the 7Ps. Each element plays a crucial role in shaping the marketing strategy and achieving the desired outcomes. Let’s delve into each P and explore its significance:

• Product : What a company offers, aligned with customer needs (e.g., Apple’s tech-focused designs).
• Price : The value assigned to the product, considering costs, competition, and customer perception (e.g., Rolex’s premium pricing for luxury).
• Promotion : Communication channels to inform, engage, and persuade customers (e.g., Nike’s motivational campaigns).
• Place : How and where customers get the product (e.g., Amazon ‘s online platform).
• People : The company staff’s role in delivering a positive customer experience (e.g., Ritz-Carlton’s well-trained personnel).
• Process : Systems for consistent service delivery (e.g., McDonald’s standardized processes).
• Physical evidence : The tangible aspects of the service environment (e.g., a high-end restaurant’s ambiance).

A product is something offered by a company to satisfy customer needs and wants. It may be an existing product, an improvement of an existing product, or a newly developed one.

Products fall into two categories: goods and services. Goods represent tangible products, while services represent intangible products.

Consumers need the right product. So, companies have to think about features and quality that make their offering worthwhile. They design a unique selling proposition to meet customer needs and differentiate their products from competitors’ products.

Possible products are:

• Mass product
• Differentiated product

Mass products offer standard features and quality. They are relatively similar to competing products on the market. Thus, to attract customers, the company offers them at a lower price. The company usually adopts mass production, promotion, and distribution to achieve higher economies of scale, lower production costs, and profitability.

Differentiated products accentuate high quality. They offer uniqueness to entice people to buy and be willing to pay a higher price. Such products have a higher profit per unit margin than mass products.

Price is the monetary value of the company’s product. Consumers perceive it as a cost to obtain the product and fulfill their needs.

Pricing decisions are essential. If the price is too low, the producer’s profit will be less. Consumers may also lose confidence in the quality of the product. However, if it is too high, fewer consumers will be interested in buying.

Price is often associated with perceived value by customers. The price of the product should be proportionate to its value. If consumers perceive the price as higher than the value of the product, they are dissatisfied. Conversely, if it is lower, they are satisfied.

Pricing also depends on the company’s marketing strategy, especially under:

• Mass marketing
• Differentiated marketing

In mass marketing, companies charge low prices and offer standard product quality. The profit margin per unit is low, so to achieve their targeted total revenue, they have to sell at a high volume.

Under differentiated marketing, companies charge high prices and offer unique products. The uniqueness of the product makes consumers willing to pay more. Because it has a high profit per unit margin, it may achieve its revenue target with low sales volume.

How low or how high the company sets the selling price requires in-depth research. Whether for mass products or differentiated products, higher prices will prevent customers from switching to competing products. Conversely, too-low prices will result in less revenue.

Various factors are considered in setting a price, including:

• Production costs, including fixed and variable costs
• Characteristics of target consumers, whether they are quality-conscious or price-conscious consumers
• Product type, whether mas product or differentiated product
• Target market, whether it is a new market or an existing market
• Competition in the market, including the number of competitors and their strategies
• The price elasticity of demand, about how sensitive consumers are if the company changes the selling price

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Promotion encompasses all the activities and strategies companies employ to communicate their brand message, generate interest in their products or services, and ultimately drive customer purchases. It’s about creating a persuasive narrative to convince consumers that their offering is the ideal solution to their needs.

Effective promotion must convince consumers that the company’s products are the most appropriate choice. Companies use promotional and communication channels to inform consumers of product availability, create interest, and convince them to buy. Promotion involves advertising, sales promotion, public relations, and direct marketing (we call it a promotion mix).

Promotion mix

Companies utilize a diverse set of promotional channels, often referred to as the promotion mix, to effectively reach their target audience. These channels include:

• Advertising : Paid messages are disseminated through various media channels, such as television, radio, print media, or online platforms, to create widespread brand awareness and product visibility.
• Sales promotion : Short-term incentives like discounts, coupons, contests, or free samples designed to stimulate immediate sales and encourage product trials.
• Public relations (PR) : Earning positive media coverage and building strong relationships with stakeholders to enhance brand image and credibility.
• Direct marketing: Targeted communication channels like email marketing , social media marketing, or direct mail that allow for personalized messaging and relationship building with potential and existing customers.

Product packaging plays a crucial role in promotion beyond simply containing the product. Well-designed packaging acts as a silent salesperson, attracting customer attention, conveying brand identity, and influencing purchasing decisions. Effective packaging should be:

• Informative : Clearly communicate product information and benefits.
• Visually appealing : Attract attention and project the desired brand image.
• Functional : Ensure product protection during storage and transportation.
• Sustainable : Consider eco-friendly materials and production methods to resonate with environmentally conscious consumers.

Objectives of promotion

Effective promotion strategies strive to achieve a range of objectives critical for business success:

• Brand awareness & customer acquisition : Increase brand visibility and attract new customers to consider the product or service.
• Product trial & adoption: Encourage potential customers to try the offering and experience its benefits firsthand.
• Customer retention & loyalty: Foster positive relationships with existing customers, incentivizing repeat purchases and building brand loyalty .
• Brand differentiation: Highlight unique selling propositions that set the offering apart from competitors, influencing customer preference.

By crafting a compelling promotional mix, utilizing strategic packaging, and aligning promotions with specific objectives, companies can effectively communicate their brand message, spark customer interest, and drive sales growth.

This decision concerns where to sell and how the product is made available to consumers when needed. One approach is to consider a sales location close to consumers.

In addition, companies must consider how to distribute goods effectively and at a low cost. That includes deciding whether or not they are dependent on external distributors and retailers.

Find strategic locations for several businesses, such as retail and restaurants. They usually choose busy city centers, where many potential customers are available. Meanwhile, customers also feel comfortable because it is close to where they live or work.

Distribution channels

The choice of distribution channels determines the route the product or service takes from production to the final customer. Companies have several options:

• Direct sales : This approach involves selling directly to consumers, eliminating intermediaries. This can be achieved through the company’s online store, physical retail location, or a dedicated sales force. Direct sales offer greater control over brand image and customer experience but may require higher upfront investment and limited reach.
• Indirect sales : This leverages external channels like wholesalers, distributors, or retailers to reach a wider audience and potentially reduce distribution costs. However, companies relinquish some control over brand presentation and customer interactions.

Location strategy

The selection of a sales location is a crucial decision that directly impacts customer accessibility. Key factors to consider include:

• Target market: Understanding the ideal customer’s demographics and shopping habits is paramount. Busy city centers might be ideal for businesses targeting young professionals, while suburban locations could be more suitable for families seeking convenient access to everyday essentials.
• Product type: The inherent characteristics of the offering influence location selection. Perishable goods like fresh produce benefit from high-traffic, easily accessible locations. Luxury items, on the other hand, might thrive in upscale shopping districts that project a sense of exclusivity.
• Competitive landscape : Analyze the location of the competitors and consider strategic differentiation. While proximity to competitors can increase overall foot traffic, it’s also important to establish a unique brand presence.

Balancing cost and efficiency

Finding the optimal distribution channel and location involves striking a balance between effectiveness and affordability. Companies navigate this by:

• Cost-effectiveness: A key objective is to minimize distribution costs while ensuring products reach the target market efficiently. Indirect sales can be more cost-effective for wider distribution, while direct sales might offer greater control over brand experience.
• Control : The level of control desired over brand presentation and customer interactions also influences the decision. Direct sales offer more control but require a larger investment. Indirect sales offer a wider reach but require a careful selection of partners to ensure brand alignment.
• E-commerce retailer : A leading e-commerce retailer like Amazon has invested heavily in a robust online platform and efficient delivery network. This empowers them to conveniently deliver a vast selection of products to customers’ hands, regardless of location.
• Boutique coffee shop: A boutique coffee shop might prioritize a strategic location within a bustling business district, catering to professionals seeking a convenient pick-me-up during their workday.

By carefully considering distribution channels, location strategy, and cost-effectiveness, companies can optimize customer access to their products or services, maximizing sales opportunities and fostering brand loyalty .

This marketing mix refers to employees and business managers. It involves choosing and developing the right staff to deal with customers.

How staff interact and communicate with customers affects marketing success, especially services. Customers rate the company’s services based on the people who represent the organization.

Staff provides service, which creates customer relationships and trust. If they are proficient, this creates a positive impression, a willingness to use services, and perhaps a recommendation to others. Conversely, if not, it can lead to bad customer reactions and loyal customers.

Salespeople need to know what they are selling and how to sell it. It is determined not only by their education and skills but also by their attitude, appearance, body language, facial expressions, and speech.

Recruiting and nurturing a team with the right skills, attitude, and customer focus is paramount. Here’s what to consider:

• Skills & knowledge: Employees should possess the technical skills and product knowledge required to assist customers effectively.
• Customer service orientation: A genuine commitment to providing exceptional customer service is essential. This includes active listening, clear communication, and a willingness to go the extra mile to resolve customer issues.
• Positive attitude & professionalism: A positive and professional demeanor fosters trust and creates a pleasant customer interaction. This encompasses aspects like appearance, body language, and effective communication skills.

Building customer relationships

The way the staff interacts with customers directly impacts their perception of the brand. Positive interactions foster trust and loyalty, while negative encounters can lead to dissatisfaction and lost business.

Here’s how the team can build strong customer relationships:

• Active listening & empathy: Taking the time to truly understand customer needs and concerns demonstrates empathy and builds rapport.
• Clear communication: Providing accurate and easy-to-understand information ensures customers feel informed and valued.
• Problem-solving & resolution: Effectively addressing customer issues demonstrates the commitment to their satisfaction and strengthens brand loyalty .

Beyond transactions: building brand advocates

A well-trained and empowered team can become an extension of the marketing efforts. Their positive interactions and genuine enthusiasm for the brand can turn satisfied customers into brand advocates who recommend the products or services to others.

Investing in employee training and development programs equips the staff with the necessary skills and knowledge to deliver exceptional customer service. This not only benefits the customers but also fosters a positive and motivated work environment for the team.

By prioritizing people and fostering a customer-centric culture, companies can leverage the human touch to enhance their marketing efforts and achieve sustainable business success significantly.

Processes are systems, procedures, and policies for providing services. It is essential to provide a consistent standard of service to all customers, which creates loyalty and trust in the company. Processes also help increase efficiency, thus saving time and money.

These processes serve a critical role in ensuring consistent service quality, boosting customer satisfaction, and ultimately driving business success.

Consistency is key

Customers expect a consistent level of service quality regardless of who they interact with or when they interact with the company. Clearly defined and efficient processes help to achieve this consistency. Here’s how:

• Standardized procedures: Developing clear step-by-step procedures for each service interaction ensures all employees follow the same guidelines, resulting in a uniform customer experience.
• Training and development : Investing in comprehensive training programs equips employees with the knowledge and skills required to execute established processes effectively.
• Quality control measure s: Implementing quality control mechanisms allows the company to monitor service delivery and identify areas for improvement.

Efficiency & optimization: saving time and resources

Streamlined processes not only enhance service quality but also contribute to greater efficiency within the organization. Here’s how efficient processes benefit the business:

• Reduced errors & rework: Clear procedures minimize the risk of errors and rework, saving time and resources.
• Improved resource allocation: Efficient processes ensure resources are allocated effectively, enhancing overall productivity.
• Faster service deliver y: Optimized processes can lead to faster service delivery times, improving customer satisfaction and boosting the competitive edge.

Technology as an enabler

Technology can be a powerful tool for enhancing and streamlining the service processes. Here are some examples:

• Customer Relationship Management (CRM) systems: These systems can centralize customer data, streamline communication, and automate tasks, improving overall service efficiency.
• Appointment scheduling tools: Online appointment scheduling tools allow customers to conveniently book appointments at their own pace, reducing wait times and improving the customer experience.
• Automated payment systems: Secure online payment systems allow for faster and more convenient transactions.

