Marketing mix

Marketing mix
See also
Goals of marketing Retail strategy General and target market strategy Audience profile Strategic statement Market potential Market segmentation process Consumer orientation Route to market

Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market. Those tools are classified into four groups, called the four P's:

Product

A product is an item (or service) that is offered in a market to satisfy a specific need of customer. A product may be physical but also may have immaterial form (e-book, mp3 tune, etc.).