By investing in process design, optimization, and leveraging technology, companies can ensure consistent, efficient, and high-quality service delivery. This translates to enhanced customer satisfaction, improved brand perception, and, ultimately, sustainable business growth.

Physical evidence

Physical evidence represents both tangible elements and the environment in which companies deliver services and interact with customers. It may be the physical space and its appearance and decoration. It can also refer to the appearance of employees and the way they dress and act.

Physical evidence extends beyond just the functional aspects during the service delivery. It’s about creating a holistic and memorable sensory experience for the customers. Consider the following:

• Ambiance & design: The layout, décor, lighting, and overall atmosphere of the service environment can significantly impact customer emotions and perceptions. A clean, well-organized space with soothing colors and comfortable seating can create a sense of relaxation and welcome. In contrast, a cluttered and noisy environment can be overwhelming and detract from the customer experience.
• Employee appearance & demeanor: The way the employees dress, act, and present themselves is also part of the physical evidence. A professional and courteous demeanor, coupled with appropriate attire, fosters trust and reinforces the brand image.

Differentiation through design

Physical evidence can help differentiate a company from its competitors. Lighting, layout, and interior design are one way to provide comfort for consumers. They influence consumers’ emotions when the interaction takes place. By carefully crafting a unique and memorable service environment, companies can create a lasting impression on the customers. Think about:

• Theme integration : For restaurants or retail stores, consider incorporating a theme that reflects the brand identity and resonates with the target audience.
• Sensory appeal: Engage multiple senses to create a more immersive experience. Pleasant background music, appealing aromas, and comfortable seating can all contribute to a positive perception.

How the 7Ps work together

The true power of the marketing mix lies in its holistic approach. Each element is interconnected and works in harmony to create a cohesive marketing strategy. For instance, a company may choose to sell high-quality, differentiated products (Product) at a premium price (Price) through exclusive retailers (Place). Their marketing efforts (Promotion) might emphasize the unique features and benefits of the product, targeting a specific customer segment. This creates a consistent brand image and a seamless customer experience across all touchpoints.

Let’s look at real-world examples:

GoPro, a manufacturer of action cameras, understands its target audience – adventure enthusiasts. They leverage the Product element by offering durable, waterproof cameras ideal for capturing action shots. Their Promotion strategy emphasizes the active lifestyle, featuring their cameras in adrenaline-pumping videos and partnering with athletes. This resonates with their target market, influencing Place decisions – GoPro cameras are often available at sporting goods stores frequented by their customer base.

Starbucks excels at creating a welcoming and comfortable environment (Physical Evidence). Its friendly baristas (People) contribute to a positive customer experience. Its process ensures consistent beverage preparation and efficient service. These elements, combined with its strategic store locations (Place) and targeted marketing campaigns (Promotion), have solidified Starbucks’ position as a leading coffee brand.

• 4Ps of the Marketing Mix and its Components
• Marketing mix element: People
• 7Ps Marketing Mix: Importance and Components
• An Essential Guide to Understand the “Place” on the Marketing Mix
• The 3 Ps of Marketing: People, Process, and Physical Evidence Explained

About Ahmad Nasrudin

I am an introspective writer with a strong passion for storytelling and a keen analytical mind. Drawing on my experience in equity research and credit risk, I bring a unique perspective to my writing. I aim to provide you with the information you need to start a business or make informed investment decisions. Learn more about me

• Multidivisional Structure: Importance, How it Works, Pros, Cons
• Business Size: How Business Scale Shapes Success (Importances, Measurement, Classification)
• Values, Attitudes and Lifestyles (VALS): Categories and Why They Matter
• Roles of Business: Satisfying Needs and Wants and Creating Value, Jobs, Income
• Span of Control: Importance, Types, Advantages, Disadvantages

• Agile & Development
• Prioritization
• Product Management
• Product Marketing & Growth
• Product Metrics
• Product Strategy

Home » What Is Marketing Mix & 7 P’s of Marketing? With Examples

What Is Marketing Mix & 7 P’s of Marketing? With Examples

March 18, 2022 max 15min read.

Table of contents:

• What is Marketing Mix?
• What are the 7 Ps of the Marketing Mix?

What Are the 4 C’s of the Marketing Mix?

• What is The Process of Finding Your Optimal Marketing Mix?

Marketing Mix vs. Product Mix

What is marketing mix, the definition.

“The marketing mix is “the set of marketing tools that a company utilizes to achieve its marketing goals in the target market environment.” According to marketers, it’s what makes your product unique and different from the competition.”

Marketing is about matching the right product with the right audience at the right price, place, and time. It may seem simple, but a lot goes into figuring out what customers desire, where they shop, how to price the product to match its value, and coordinating it all to meet the correct time frame. 

One misstep, such as promoting a fuel-efficient car in a country with cheap fuel, releasing a textbook post-school year, or pricing it incorrectly, can lead to unsuccessful marketing efforts. To avoid such mishaps, the marketing mix and its four key components, known as the 4Ps of marketing, come into play.

This article delves into the marketing world by providing a comprehensive glossary of terms related to the marketing mix.

What Are the 7 Ps of the Marketing Mix?

The following involves the process of defining the marketing mix:

Product 

A company’s product is what it offers to the market, be it a tangible item such as a beverage or clothing or a digital offering like software. Services, such as consultancy, speaking engagements, or therapy sessions, are also considered products. 

Essentially, the product is anything made available for consumption by the end user. As part of the 4Ps strategy, it’s crucial to understand what sets your product apart from others and what appeals to customers. With a unique selling proposition, it can be easier to succeed in the market.

The company manufactures or designs the item or service to fulfill consumer needs . 

The product ought to be promising, productive, and effective. Customers will only buy an efficient product when you promote it heavily. 

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Your audience will acknowledge the marketing investments and strategies if the product has potential.

How do you make your product potential enough? With the help of effective product development, design, and branding . 

Bringing a product idea from conception to market includes product development. It entails performing market research and designing, testing, and producing products. An effective product development process yields a product that appeals to consumers and stands out in the marketplace. 

Companies that invest in product development can produce cutting-edge goods that satisfy the shifting consumer demand, boost sales, and help them keep a competitive advantage while expanding their businesses.

A significant marketing component is product design , which determines a product’s appearance, features, and functionality. It aids in separating items from rivals, establishing brand identity, appealing to clients and satisfying their demands, enhancing functionality, and boosting sales. Product success and overall customer happiness get influenced by good design.

The practice of giving a product a distinctive identity in consumers’ perceptions is called product branding. It entails creating a moniker, looks, and personality for the product that sets it apart from rivals.

By forging a strong emotional bond with customers, developing product identification, and setting it apart from rivals, product branding aids businesses in marketing. Product branding is an essential component of an effective marketing plan since it can raise the price of a product, foster client loyalty, and boost overall sales.

Example of Product

In the case of the iPhone, the product will include every feature and design.

The cellular structure, variety of colors, touchpad , and so on will fall under the “‘product mix” part.

Bonus: Click here to learn the ABC’s of Product Marketing.

Regarding marketing, the term “price” refers to the cost we incur to receive the goods and services a business offers. This aspect of the marketing mix is significant as it influences a company’s ability to thrive and profit.

Determining the right price for a product is crucial for a company’s success. You consider several elements when pricing a good or service, including the list price, competition’s prices, available discounts, and the terms of sale.

The consumer pays the value to access or receive the product. Most marketing promotions stress the cost-effective pricing of the product. 

Pricing depends on the various costs incurred during the development phase and the profit margins desired by the stakeholders . 

You also need to take care of pricing strategies to make the marketing more effective . We will glance through the most effective pricing strategies quickly. 

Regarding pricing strategies, there are a few options to choose from.

Competitor-based pricing , also known as competitive pricing, involves positioning your products compared to your competitors. It can mean pricing your products lower, similarly, or even higher than your competition.

On the other hand, value-based pricing considers a customer’s willingness to pay. 

This strategy requires constant communication with different customer profiles, as their willingness to pay can vary based on their persona, location, and even offers.

Cost plus pricing , also referred to as markup pricing, is a straightforward approach to pricing as it involves marking up the cost of production based on the desired profit margin.

Price skimming involves starting with a high initial price for a new, highly anticipated, and innovative product with no competition and gradually lowering it over time.

Penetration pricing , on the other hand, starts with a low initial price point to attract buyers away from competitors. 

The strategy is to gradually raise the price after the product has gained a following and established itself in the market. Introducing a large audience to the product or brand can be effective.

Now you might wonder, “But how do I set the price?” We have got you covered. Keep reading. 

For setting the price, you should consider a few factors: 

• The worth of your product : From the user’s perspective, is it worth the money spent buying it? Is it equipped to serve most of the user’s needs ? And is it better than the other brands?
• Compare the market prices : If another brand’s product provides the same service as yours, it comes down to the price difference. The customer will buy the more cost-effective product, and marketing promotions attract the customer through price comparison. 
• Over or underpricing : You should price the product based on its features, the number of needs it fulfills, and the prices offered by competitors. Also, sometimes, the brand image aids the pricing. 

Therefore, a product shouldn’t be so overpriced that the customer won’t buy it . It also should be too underpriced that you don’t meet the profit margins even if the sales are high.

Example of Price

Apple is a classic example of a premium pricing strategy . 

That means the product’s prices are marked high owing to its high quality and value.

Place refers to the areas of distribution .

The “place” component of the marketing mix refers to where a company sells its products and provides its services. You consider location a crucial aspect of a marketing strategy, as consumers often research nearby options before making a purchase.

Selling your products in a location that appeals to your target customers is essential. There’s no point in offering products to people who have no interest in them. That’s why it’s crucial for a business to position and distribute its products in a place that is easily accessible to potential buyers or customers.

It’s important to note that “place” doesn’t just mean a physical store location. It also refers to the placement of products within a store. In simpler terms, the store displays the products and their presentation.

Distribution is the heart and soul of “place.” 

Distributing a product means spreading it out in the market so that many people can access it and purchase it. Regarding the marketing mix, “place” or “distribution” refers to the method by which a company gets its products in front of potential customers and into their hands.

It’s all about ensuring that a product is available to as many people as possible in many locations. A company increases its chances of making sales and generating revenue by doing so. In short, “place” or “distribution” in the marketing mix is all about getting a product in front of customers and making it accessible to them.

We will take a closer look at a few aspects which are a crucial part of “Place.” 

Distribution channels are the roads that products travel from being made to finally ending up in the hands of consumers. The primary objective of these channels is to get goods to sales outlets and into customers’ hands as quickly as possible.

Sometimes companies need a little extra help getting their products out there, and that’s where intermediaries come in. Intermediaries, also known as marketing intermediaries , act as go-betweens between the different stages in the distribution process.

Think of them as intermediaries who help to make the process of getting products to customers smoother and more convenient. By acting as intermediaries, they bridge the gap between the company and the customer, making it easier for customers to get their hands on the products they want.

Supply chain management is about ensuring that products flow smoothly from the start of the production process to the customer’s hands. It covers every process step, from taking raw materials and transforming them into final products to getting them in front of customers.

Physical distribution and logistics are about getting products from one place to another. It’s the nuts and bolts of getting products from the manufacturer to the customer, ensuring they’re delivered on time and in good condition. 

It’s a critical part of supply chain management , as it helps ensure that products are available to customers when they want them. An excellent physical distribution and logistics plan can mean the difference between a successful business and one that struggles.

Example of Place

Apple invests a lot in advertising, marketing, and appealing promotional techniques.

As marketing has evolved, we have also seen new, more innovative, and creative ads for the iPhone. They are now also involved i n social media marketing .

Promotion helps communicate with potential customers and promote product benefits to convince or attract them to buy.

It involves advertising , incentive, discounts, word of mouth, or anything that promotes a good image.

Promoting a product, activity, or brand among the target audience is what we call promotion in the marketing world. It’s about getting the word out there and making potential customers aware of what’s on offer. It’s about more than just increasing sales, though. 

Sometimes promotion focuses on building a company’s reputation and establishing positive relationships with the public.

Whether it’s to drive sales or improve reputation, promotion is a crucial part of marketing and must get noticed. Various tools get utilized for communicating and spreading awareness about a product or brand to reach customers.

Promotion mix is the combination of different elements that a company uses to promote its product or service to the target customers. The promotion mix has five essential components:

• Advertising : A paid form of non-personal communication through various media channels like TV, print, online, etc., to reach a large audience.
• Public Relations : Building and maintaining a positive image of a brand or company through media relations, events, and community outreach. It’s two-way communication between the company and the public.
• Personal Selling : One-to-one interaction between the salesperson and the customer to promote the product or service. It’s a more direct and personalized form of promotion.
• Sales Promotion : Short-term incentives like discounts, free trials, or contests to encourage customers to make a purchase.
• Direct Marketing : A form of promotion involves direct communication with customers through mail, email, or telemarketing to promote a product or service.

Example of Promotion

You can easily find iPhones on online and offline platforms.

They are always available on giant e-commerce stores like Amazon

Anyone who interacts with customers or delivers your offering falls into this critical category.

It includes your employees, suppliers, partners, and other associates who customers may encounter. These individuals are essentially representatives of your brand and business. The experience they provide reflects on your company and can influence perceptions of your product or service.

Ensuring all personnel properly get trained to understand your mission, values, and the type of customer experience you want to deliver is crucial. They should believe in your goals and feel empowered to help achieve them. When recruiting new team members, finding people with the right skills and personality fit for their roles is vital.

A significant 50% of consumers are inclined to switch to a competitor following a single negative experience, which rises to 80% after enduring multiple unfavorable encounters. In today’s customer-centric market, providing excellent customer service is imperative for any brand aiming to thrive and retain its customer base.

The people behind it ultimately define a business. Prioritizing staff development and creating a culture where all feel valued will translate to improved customer relations. With the right people strategies, your human resources can become a significant asset that differentiates your offering and builds loyal advocates for your business.

Example of People

Brands like Nike leverage influencers and athletes to connect with their audience, associating their products with renowned personalities.

Physical Evidence

Within any customer experience or transaction lies tangible reminders and proofs of the interaction. These physical artifacts that remain illustrate the product or service component of the marketing mix.

For a hair salon, it’s the new hairstyle customers leave with. For an online course creator, it’s the PDF certificate of completion or notes file downloaded. A retailer provides customers with bags, tags, or packaging bearing the company logo.

Consistency across these materials is essential to reinforce branding throughout the buyer journey. Transactional items such as receipts, emails, and thank you cards allow one to leave a final impression.

The goal is for these tangible reminders to complement the overall experience in a way that keeps the brand top of mind. Businesses should strive for cohesion and quality from the product to accompanying materials at each touchpoint. A unified physical presence reinforces the brand message and solidifies the customer relationship.

Example of Physical Evidence

When a luxury perfume brand presents its fragrance in an intricately designed bottle housed in sophisticated packaging, it is physical evidence. The packaging visually represents the brand’s quality and exclusivity.

Process is a key part of the marketing mix. It involves crafting steps that provide an optimal customer experience from initial contact through purchase and beyond. Carefully designed processes ensure consistency at each touchpoint.

Businesses should map out how prospects progress through each stage, starting with lead generation. Clear intake, demonstrations, proposals, contracts, and onboarding guidelines allow for seamless handoffs. Support after the sale is also crucial to provide ongoing value.

Customers appreciate processes tailored to their individual needs. Even amazing products can get undercut by friction at any stage. Tools like CRMs and analytics help streamline workflows while deepening understanding of what resonates. Process improvements may involve automation through AI assistants or personalized communications.

The goal is frictionless interactions from start to finish. Marketers should consider reaction times, scheduling efficiencies, payment processing, training, and more. Gathering positive reviews further strengthens the relationship.

Example of Process

McDonald’s exemplifies the “Process” element through its streamlined and efficient ordering system. Customers can order at the counter, drive-thru, or through mobile apps. The standardized order-taking, meal preparation, and delivery process ensures consistency and quick service.

As marketing has evolved, the focus has shifted from business to customer . Companies now resort to a more customer-centric approach . 

That is why the four Cs have taken over the four Ps since 1990 , especially in digital marketing. 

The four C’s are Customer, Cost, Convenience, and Communication .

They are the essential tools for any successful marketing strategy.

The customer is the center of attention in any excellent marketing strategy.

Customer value is everything to an organization; satisfaction is its primary goal. Organizations should focus on solving customer problems, needs, and demands.

Bonus: Access our Guide to implementing a killer Customer-led Product Strategy.

The cost of goods sold can refer to the total amount you’ve paid (including materials and labor) to manufacture, distribute, and market a product.

It may also include the expense of making trade-offs for consumers, such as delaying their next purchase or feeling guilty about not purchasing anything at all.

Convenience

Convenience is also an essential requirement for making purchasing decisions.

Organizations must provide comfort to buyers by offering user-friendly policies regarding selection, price, delivery, and so on.

These primary factors influence convenience, customer acquisition cost , customer service , product features , and information availability.

Communication

Communication helps acquire customer feedback that may alter the business’s marketing strategy.

You can do this in marketing, advertising, emails, media appearances, and so on.

Define communication with your customer using surveys with the top product management software . You can also tailor your audience to your needs .

These four c’s are the most important factors affecting customer value and satisfaction and establishing a market presence. Organizations can build long-term success if they apply these .

What Is the Process of Finding Your Optimal Marketing Mix?

Every business is unique, and even those within the same industry can have vastly different marketing approaches. 

Crafting an effective marketing strategy is a blend of both science and art. 

Businesses that see success with their marketing campaigns across multiple channels have mastered the art of combining tactics. That is with building a genuine customer base that eagerly anticipates their products or services.

However, the challenge lies in finding the right combination of tactics. With so many options available, it can take time to pinpoint the exact platform, strategy, or tactic that will lead to the coveted outcome of online success. Unfortunately, many businesses need help finding the winning formula.

In this article, we want to share the secrets of how businesses that excel at identifying the ideal marketing mix go about putting everything together. 

Step 1: Study Your Competitors

Before formulating your marketing strategy, it’s wise to look at your competitors. Analyze what they’re doing well and what they could be doing better. 

Take note of the things you like about their approach and identify areas you think you could do better. By doing this, you can avoid reinventing the wheel and save time, effort, and money as you create your marketing plan.

Step 2: Define Your Ideal Customer

Gone are the days when companies randomly target a group of people with their content marketing. Today, companies know exactly who they’re trying to reach and create personas to cater to their content.

To effectively market your business, you must identify who needs your product or service and what appeals to them. This way, you can create detailed personas that will help you understand your target audience.

Step 3: Set Specific Goals

Once you recognize your target audience, it’s time to set specific goals. These goals could be monetary, data-driven, or a combination of both. 

The key is to attract a specific type of customer and be able to measure the results. With measurement, you will know if your marketing efforts are having the desired impact.

Step 4: Optimize Your Acquisition Strategy

With specific goals and a clear understanding of your ideal customer, it’s time to optimize your acquisition strategy. 

For example, suppose your data shows that your target audience is female, 28-34, from the midwest, and married. In that case, you need to target platforms that reach this group. 

It could be Facebook’s customizable targeting options or an organic growth strategy on Pinterest. The goal is to reach your customer on the platforms they’re already using.

Step 5: Determine Budgetary Limits

With your marketing roadmap established, it’s time to determine each platform’s budget allocation. You can split your budget evenly among several platforms and adjust as needed or concentrate on the best-performing media. The key is to be flexible and adapt your strategy as you collect data.

Step 6: Test, Modify and Review the Results

Regardless of your initial testing results, it’s essential to be adaptive and willing to make changes. Over time, you’ll be able to paint a clear picture of what success looks like and adjust your marketing strategy accordingly. 

Feel free to cut non-performers and increase the budget for your best campaigns. The key to success is continuously testing and tweaking your approach, using different platforms, targeting options, and being open to making significant changes if necessary.

The marketing mix is a blanket term that covers all the actions implemented for sales enhancement and brand promotion . It is a ‘ mix ‘of factors that affect product marketing . 

The product mix is a sales term that refers to a product line . A product line means a group of products in a category you market together to increase sales volume.

Ambit and Scope

The marketing mix is a broad term encompassing product, price, promotion, place, product development , and product life cycle . 

On the contrary, the product mix is a much narrower term defining individual product lines . The product mix is a subset of the marketing mix that contains a product line within the marketing department’s control.

The marketing mix can change over time. This concept evolves as per the changing circumstances, market, and customer needs . 

On the other hand, the product mix is static . The product mix is limited to the company’s product line. Therefore, the variability is much lower here.

The marketing mix has multiple constituents . Hence, it has a more strategic point of view .

The product mix has far less impact than the marketing mix regarding importance and exposure. This is due to its limited scope since it deals only with a single component.

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Marketing relates to all the activities involved in enhancing the product’s sales. Promotion is one aspect of marketing, which means spreading the word about the product and its benefits to potential customers.

You can use the four Ps of marketing at any time in the business. At the beginning of your venture, you can use it to assess and evaluate planning and can even use it to optimize sales and track growth.

Product is the very first component of the marketing mix as it provides the functionality, which sets the basis for other Ps of the marketing mix. Product is the key to connecting with customers and further generating sales.

The Marketing Mix helps businesses determine their marketing strategy, by guiding decisions on product, price, promotion, and place. It influences targeting, segmentation, and positioning, making it a crucial first step in creating a marketing plan. All mix elements interact and influence each other, impacting a business’s ability to sell its product or service at a profitable price.

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The 4 Ps Of Marketing

Updated: Jun 18, 2024, 8:52am

Table of Contents

What are the four ps of marketing, the first p: product, the second p: price, the third p: place, the fourth p: promotion, examples of the four ps in marketing, how to use the 4 ps of marketing, what’s the difference between the four ps and the seven ps, frequently asked questions (faqs).

The four Ps of marketing—product, price, place and promotion—serve as a framework for marketing success. Sometimes referred to as the marketing mix, the four Ps help guide businesses in the creation of winning business ideas that deliver what customers want, where and how they want it at a price that’s most appealing.

Building a solid marketing plan structured around the four Ps can help you increase awareness for your brand and its products or services, drive sales and achieve overall stronger bottom-line results.

The idea of a marketing mix was first popularized in the 1950s by Neil Bordon, a Professor of Advertising at Harvard. Drawing from Bordon’s work along with the work of other prominent marketing and business leaders, E. Jerome McCarthy introduced the four Ps of marketing in his book Basic Marketing: A Managerial Approach .

You may recall from your Intro to Marketing college course that product, price, place and promotion are the four Ps of marketing. While the four Ps have been around for decades, the concept is just as relevant to businesses today as it was when the four Ps were first introduced.

The first P in the four Ps of marketing is product. A product can come in a variety of forms, such as a physical product, digital product, service, event or experience. The product is the actual item you are selling; the features or attributes you include or build into your products can help you differentiate your offerings from your competitors.

There are many dimensions that you must consider when deciding which products to develop and sell. Does your product solve a problem? Or does the product fulfill consumers’ wants and desires? Why would someone want to buy it? Product quality, design, packaging, variety, adaptability, sustainability, safety and production must all be considered.

Your marketing plan should outline the key features of your product, what makes it unique and who your target audience is for that product. This will help ensure you meet the needs and desires of your ideal audience.

The second P in the four Ps of marketing is price. Naturally, you need to price your products in a way that allows you to operate profitably. However, pricing is far more complex than calculating the cost of goods and adding on an additional amount that will let you meet your desired profit margin. How you price a product will convey its relative value and quality.

Walmart uses low-cost pricing to attract a broad audience of value-driven shoppers, while Saks Fifth Avenue sustains much higher prices, which is common among luxury goods sellers who target wealthy buyers. If you decide to serve different types of customers, you’ll need to develop a customer segmentation strategy , which will include pricing strategies for each segment you serve.

There’s also a psychological factor in product pricing, which is why products are often priced at $9.99 rather than $10. Products with prices ending in .99 seem cheaper than those that end in zero, and hence more shoppers are drawn to the $9.99 price tag.

The third P in the four Ps of marketing is place, which refers to the channels or locations where you sell your products and services.

You may want to sell products via a brick-and-mortar store or at less permanent physical locations, such as special events, fairs, pop-ups or temporary markets. Or, you may prefer to list your products for sale via an e-commerce software —by either building your own e-commerce website or by selling through popular online marketplaces such as eBay, Amazon or Etsy .

Where you sell your products will influence how you manage product inventory and product transportation or shipping. Location also influences the relative size of your reachable market. Some businesses find they can optimize sales by offering goods and services via multiple outlets.

The fourth P in the four Ps of marketing is promotion, which is how you get the word out about your products and what tactics you use to convert prospects into buyers. Your promotion strategy may include advertising, public relations, social media marketing, content marketing, direct marketing and influencer marketing, as well as the discounts and special offers you extend to generate sales.

Even the best product in the world doesn’t stand a chance if you don’t have a strong promotion strategy behind it. While there are some promotional tactics that can be done on a shoestring budget—such as do-it-yourself blogging and social media—others can be costly. It’s important to factor anticipated promotional costs into your product pricing strategy.

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Understanding the four Ps is the first step in creating a strong marketing mix. Knowing how to execute the four Ps correctly is key to achieving success. Let’s look at examples of how different organizations use the four Ps in different ways.

Examples of Product

The music industry offers many examples of how related products are sold in different formats––from physical products to digital downloads to digital streaming to live events.

While compact discs—a physical product—are no longer the norm, they are still available in some brick-and-mortar locations as well as in online marketplaces. Vinyl albums are making a comeback among certain audiophiles, which is a reminder to consider your audience’s specific interests when designing your product.

The popularity of various product formats can change as new technologies emerge. There was a time when you needed an Apple iPod or similar device (i.e., “product”) to listen to music online. Now you can use just about any internet-enabled device to purchase music via digital downloads, or you can subscribe to popular subscription-based audio streaming sites such as Spotify, Pandora and Apple Music, which grant you access to millions of songs.

Live performances are another popular music product—just ask any Taylor Swift mega-fan about the magic of scoring a ticket to one of her sold-out concerts. Of course, when you attend a live event, you will find there is plenty of physical music merchandise to purchase—from T-shirts to pins to caps and hats to collectible programs.

Examples of Price

You can buy a watch for under $100 or spend $100,000 or more; both watches will tell you the time. The price a person is willing to pay for a watch says a lot about their means, interests, style and quality preferences and what they value in a timepiece.

Chanel, Dolce & Gabbana, Versace and Armani all sell high-priced clothes, jewelry and accessories. Yet, what these brands are actually selling is a luxurious lifestyle. The premium prices these luxury brands charge reflect quality and exclusivity; their target audience has the means to purchase the products and the desire to live a rich life.

Old Navy, meanwhile, targets budget-conscious shoppers with its everyday modest prices and regular promotional discounts. Dollar Tree is an example of a brand that appeals to lower-income consumers and those seeking extreme values. Dollar Tree, which has had to raise average product prices up from $1.00 to $1.25, has seen profits surge in recent years.

No one magic price range will produce exceptional results for all product lines. When pricing your product, you must consider not only the cost to produce the item but who your ideal buyer is and what they’re currently spending on the products they purchase.

Examples of Place

Today’s businesses have more options and flexibility in places to sell their goods and services. The best point-of-sale (POS) systems and credit card readers let you accept payments from nearly anywhere.

You used to need a brick-and-mortar building to open a restaurant, and now budding restaurateurs and bakers can sell their edible creations via food trucks, pop-up events or shared kitchens.

Artists and crafters can sell their goods via their own galleries or display their works at others’ galleries. Artists also sell art online via their own websites or popular online marketplaces such as Creative Market, Etsy, Amazon Handmade and Fine Art America. Art and craft fairs are growing more popular, as are festivals and pop-up markets that invite artisans to showcase their work.

Many businesses start by selling their products online or via a retail location and then expand to other outlets once sales grow. A multi-location strategy is often the best way to boost your product sales.

Examples of Promotion

If you want your business to be successful, you must find ways to promote your business effectively. Some promotional efforts—such as national paid advertising—require a relatively large promotional budget, which is feasible for mega-brands like McDonald’s, Amazon and Toyota, but can be difficult for smaller businesses.

Examples of promotions that work for small businesses include creating a business website where you offer discount coupons and promote current sales. You can also ask customers for their email addresses and use email marketing software for ongoing business promotion. If you have a brick-and-mortar business, consider placing attention-grabbing banners, flags or a blow-up character in front of your business to draw the attention of those passing by.

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Other types of promotions can work for a wide array of businesses, such as customer loyalty programs. Kohl’s loyalty program, called Kohl’s Rewards, gives members cash back each month based on their spending. Since Kohl’s requires you to submit your contact information to join the program, the company can use that information to regularly email you to tell you about current sales and new products.

Think of the four Ps of marketing as your road map for introducing and launching successful products and services. Your marketing strategy should include extensive details on how you intend to approach each of the four Ps.

For example, when developing your product, consider what’s already available and what features you can embed in your product to serve a need or solve a problem better than any other available product. How will your product stand out in a crowded marketplace? Also, think about who your ideal audience is and what they value most.

When developing your pricing strategy, don’t just consider the price point where you make a sufficient margin. Be sure you understand your ideal customer’s sensitivity to pricing. Is this a luxury item? Then deliver the quality that appeals to high-end buyers at a price point that affirms luxury and exclusivity. Are you providing the best value on the market? Then use a value-based pricing model.

Placement is also key. Where does your target market already go to purchase similar products—online, in specialty retail stores, big-box stores, discount stores or elsewhere? It’s important to place your products where your ideal clients already shop, which may mean placing them in multiple sales channels.

Finally, give special attention to how you promote your products. Your promotion strategies must be compelling and give you maximum reach for your promotional dollars.

How and where you choose to promote your product needs to align with the type of customer you are pursuing. The promotional choices you’ll select for more traditional middle-aged suburbanites will be considerably different than those you’d use to appeal to members of Generation Z. Always make sure your advertising choices and messaging align with who you’re targeting.

While the four Ps came first, you may have also heard of the seven Ps of marketing, which rose in popularity in the 70s and 80s. The seven Ps include the original four Ps plus people, process and physical evidence.

The fifth P refers to the people within your organization who work together to create an exceptional experience for your customers. You can differentiate your business from competitors by creating a customer-centric culture that consistently delivers a memorable, high-quality customer experience.

If you are a service-based business, it’s vital that you pay close attention to the people you hire to interact with your customers. Bad reviews on Google Reviews or Yelp can put you out of business.

The sixth P, process, is how you get your product to the customer. Is it easy and seamless to purchase from you, or are there barriers that make the buying experience difficult or issues with your shipping or delivery system that negatively impact the experience?

For example, did you ship a product to an environmentally conscious customer via a styrofoam container—or did you use sustainable, eco-friendly shipping and packaging methods? Make sure the processes you use make sense for what you’re selling and who you’re selling to.

Physical Evidence

The seventh P, physical evidence, involves things that enhance or detract from the shopping or purchase experience. Physical evidence includes branding and packaging.

When a physical environment is involved—such as in a retail store, restaurant or service office—physical evidence includes the layout, ambiance and overall aesthetics of the physical location that contribute to the impression you make on prospects and customers.

What are the seven Ps of marketing?

The seven Ps of marketing—sometimes referred to as the marketing mix—include product, place, price, promotion, people, physical evidence and process.

Which of the four Ps of marketing is the most important?

Many consider the product to be the most important of the four Ps of marketing. That being said, even excellent products can only be successful if a business strategically deploys all vital aspects of the marketing mix, including the remaining three Ps: place, promotion and price.

What are the marketing four Ps and four Cs?

The four Ps of marketing are product, place, price and promotion. In an article in Advertising Age , Bob Lauterborn introduced the four Cs, which he stated was a more customer-centric marketing model. The four Cs are consumer, cost, convenience and communication.

What is the purpose of the four Ps of marketing?

The purpose of the four Ps of marketing is to help businesses create a viable, complete strategy for selling goods and services. The four Ps are essential pillars for success that can help you drive better results when launching any product or service.

What’s the difference between the four Ps and the seven Ps of marketing?

The seven Ps include the original four Ps—product, price, place and promotion—plus people, process and physical evidence.

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Janette Novak is a freelance journalist and consultant who specializes in teaching online business and small business marketing. Previously, Janette owned a boutique marketing agency and served as a Chief Marketing Officer for a leading professional training services provider.

• Marketing Guide: Definition, Marketing Mix, Best Practices

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Everywhere around us, we can witness signs of marketing. From the small flyer being passed around on subway stations to the large, blinking LED screens in major streets and intersections. That is marketing at work. Even a simple conversation between two people can involve marketing. Did you see that musician holding a specific product in one of his music videos? That, too, is a form of marketing.

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With this super in-depth article, we aim to gain a deeper understanding of what marketing is all about , and the best practices for successful marketing efforts .

WHAT IS MARKETING?

If we are going to use the official definition provided by The Chartered Institute of Marketing , marketing is “the management process responsible for identifying, anticipating and satisfying customer requirements profitably”.

A simple definition of marketing refers to it as the action or business of buying, selling and promoting products, services or brands, including the act of advertising and conducting market research, as well as delivering the products to the consumers or the end users. When a company states its plans to build relationships with its customers through various activities, that is already a way of saying that the company’s marketing efforts are underway.

The core of marketing is getting a full understanding of what the customers want and what they need, then using that information to sell the right products. Ultimately, the goal of marketing is to match the products and services of a company to the end users who need them and, in the process, earn profits for the company. Through marketing, they will be able to put the right product in the right place , at the right time , and with the right price . We will understand this well when we touch on the 4 Ps of marketing.

Marketing vs. Selling

Often, marketing is thought to be the same as selling. To a certain extent, they may be similar, but they are actually two different things. According to Harvard Business School’s Theodore C. Levitt, selling is focused on the tricks, techniques and tactics employed in order to convince people to spend their money in buying the product. Marketing goes deeper than that, because it goes into the details of the exchange of cash and product. What drove the customers to spend their money? What interests them?

Selling concerns itself with getting the customers to pay for the product; marketing focuses on developing a demand for that product, leading the customers to part with their cash for it. Think of marketing as the big picture, and selling just a part of it . Marketing encompasses the product ideas and design, the brand itself, the communication of the product and the brand to the consumers, and even market research and consumer psychology.

To illustrate, let us look at the case of Apple and its products. If you think about it, the world really did not know that it needed the iPod. What Apple did through marketing is to stir interest for that product and create a demand for it. They created the product, and set prices for it, depending on the capability and preferences of the target customers.

The company then brought these products to its Apple stores and other places where Apple products are sold. Through market research, they have identified the areas where demand for their product is high, and established stores and outlets in those places. As for its promotional strategy, Apple employed as many channels as it could, starting with unveiling the products and their capabilities at tech events. It also spent a lot on internet advertising, as well as advertising on traditional media, such as print and broadcast.

Importance and Role of Marketing

When assessing the success factors of businesses, there is a strong probability of the list being very long. Ask marketers, however, and they will instantly claim that marketing is the lifeblood of a business , serving as the stimulus on whether it will be profitable or not. Other business-minded individuals will rarely dare to argue with this logic, considering how “business success” is closely connected with “profitability”.

Today, everything is marketed. Not just products, services, or brands. Even people are subject to marketing. Author, consultant and professor of marketing Philip Kotler, for example, pointed out how personalities such as Madonna, Aerosmith, Michael Jordan, Oprah Winfrey and the Rolling Stones, are successful in large part because of very good marketing.

Learn more about how Steve Jobs thought about marketing Apple and how to fight competition.

It is possible that a business may have an excellent product, sell it in convenient and strategic locations, and still not be generating the expected profits. It won’t be surprising if after a short while, the business goes under or declares bankruptcy .

This is not a strange phenomenon. Many businesses fail, even if they have feasible offerings. Most of the time, the problem lies in the company’s marketing, or the lack of it.

Why is marketing important for businesses? Let us go over each one of them.

#1 Increase product, brand and company awareness.

The first step that businesses should take is to get the word out. How else would your target customers know about your company, and the products or services that you offer, if you do not make an effort to reach out to them and let them know?

To create awareness about your product or service, your business, or your brand, marketing strategies will come in handy.

Put yourself in the shoes of a potential customer who is browsing the internet and checking her social media accounts. What would happen if her eyes fall on an ad on the side of the page, talking about a specific company that sells a service that she has been looking for? She will obviously be interested in knowing more about the service. If the company did not take the initiative to include internet or social media marketing in its marketing strategies, chances are that this customer would never have known about the company’s existence.

This also works even for existing customers. A customer may have been patronizing the products of a specific brand for a long time. However, the company still makes it a point to include its existing and loyal customers in its information campaigns on new products. Of course, the customer will feel more inclined to stay loyal to the company – and buy more of its products – with the knowledge that he is given priority when it comes to information about the company’s offerings.

#2 Increase sales and profit.

Once a potential customer is made aware of a product, there is a greater likelihood that she will check out the offerings of the company. If she likes what she is seeing, she will willingly part with some money to buy the product or service being offered.

This translates to more sales for the company and, consequently, more profit. The reason why marketers do what they do is to convince more people to spend money on a product or a brand. For most businesses, that is their endgame: to make profit. But they cannot rely entirely on the merits of the product or service to convince people to buy. Some marketing techniques have to be employed to give the potential buyers that push and shell out their hard-earned money.

When marketing strategies are employed consistently, word about the product or service will also spread, and so will the possibilities of increasing sales and profits.

#3 Improve company or business reputation.

Have you ever wondered why some businesses lasted for decades while others can barely go past the one or two-year mark? The most likely reason is the reputation of the company or the brand.

With the help of marketing, a company is better able to build its reputation among customers. It is not focused solely on building brand awareness and recognition, or improving product recall. It can also put the company in a better and more positive light, further inspiring loyalty from the buying public.

There is a perception that, as long as a company produces great products that are able to satisfy the needs and expectations of the customers, they will be able to build a good reputation. That is correct, but only to a certain extent. There is still a need to employ marketing techniques to ensure that the good reputation is solidified.

Companies’ marketing strategies that are geared towards improving a company’s reputation include active involvement in community programs, increased presence in civic activities, and continuous information campaigns.

#4 Foster healthy competition.

No matter how annoyed businesses can be with their competitors or rivals, it is a fact that competition is still good for business. It encourages businesses to do better and improve their offerings, and will keep them on their toes. However, there is healthy competition and there is unhealthy competition.

Unfortunately, marketing can be used in both cases. Some unscrupulous marketers employ underhanded marketing tactics to undermine the competition. However, when done right, marketing is a very effective tool for promoting healthy competition.

Through marketing, small businesses have a chance of entering a market that may have been dominated by one, two or three major players for a long time. Marketing levels the playing field, because it gives these small businesses a chance to fight for space in that market. The larger companies, on the other hand, will also use marketing to hold on to their status or spot in the market. This healthy competition will also be contributory to the growth of the businesses, and the industry as a whole.

Interested in learning how to market using Periscope ? Read this!

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MARKETING MIX AND ITS ELEMENTS

It was in 1953 when the term “marketing mix” was first used, and it was courtesy of Neil Borden, then president of the American Marketing Association. Marketing mix refers to the business tool used by marketers in determining a product or service being offered by a brand or a company.

Now, we cannot speak of marketing mix without touching on the 4 Ps, identified by E. Jerome McCarthy, and which have become almost canon among marketers as the “4 Ps of marketing” or more specifically, the “4 Ps of the marketing mix”.

The 4 Ps of the Marketing Mix

Marketing involves the identification, selection, and development of a product . This does not limit us to just products, because it also covers services provided by businesses. It even covers online businesses that offer online courses or digital products.

This answers the question: what are the goods or services that the business intends to sell, and get paid for? Is the product good, and worth spending money on? Once the product or service has been identified, you have to look beneath the surface.

Technical aspects of the product

• What are the features or specifications of the product you are going to sell? What are the sizes, colors, and other relevant specifications or characteristics?
• Which features of the product or service satisfy or meet the identified needs of the customer?
• What is the name of the product?
• Are there after-sales services and warranties attached to the product?

The customers

• What value does the customer expect from the product?
• What needs of the customer does the product or service satisfy?
• How will the customers use the product or service?
• Where will the customers be able to make use of the product or service?
• Is the product or service a good fit for the customer?
• What are the buying habits of the customers?
• Where are the customers located geographically?

Product marketability

• Can the product be marketed on its own, or can it be promoted along with another product?
• What differentiates the product from the one sold by your competitors?
• Are there products in the market that are similar to yours, enough for them to be treated as “substitutes” for your product?
• How will the branding of the product go?

The price of the product is also one of the elements that must be determined under marketing.

Value to the customer

• What is the perceived value of the product or service to the buyer?
• What is the level of price sensitivity of the customer? How much should you increase or decrease your product’s or service’s price before the customer’s decision on whether to buy or not changes.
• How much are the customers willing to pay for the product or service?
• What is the customers’ financial capability? It is one thing to be willing to pay this much, but can they actually afford to pay that amount?

Price points

• What are the price points for the product or service in the market? In the specific target market?
• How much is the product going to sell for?
• How much is the cost to the company? This will also help in determining how much the product would be sold for in order to make a profit.
• Cost to buy the product , in case of businesses where the products are purchased and subsequently sold in their unchanged or unaltered form to customers.
• Cost to manufacture , including cost of direct and indirect materials, direct and indirect labor, and overhead.
• Expenses , including general, administrative and selling expenses, as well as distribution expenses and logistics costs.
• Marketing costs directly traceable to the product.

Price considerations

• Are there discounts that can be offered by the company to consumers? To commercial buyers or trade customers?
• What are the factors considered in setting the discounts?
• Scenario #1: Setting the price too high may give the impression that the product is of superior quality, and if that is the case, there are customers who will not mind paying a premium for it. However, the catch is that not all the customers may be financially capable of meeting the high price that was set.
• Scenario #2: Setting the price too low may give the impression that the product is of very low or inferior quality. As a result, most customers might opt out of buying, since they are looking for the best value for their money.

Competitor’s prices

• At what price do your competitors sell their products?
• How is your price point compared to that of your competitors?

Look at the following pricing strategies you can use in your marketing efforts.

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Place refers to the location of the end user of the product, and marketing also involves getting the product to the customer. Determination and selection of the best distribution channel to deliver or bring the product to the place of the customer is also another element of marketing.

The most common options include physical stores, online stores and third-party distributors. The considerations that must be noted are:

Budget constraints

• How much can the company spend in its marketing efforts?

Location or access points

• Where will the customers generally look when they need the product or service?
• What are the kinds of access points or locations? If it is a physical store, what kind of a store will it be? Will it be located in a mall or a supermarket, or will it be in an exclusive boutique? If it will be sold online, will the company sell it in its own website, or will it enter into partnerships with online malls or stockists? If it is through direct selling, will they make use of a catalogue, or will they recruit selling staff for that specific purpose?

Distribution channels

• What distribution channels are available to the company?
• How can the company access the right distribution channels? Will they have to attend trade fairs and tech events? Will there be a need to send samples to them?

Manpower needs

• Will there be a need for a specialized sales force? If so, how many will be needed?
• How will the sales force be managed, and who will manage it?
• How will the members of the sales force be recruited?

Competitor behavior

• What steps do the competitors take in choosing the places where they will sell their products or services?

Finally, the last P pertains to the development and subsequent implementation of a promotional strategy to sell the product. We are talking here of the marketing campaign of the company that will be used to communicate to the target audience about the product. How will you make your target market aware of your product or service, and what they have to offer?

The most common promotional activities employed by businesses include:

• Advertising through traditional and non-traditional media
• Personal selling or direct marketing
• Sales promotions
• Public relations activities
• Sponsorships
• Guerilla marketing

When evaluating a promotional strategy for your product, you have to consider the following questions:

Your marketing message

• What marketing message do you want to convey to your target market?

Delivery of your marketing message

• Where can you put up or set up your marketing messages so they can reach your target market easily?
• When is the best time to get your marketing messages across to your target market?
• What are the promotional activities that are likely to enable you to reach your target audience?
• Which among the promotional activities will give you more reach to your target market?
• Which time of the year is best to carry out your promotional activities? Consider whether the market is subject to seasonality – if there are peak seasons or slow seasons for your product or service.
• What possible interventions or issues may affect the timing of your promotional activities?

Competitors’ promotions

• What are the promotional strategies of your competitors?
• How do your competitors’ promotional strategies affect yours?

The 4 Ps have been used for such a long time that it is almost institutionalized knowledge. However, there are several arguments against it, and one of the most pervasive ones is on how the 4 Ps are taken solely from the point of view of the seller or producer. This is true enough, and we cannot blame marketers and producers for taking this stance. They are in business, after all, and they want to make profit for themselves.

This argument gave rise to other schools of thought about the elements of the marketing mix, and one of them is the 4 Cs.

Take a short break and learn from Brian Tracy what he has learned about marketing strategy .

The 4 Cs of Marketing Mix

There is another approach formulated by University of North Carolina’s advertising professor Bob Lauterborn . He proposed the 4 Cs, aiming to replace the 4 Ps.

Unlike the 4 Ps, the 4 Cs takes the perspective of the consumer , who is considered to be at the heart of the whole process. It is their needs and wants that must be satisfied, it is their money that will be paid to the producers or sellers, and it is them that the businesses will try to communicate their value offerings to. It only makes sense, to see things from where these people stand. And that is where the 4 Cs come in.

Instead of the Product, the emphasis will be on the Consumer, specifically his wants and needs. This is under the assumption that a company cannot simply create products and sell them to the market, expecting the latter to buy them all up. The principle of “build it and they will come” may work, but only in very isolated cases. More often than not, more planning is required about the suitability of a product before it can be developed for the market.

Therefore, there is still a need for businesses to conduct a study on what their consumers’ wants and needs are. Once these have been identified, they can develop a product around this demand, so that they can offer the customers a product or service that they will definitely want to pay for.

Instead of Price, the emphasis is on the Cost to satisfy the need or wants of the consumers. By determining the cost, the selling price may also be determined. There are some businesses that operate under the assumption that, if they sell their product at the lowest price, they will be able to get ahead of the competition. Then the scenario would turn into one where businesses will try to beat others by bringing their price low, without minding the actual cost they incurred to satisfy the consumers. This is not good for the company’s bottomline and profitability.

We have already touched on the cost considerations that will help in the determination of a selling price that will bring in profits to the business.

C onvenience

More than just considering the place or location where the product or service will be sold, the 4Cs put more emphasis on convenience on the part of the consumers to buy the product or service. A place may have been identified, but will it be somewhere that customers can easily and conveniently go to in order to get their hands on the product or service?

These days, online shopping and web stores are becoming bigger, because they have hit on the area that more and more consumers are becoming concerned with: convenience. It is more convenient for them to shop or buy over the internet, since they do not have to travel or step out of the comfort of their own homes to procure the items they need. The payment options offered by these online stores are also more convenient, using credit cards and other automated forms of payment, because customers no longer have to carry around cash to pay for their purchases.

C ommunication

Instead of promotion, marketers pay more attention to communication. Purely promotion is seen as manipulative, since it emanates solely from the seller or developer of the product. Communication, on the other hand, denotes a two-way relationship, where information flows in a give-and-take manner between the seller and the buyer.

In order to accomplish this, businesses make it a point to make themselves accessible to their customers. Giving a business address and a telephone number is no longer enough. They make use of as much contact information as they have, such as web URLs, contact forms in their official websites, and email addresses.

Learn more about marketing from marketing guru Philip Kotler in this awesome speech.

Importance of the Marketing Mix

If you look at the 4 Ps of the marketing mix , or even the 4 Cs , you cannot pick only one or two as the most important elements. After all, all the elements affect and influence each other. All four are present in order for a profitable venture to take place.

Let us say that a business has succeeded, thanks to its marketing strategy. This business should not be complacent at the first sign of success. It must work harder in order to sustain that success, and achieve growth. Continuity of the success of the business is very important, which is where the marketing mix comes in.

• Marketing mix maximizes the continued success of business operations. Overall, businesses want their operations to continue smoothly and without any major snags. The product lifecycle will go on, uninterrupted, and the entire marketing process will accomplish what it was meant to achieve. The information afforded by the marketing mix allows the company to make the necessary adjustments in its 4 Ps when it realizes that something is working. A company may have been selling a product at a specific price at first, but thanks to using the marketing mix, it will be able to make the necessary adjustments once it realizes that the price is too high or too low to help maximize income. In response, the company can adjust its pricing accordingly.
• Marketing mix maximizes the returns earned by the company in the market. The right combination and execution of the 4 Ps will help ensure that the company earns profits, and that the profits are kept at the maximum level, given the circumstances.
• Marketing mix pushes a company to take responsibility for its claims on its products or services. In its advertisements and marketing campaigns, a business makes claims regarding the benefits that customers can obtain from their products or services. For a business to be successful, there must be a way to ensure that these claims are not just empty words. The company should be able to back up these claims, and the marketing mix will help them do just that.

TYPES OF MARKETING CHANNELS

There are several ways in which producers or manufacturers can bring their products and services to end users or consumers. Rather than just naming distribution channels or the physical locations where the products or services are made available to the customers, we need to talk about marketing channels, or the routes that these goods can take to reach the customers.

As per definition, a marketing channel is a set of activities or actions that are carried out to transfer the ownership of products and physically move them from production to consumption. Thus, it involves all the parties and activities involved from the time the product started undergoing production, all the way to when it is brought to the end user for consumption or usage.

The 4 types of marketing channels are discussed below:

1. Direct selling

This is when the product or service is directly marketed and sold to the consumer, away from the stores, or any retail location, of the business.

The traditional method of direct selling is peddling, where the seller will personally go to the buyer to peddle his goods. Fortunately, businesses are no longer stuck with that single option.

Today, sellers perform one-on-one or group demonstrations to the consumers, often through sales agents and representatives. They even go as far as contacting the potential customers personally in order to arrange a time and a place to meet, in order for them to market and sell the products.

Selling through the internet is another modern form of direct selling. Online stores send emails to potential customers, making their pitches and advertising their products. The customer will in the process learn more about the product, and make the decision on whether to buy or not.

  Pros of Direct Selling :

• It offers convenience for customers. In some case, service benefits also come with the act of direct selling. Customers benefit from getting personal demonstrations from the sellers, and they can probe the sellers about the features of the products. Another service benefit in direct selling is that the products are brought to them instead of them going to the seller’s store to purchase the goods.
• It does not require a lot of capital. On the part of the sellers, they do not have to maintain inventory or make cash commitments in order to get started. In fact, a one-man enterprise can start a direct selling business, which means he can save from paying salaries and wages to others, especially when he is just starting out.

2. Indirect selling

This is what you call the process where selling is made through intermediaries or middlemen. An intermediary is essentially a go-between, a third-party that serves as a conduit between two parties in trade.

The most recognizable intermediaries in business today are wholesalers and retailers. A conventional setup would involve wholesales buying products in bulk from producers or manufacturers, and selling these goods – also in bulk – to retailers. Retailers will then sell these goods on a per-piece basis to the consumers.

Pros of indirect selling:

• Better coordination , in case of large orders or demands. In some cases, an agent will be acting in the interest of wholesalers, getting the goods from producers and bringing them to wholesalers. An agent is often required when the product is very much in demand, and more than a few retailers or stores have demand for it.
• It dispenses with the need for the company to maintain a large sales force , composed primarily of sales representatives.
• It broadens the company’s network , enabling it to have productive relationships with distributors and other intermediaries.

3. Dual distribution

In this marketing channel, the manufacturer or seller makes use of more than one type of marketing channel at the same time.

It is possible that a company may have sales representatives to conduct direct selling, but they also have their own sets of intermediaries helping out in the distribution of the products.

A classic example of dual distribution is franchising. A franchisor of a fast food chain, for example, operates its own units. That is direct selling. But the franchisor also licenses the operation of other units to franchisees, who are intermediaries.

The problem that most businesses have with dual distribution is the possibility of channel conflict taking place. There may be overlaps, where the direct selling efforts of the company may be hindering the actions of intermediaries, and vice versa. In the fast food franchise, for example, the franchisor’s units may be competing with that of the franchisees for market share and customers.

4. Reverse channels

This describes a scenario where the process begins from the consumer or end-user, and then to the intermediary, and finally to the beneficiary. Instead of a producer, we have a beneficiary or a user.

In this type of marketing channel, technology plays a very important role, allowing the reversal of the usual or typical flow of transactions. For example, a consumer may be reselling a product or recycling it, so he will sell the recycled product to the intermediary who will, in turn, sell it back to the beneficiary or user.

We can also classify marketing channels according to the players in the flow.

• Manufacturer to Consumer: You can say that this perfectly describes a straightforward direct selling process. The manufacturer makes the product, and sells them directly to the customer. There are no third parties or intermediaries involved. For instance, a manufacturer of children’s clothing will sell the clothes directly in its store. This is what happens in factory outlets belonging to manufacturers.
• Manufacturer to Retailer to Consumer: An indirect channel, the retailer will sell the products that she has purchased from the manufacturer or producer as merchandise to the consumer. In the previous example, a store or boutique that sells children’s apparel will go directly to the manufacturer to purchase the items, and then sell these items in their store.
• Manufacturer to Wholesaler to Consumer: In this case, a wholesaler may buy the items in bulk and sell them directly to the consumers instead of coursing it through a retailer. It is possible that a consumer like a day care center would like to purchase large amounts of children’s clothing. In this channel, they will not bother to visit a retailer and will instead go directly to the wholesaler.
• Manufacturer to Agent to Wholesaler to Retailer to Consumer: This may sound more complicated, because there are more parties involved. A middleman exists in this setup, in the person of the agent. The agent will coordinate the sale and assist the entire process, to take a load of the minds of both the seller and the buyer. In exchange for a commission from the manufacturer, the agent will actively look for potential wholesalers and connect them with the manufacturer. The agent will then bring the products to the wholesaler who, in turn, will sell them to the retailers, the final link to the consumers or end users.

Another classification of marketing channels shows the relationship between the business and its customers. There are two types:

• Business-to-Business distribution (B2B): This channel describes the relationship where a business will sell to another business. This is mostly seen in the manufacturing industry, where one company manufactures parts that will be used by another company in manufacturing another product. For example, a manufacturer of auto spare parts will sell to a car manufacturer.
• Business-to-Customer distribution (B2C): This describes the relationship between a business and the end user of a product. In the above example, the car manufacturer will sell the finished cars to the final customers.

An insightful youtube video on B2B marketing strategies .

BEST PRACTICES IN MARKETING

In marketing, marketers apply “different strokes”, formulating strategies depending on various factors, such as the type of product, the market the business is in, the core vision of the business, as well as constraints that businesses are subjected to. Let us look into the best practices in marketing that marketers agree are essential in making sure their marketing efforts work.

#1 Development of a solid marketing strategy.

A marketing strategy is not something that can be whipped up in a few minutes, created, and presented to management, ready for their approval and implementation. It takes a lot of work to develop a marketing strategy, both in the long and short-term.

Conduct of market research.

Some may think that conducting market research is too tedious and takes a lot of time. They want to jump right in and work with what little information they have. The problem with not doing market research is that there is a risk that you may miss some crucial factors when creating your marketing plan.

Understanding the market or the audience is vital for any marketing strategy to be able to get off the ground, and work. When conducting market research, get up close and personal with your subjects. Information obtained firsthand from the customers is more credible and reliable than information obtained in databases or third party sources.

Understanding the audience will also enable you to look at things from their perspective. It is not always easy for manufacturers and marketers to put themselves in the shoes of the customers or end users, but that is basically what needs to be done.

Take, for example, a company that sells products to different countries. There is a need to analyze all the data or information from these countries in order to come up with a marketing plan suited for multi-cultural and multi-national application. Sometimes after analysis, there is a need to come up with different approaches for different regions.

These are all under the assumption that the customer should always come first, in the formulation of a marketing plan. After all, they are the ones that are to be served, whose needs should be satisfied. They are the ones that the business hopes to deliver value to.

Preparation of a comprehensive marketing plan.

There is a reason why a marketing plan is considered to be one of the vital components of a business plan. It is not something that you should overlook and decide not to prepare (because it takes too much work).Be clear on your objectives for creating a marketing plan.

You should also know the exact type of marketing plan you will develop. The most common types of marketing plans are:

• Tactical marketing plans , usually prepared on an annual basis, focusing on the marketing activities for the year.
• Project or functional marketing plans , pertaining to specific activities or programs related to marketing. Examples are advertising plans, trade show plans, publicity plans, and media plans.
• Strategic marketing plans , which are usually lengthier, more detailed, and more encompassing, often covering a period of 3 to 5 years on average.

Use the 4 Ps.

They are there for a reason. There is also a reason why the 4 Ps are considered canon by many marketers: because they are very useful. If you use the 4 Ps as your guide, you will have a stronger foundation in formulating a marketing strategy.

In every marketing tactic or step, you should always ask: will this help the product or the brand meet the needs of the customer? Is the price within the financial capabilities of the customer? Will the customer be willing to pay that price? Is the product made accessible and available to the customer? Is your promotion doing what it should?

Design marketing programs around real-life events.

Reality resonates more strongly with consumers more than make-believe. Even if there is an element of make-believe, there should always be a touch of reality involved.

The fact of the matter is that consumers respond more favorably to stimulus that they can identify with. If they had prior experience with something that was touched on by the marketing campaign or strategy of a company, they are more likely to pay more attention, take notice and, hopefully, take the action that is expected of them.

#2 Outsourcing marketing services or functions

Marketing responsibilities have the tendency to become too heavy for management to take on, that it opts to outsource marketing functions, leaving the job in the hands of the experts.

Some businesses are capable of forming – and sustaining – their own marketing team. However, there are also those that find it more effective and cost-efficient to outsource these functions.

Why should businesses consider outsourcing marketing functions and services?

• Outsourcing allows the business to focus on its core competencies and concentrate on what it is good at . There will be no problems caused by attention being divided between their core competencies and marketing the products. The danger in trying to do all things all at once is that some business processes may suffer.
• Outsourcing facilitates proper division of labor . Experts should only focus on their expertise. One cannot expect a product developer to also worry about how it will be marketed later.
• Outsourcing allows a business to establish its leadership in the field. A company can have an easier time attracting the top talents in the industry if it becomes known for being able to draw clear lines between its core and non-core competencies.
• Outsourcing allows the business to have savings . Aside from saving on overhead and the compensation paid to full-time staff and employees, outsourcing also saves the company from spending time and other resources in recruitment, hiring and training marketing staff.
• Outsourcing allows the business to get the benefits of a top marketing team , while sticking to its marketing budget. Outsourced marketers also have a lot of experiences that the business can take advantage of.

#3 Involve all stakeholders.

Marketing should be an organization-wide effort, not just limited to the marketing or sales team. The success of the company’s marketing efforts is also largely impacted by the amount of support given by management and the other members of the organization. The CEO, for example, should give his full support, because a strong showing of executive backing will definitely help boost the confidence of the marketing team.

It is not just management and members of the business organization that should be sought for their support. All the stakeholders should be willing to give their support to the marketing efforts of the company whenever necessary.

#4 Keep all communication lines open.

Planning is definitely going to be more effective and efficient with the involvement of many people. Often, the best ideas are obtained from brainstorming activities within groups. You never know; the next brilliant marketing idea may be given by someone not in the marketing team.

#5 Benchmarking.

You have to start from somewhere, and if you are a new business, one good benchmarking method would entail looking at the marketing plans and activities of competitors.

One mistake often made by companies is using random companies as benchmarks. Results of the benchmarking will be more relevant and reliable if the companies used belong to the same industry, and are direct competitors, since you will basically be moving in the same business circles.

#6 Staying fresh, current and true.

Marketers are always on their toes, keeping their eyes and ears peeled on new developments that may impact their marketing strategies. This is because marketing, as a whole, is a very dynamic field. Add if you consider the fast pace of technology, marketers find their hands full all the time trying to stay up to date.

The marketing strategies of a company should be current, which is why it is advantageous to have marketers who are forward-looking and in touch with the times. Otherwise, you will be left with a marketing plan that is no longer feasible in just a few years.

The importance of staying current and up-to-date is seen often in the case of internet or online marketing. Content marketing, search engine optimization, search terms… these are greatly influenced by the passage of time. What is fresh today may not be seen as such in the next week. Thus, it is left in the hands of marketers to find ways to make sure their marketing will still apply even years into the future.

Honesty should also be valued highly. Even the Federal Trade Commission (FTC) formally set it forth in their guidelines . Advertising must “tell the truth” and not be misleading to consumers. In order for advertising to be reliable, there should be something substantial to back up the claims.

#7 Embrace technology and make it work for you.

If there is one amazing marketing tool that can be used, that would be technology. These days, technological advancements have made what used to be inconceivable marketing feats possible.

Social media, for instance, has proven to be one of the current more powerful marketing tools. Even the big businesses know this, judging from how much they invest in creating online presence in social media websites.

Marketers are always looking for collaborative opportunities , where they can enter into partnerships with different media and entertainment platforms, such as BuzzFeed and Vice.

This also involves establishing a solid relationship with the media. Being in an antagonistic or hostile relationship with the press is a sure way to lower the chances of your business succeeding. The media isa very helpful partner in marketing, and making sure that you maintain a good relationship with them will definitely come in handy in future product placements and ad campaigns.

Learn more about the marketing technology universe in the following presentation.

#8 Stick to the budget.

If there is a marketing budget drawn up or prepared, stick to it. Often, companies encounter large problems that started from their inability to stay within the limits of the marketing budget given to them.

If you are able to stick to the budget, that is a clear indication of your ability to implement the marketing plan.

#9 Turning customers into partners.

Word of mouth is often said to be the best form of advertising. Therefore, it only makes sense that customers are the best brand ambassadors. What many companies do these days is to tap into their customer base, choosing those with the capability to become credible influencers and strong ambassadors for their brand.

They usually enlist the help of these potential brand ambassadors by providing them with promotional gifts, often free samples of their products or even samples of products that are yet to be released. In exchange, they will ask for reviews or testimonials for the products.

It has always been the practice of many marketers to enlist celebrities and famous personalities to endorse products, hoping their influence will translate to the product they are promoting, and boost sales. That still works, and we do not see any reason why it should be stopped any time soon. However, marketers are becoming more circumspect in choosing which personality to promote which product.

#10 Always track progress of your marketing.

There should be a process for measuring, monitoring and reporting , in order for the company to ascertain whether the marketing plan is being followed or not. This will enable early corrections in case of errors and appropriate adjustments or tweaks when and where needed.

#11 Accept that marketing is a long-term commitment.

It doesn’t matter if the marketing plan is an annual one, or if it is just for a specific project or activity. The fact remains that it is part of the overall marketing strategy of the company. Unless you only have a short term vision for the company, thinking short-term with respect to the marketing of a company is not sufficient.

This means that management, and all members of the organization, not just the marketing team, should also show the same level of commitment. This calls for continuous collaboration among everyone, and a willingness to engage every step of the process.

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How to Develop an Effective Marketing Mix | What are the Marketing Mix Elements

Updated on: 5 January 2023

Once you have identified your target audience and the competition, the next thing on your to-do list should be developing a marketing mix.

Every business needs its very own marketing mix to appeal to its customers. In this post, we will discuss the marketing mix definition, its importance, the elements of marketing mix and how to develop an effective marketing mix for your product or service.  

For the ultimate list of marketing strategy planning tools with editable templates, you can click here or visit our Marketing Solutions

What is a Marketing Mix?

Marketing mix is a set of actions a business takes to build and market its product or service to its customers.

It helps to make sure that you are able to offer your customers the right product, at the right time and at the right place for the right price.

Whereas traditionally the marketing mix was executed through the 4 Ps of marketing , nowadays 3 more  additional tools have been added to the mix, making it the 7 Ps of marketing. Businesses use a blend of these marketing mix elements to generate the response they want from their audience.

Importance of Marketing Mix

There are several benefits of the marketing mix that makes it important to businesses;

• Helps understand what your product or service can offer to your customers
• Helps plan a successful product offering
• Helps with planning, developing and executing effective marketing strategies
• Helps businesses make use of their strengths and avoid unnecessary costs
• Helps be proactive in the face of risks
• Help determine whether your product or service is suitable for your customers
• Helps identify and understand the requirements of customers
• Helps learn when and how to promote your product or service to your customers

What are the Elements of Marketing Mix

Developing the correct marketing mix for your product or service starts with understanding the Ps of Marketing.

The 4 Ps of Marketing Mix

Product is a good (such as music players, shoes etc.) or service (such as hotels, airlines, etc.) that is offered as a solution to satisfy the needs of your customer.

When developing the product , you need to consider its life cycle and plan for different challenges that may arise during the stages of it. Once the product reaches its final stage (sales decline phase), it’s time to reinvent the item to win the demand of the customers again.

The next element of the marketing mix is the price your customer is willing to pay for your product. This helps determine the profit you will be able to generate.

When setting a price for your product, consider how much you have spent on producing it, the price ranges of your competitors, and the perceived product value.

This is about the distribution center of the product and the methods used in distributing it to the customer.

Wherever this is, it should be easily accessible to the customer. For example, if you have a physical store, it should be located in a place that can be easily discovered by the customer. If you own a website to market your product, make sure it is easily navigable.

Promotion refers to the methods a business uses to gain the attention of the customers to their product. These includes sales promotions, customer service, public relations, advertising etc.

When creating your promotion strategy, consider the tactics used by your competitors, the channels that are most effective in reaching your customers, and whether they match the perceived value of your product.  

The AIDA model is a principle widely used in marketing and advertising. It describes the stages an individual goes through during the buying process to become a customer.

The 7 Ps of Marketing Mix

7 Ps of marketing mix is an extended, modified version of the 4 Ps of marketing. This model is widely used in the service industry. It adds 3 more elements to the 4 Ps discussed above.

This refers to the people – both your customers and employees – who are directly related to the product or service.

While you need to study your target market to understand whether they are in need of the type of product you are offering, you need to hire the right people who are capable of giving their best to build it.

Systems and processes play an important role in building and delivering a quality service to your customer.

Make sure that you process is free of bottlenecks and blockers in order to reduce the unnecessary expenses associated with executing the service.

You can use process maps to map process steps and analyze them to identify where you need to make improvements.

Physical Evidence

Physical evidence refers to what the customers see when consuming your product or service. This could include your branding, packaging, the physical environment where you are selling your product etc.

Make sure that all physical aspects associated with your product or service adhere to its values.

How to Develop a Marketing Mix

Define your goal and set a budget.

Developing an effective marketing mix starts with setting the right goals. Establish what you want to achieve with your marketing plan; is it to grow sales? Acquire more customers? Build brand awareness?

Once you have set realistic and measurable goals, determine how much you are willing to spend on achieving your objectives.

Study Your Target Customer

In order to build a product or service that your customers would want to buy, you need to know who they are.

Find different segments in your target audience and create separate customer profiles for each. Refer to these when you are developing your strategies.

Identify Your Unique Selling Proposition

Clarify what your unique selling proposition is through customer surveys, interviews, focus groups etc.

Here you will identify the benefits your product or service will bring to your customer, and how you are better than anyone else in s olving their problems.

Understand Your Competition

Carry out a competitor analysis to understand the different strategies and tactics used by your competitors. This knowledge will be especially helpful when you are creating your pricing strategy.  

Record important information about your competitors on a competitor profile like the one below

Learn how to conduct an effective competitor analysis .

Identify the Unique Features of Your Product

List down the unique qualities and the value of your product. You can build on these when you are marketing it to your customers.

You can use the mind map below when you are identifying the unique features of your product.

Create a Pricing Strategy

Using the competitor research you have done, build a pricing strategy. Make sure that you have not overpriced or underpriced your product.

Choose Your Distribution Channels & Promotional Methods

Choose the channels you will be distributing your product through based on the type of your product or service and your target customer.

And select the promotional techniques you want to choose based on your budget, and again the customer and your product.

Create your promotion campaign with this editable mind map template ,

Edit the Promotional Campaign Template

What are Your Thoughts on Developing an Effective Marketing Mix?

We’ve covered everything you need to know about a marketing mix and developing an effective one for your business.

What are your experiences in selecting the correct marketing mix for your business? Share your thoughts with us in the comment section below.

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Essay on marketing mix: meaning, components and observations.

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Essay on Marketing Mix: Meaning, Components and Observations !

Essay 1 # Meaning of Marketing Mix:

Marketing mix might be defined as follows:

Marketing mix is a unique combination of the basic ingredients of marketing viz. product, price, place (channels of distribution) and promotion-designed for the best realisation of the objectives of marketing management.

(1) “Marketing mix refers to the apportionment of effort, combination, designing and integration of the various elements of marketing into a programme, of mix which will best achieve the marketing objectives of an enterprise at a given time”.

—Prof. Neil Borden of the Harvard Business School

(2) “Marketing mix is the term used to describe the combination of four inputs which constitute the core of the company’s marketing system- the product, the price structure, the promotional activities and the distribution system”.

—William J. Stanton

Marketing mix is a mix of the type that is planned to ensure that the ‘product’ does sell even amidst intensely competitive conditions; providing best satisfaction to consumers and providing, in turn, handsome profits to the enterprise- in addition to fulfillment of other objectives of marketing management.

Point of Comment:

An analogy could be drawn between the marketing mix of a manufacturer and the spices-mix of a famous ‘Chat-wala’ located at the corner of a busy street in the walled city of Delhi; who combines spices like-salt, rock salt, pepper, black pepper, spices for seasoning food (i.e. garam masala) etc. in such proportions that the chat becomes so tasty as to lead to a remarkable rapidity of turnover fetching handsome profits to the chat-wala.

The chat masala mix is so to say, the trade secret of the chat-wala- unknown to the competitors. Further, the consumers, being unable to prepare that much tasty type of a chat at their homes, are persuaded to visit that particular chat-wala for the satisfaction of their ‘tongue-needs.’

A manufacturer, in a likewise manner, must design such a marketing-mix, that despite severe business competition-consumers do prefer his product and are led to buy that product for the satisfaction of those needs of theirs- for which that particular product is designed.

Essay 2 # Components of Marketing Mix – The 4p’s Of Marketing Mix:

Though there are a large number of component parts (or factors) which may go into the making of a marketing mix; yet, authorities on marketing management agree on four basic elements of marketing mix-popularized as the 4p’s of marketing viz. the product, the price, the place (i.e. the channels of distribution) and the promotion.

In fact, each of these four elements has many variables or variations of factors, and accordingly within the marketing mix we have four sub-mixes i.e. the product-mix, the price-mix the place-mix and the promotion-mix. In other words, the marketing-mix is a fine blend of product mix, price-mix place-mix and promotion-mix.

Following is a brief account of the four sub-mixes, comprised in the marketing mix:

(1) Product-Mix:

A product is not just, a physical tangible object; it is rather a ‘bundle of services’ associated with the utilisation of that product. A person e.g. does not buy a product simply for possession sake; rather he/she expects a number of services and conveniences-to be obtained from using that product.

Some of the important factors which usually go into the designing of the product mix are decisions about:

1. The product-range

2. Design, shape, colour, size, weight of the product etc.

3. Multiple uses of the product.

4. Standardisation/grading of the product.

5. Brand name of the product.

6. Guarantees and warranties offered by the seller.

7. After sales service provided.

A unique combination of these product factors and others makes for designing the product- mix. The basic idea behind making a product mix is to produce and offer a product that makes it acceptable to the target-consumers; by providing them maximum satisfaction for their needs for the fulfillment of which, the product, in question, is intended.

(2) Price-Mix:

The price-factor is, perhaps, the most-crucial factor of the marketing mix; as the buying decisions of most of the consumers are dependent on the price of the product. For the manufacturers also, the price decision is directly reflected in the profits; which they make from selling the product.

Some of the important factors which usually go into the designing of the price-mix are decisions about:

1. Price-range

2. Profit-margin to be included in the price

3. Discounts to be offered-cash discounts and trade discounts.

4. Credit terms

5. Competitors’ prices for similar type of products.

6. Discriminating pricing aspect.

7. Resale price maintenance policy etc.

A unique combination of these price factors and others makes for designing the price-mix. The basic idea behind making a price-mix is to offer the product at a price which is affordable by the target-consumers; making the product worthwhile for purchase; in view of the utility of the product.

(3) Place-Mix:

In marketing management, the term place is used to refer to channels to distribution i.e. intermediaries which fetch products from the place of the manufacturer to the place of ultimate consumers.

The ‘place’ is an important ingredient of marketing mix; as howsoever useful the product might be and howsoever suitable its price, be; unless and until products are made available to consumers at ‘centres of convenient buying’, the busy consumers of today’s affluent societies will be most unwilling to buy those product-travelling long distances.

The important factors which usually go into the making of the place-mix are decisions about:

1. Wholesalers

2. Selling agents

3. Transportation agencies

4. Warehousing agencies

5. Company’s direct selling outlets

6. Home delivery of products.

A unique combination of these place factors and others makes for designing the place-mix. The basic idea behind making a place-mix is to make the product available at such common centres of consumption; as makes for most convenient buying-on the part of the busy consumers of today.

(4) Promotion-Mix:

Promotion refers to creation, maintenance and increase of the demand of the product-through communication of the existence and utility of the product to target consumers and general public’s.

Promotion is a very significant component part of the marketing mix; as without promotional efforts, people would never be able to appreciate the utility of the product for satisfaction of their needs; and conducting sales-transactions, would not, obviously, be possible for the marketer.

Promotion, in a sense, is a sort of best consumer-education; which educates consumers as to the availability and usefulness of various products.

Some of the factors which go into making of the promotion mix are decisions about:

1. Advertising-through various media like the press, radio, TV, films, outdoor advertising, point of purchase-advertising etc.

2. Personal selling or salesmanship through various types of salesmen

3. Sale promotion methods (i.e. methods other than advertising and salesmanship) like- coupons, reduction sales, distribution of free samples, trading stamps, bonus offers, prize- contests and a host of other devices.

A unique combination of various advertising media, various types of salesmen and attractive sales promotions devices, makes for designing the promotion-mix.

The basic idea behind making a promotion-mix is to so communicate knowledge about the existence and utility of products; that prospects appreciate the significance of the products for the satisfaction of their needs and may become ready to buy the product-so promoted.

Point of comment Synchronization of sub-mixes i.e. product-mix, price-mix place-mix and promotion-mix into a grand-plan of marketing, would result in the development of a marketing mix of type which makes

1. The product acceptable

2. The price affordable

3. The place most convenient and

4. The promotion most influencing.

The criterion for measuring the success of the marketing mix is the volume of sales of product turned over by it.

The concept of marketing mix could, we’ll be illustrated, by means of the following circular diagram:

Note: Letter ‘C’ in the inner circle of the diagram indicates the term ‘Consumer’.

Essay 3 # Observations of Marketing Mix:

Certain observations on the concept of marketing mix:

(1) Target consumer is the focal point of designing marketing-mix. In fact, consumer is the central point around which the whole circle of marketing mix is drawn.

(2) All the four P’s of marketing mix are equally important; while designing the marketing mix. If e.g. the product is good (acceptable); but the price is not affordable the product may not be a good success.

Or if the product is acceptable and its price is also affordable; but the place (i.e. Channels of distribution) is not convenient for buying on the part of consumers-the product may not sell as much as expected.

Again, if the product, price and place-all the three meet the requirements of consumers; but the promotion is not properly communicative and influencing-the product may not sell much.

Therefore, an equal amount of emphasis must be placed on each of the four major elements of marketing mix; as an over-emphasis on any one element of the mix at the cost of other elements would simply mean a failure of the entire design of marketing mix.

(3) The four P’s of marketing mix are interrelated and interdependent; because a change in any one element of marketing mix is likely to necessitate suitable changes in other related elements of it.

For example, if a change (of any type, for that matter) is proposed to be made in the product; it might also be considered fit, by marketing management, to effect a change in the price of the product or a change in the promotional techniques; and so on for changes in other elements of marketing mix.

(4) Marketing mix is not developed in a vacuum:

Besides the 4P’s of marketing mix, which are the controllable elements of it; there are certain external environmental factors which are the uncontrollable elements of marketing mix.

Any design of the marketing mix must, accordingly, be shaped in view of the implications of environmental factors, amidst which the marketing mix is to demonstrate its impact on the marketing operations of the business enterprises.

In fact, the environmental factors provide the basic framework; within which the marketing mix is to be designed . (The outer circle of the marketing mix diagram shows the significance of environmental factors; while designing the marketing mix ).

Related Articles:

• Marketing Mix: Meaning, Definition and Characteristics of Marketing Mix (with diagram)
• Elements of Marketing Mix: Product, Price, Place (Distribution) and Promotion

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• Role of Marketing and Marketing Mix

It is often said, “marketing makes the world go round”. Marketing and all its elements have become so synonymous with business and products, that one cannot imagine a world without marketing . In fact marketing, along with marketing mix, plays an essential role in our economies also. Let us take a look.

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Marketing and marketing mix.

Marketing can simply be described as a sum total of all process and activities involved in the efforts to create and sell goods and services to the customers. Every activity from designing the product , pricing, packaging, selling, promotion etc are an element of marketing.

In every market, while launching a product there are both controllable and uncontrollable factors. The uncontrollable factors, over which the company has absolutely no say, are the government policies , money in the market, economic conditions etc. But then there are controllable factors like the design of the product, its price point etc. These controllable factors are what we call marketing tools.

And marketing mix is a unique set of these marketing tools the company must shape to be ideal for the market conditions . The four main elements of the marketing mix are Place, Product, Price, and Promotion.

In the Firm/Company

Marketing is actually the key to achieving the main objective of the firm. This can be to earn profits or to achieve some other aim. Even non-profitable organizations (like say for example Red Cross) require the modern tools and ideologies of marketing to achieve their goals. Marketing will not only help them spread awareness but can also significantly help with raising funds and securing donations.

In a firm marketing helps them realize consumer needs. Market research will allow the firm to recognize the needs of the consumers to be met, and even help design the perfect goods/services to meet this needs. Right from the design process, to the distribution channel, promotions etc up to the after-sales service are a part of marketing.

If the marketing philosophy is executed perfectly, the firm will meet all the needs of a potential consumer. And a happy customer is a return customer. Marketing is the key to the success, growth and long-term future of any firm.

Browse more Topics under Marketing

• Market & Marketing
• Functions of Marketing
• Marketing Management Philosophies
• Distribution
• Personal Selling
• Sales Promotion and Publicity

In the Economy

The economic development of a country is very closely related to marketing, so it can be said marketing plays an invaluable role in the economy. It mainly motivates firms and other producers to manufacture goods according to the need of the consumer , and this sets off a chain of events.

Marketing will also help overcome the obstacles to entering a new market. It keeps the demand and supply of goods in check by ensuring smooth production and distribution of goods. So the production and consumption balance out and the price remains stable in the long run.

At the end of the day, marketing is basically a non-replaceable element of the economy. It connects the production centres with the consumption centres. These economic activities (occurring due to marketing) keep the economy running and even boost the GDP of the country. It leads to higher per capita income, more savings and hence more investments (cyclic flow of money).

Solved Question for You

Q: The word Market has come from the Latin word _____________.

Ans: The correct answer is “D”. Marcatus is the Latin word for place of trade or business.

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Importance And-Importance-Of-Marketing-Mix (Essay Example)

Ulises Almanza

Marketing is a crucial aspect of any business, as it involves creating, communicating, delivering, and exchanging offerings that have value for customers. One of the key components of marketing is the marketing mix, which consists of the four Ps: product, price, place, and promotion. The marketing mix plays a significant role in determining the success of a product or service in the market. The product is the first element of the marketing mix and refers to the actual offering that a company provides to its customers. It is essential to have a strong product that meets the needs and wants of the target market. A well-designed product that offers unique features and benefits can give a company a competitive edge in the market. In addition, the quality and branding of the product can influence consumer perception and willingness to purchase. Price is another critical element of the marketing mix that can significantly impact a company’s success. Pricing strategy plays a vital role in determining the perceived value of a product and can affect consumer behavior. Setting the right price is essential for achieving sales targets and maximizing profitability. It is crucial to consider factors such as production costs, competition, and target market when determining the price of a product. Place, or distribution, is the third component of the marketing mix and refers to the channels and methods used to make a product or service available to customers. The right distribution strategy ensures that products are accessible to consumers at the right time and place. Distribution decisions can impact a company’s ability to reach its target market and can affect customer satisfaction. Companies must carefully consider factors such as transportation, logistics, and inventory management when developing a distribution strategy. Promotion is the final element of the marketing mix and involves activities aimed at communicating the value of a product or service to customers. Effective promotion strategies can help build brand awareness, generate interest, and drive sales. Companies use a variety of promotional tools, such as advertising, public relations, sales promotions, and direct marketing, to reach their target audience. A well-executed promotion strategy can influence consumer behavior and drive purchase decisions. In conclusion, the marketing mix is a crucial tool for businesses to achieve their marketing objectives and drive success in the market. By carefully considering the four Ps: product, price, place, and promotion, companies can develop effective strategies to meet customer needs and achieve their goals. A well-designed marketing mix can help companies create value for customers, differentiate themselves from competitors, and build strong relationships with their target market. Ultimately, the importance and impact of the marketing mix cannot be overstated in today’s competitive business environment.

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Written by Ulises Almanza

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Why Great Innovation Needs Great Marketing

by Denise Lee Yohn

Summary .   

Innovation is a top priority for almost every organization. But to achieve success through innovation, companies must put as much energy and investment into marketing new offerings as they do in generating them. Marketing is and should not be executed merely through tactical functions of acquiring and retaining customers, as many companies practice it today. The full, business-growing power of the marketing function comes way upstream — from creating markets. Understanding people’s fundamental needs and drivers, identifying customers, and developing the entire go-to-market and usage ecosystem are the essential aspects of marketing — and the ones that the success of innovations, especially breakthrough ones, hinge upon. Marketers need to be included in development discussions earlier in the innovation process.

Innovation is a top priority for almost every organization. But to achieve success through innovation, companies must put as much energy and investment into marketing new offerings as they do in generating them.

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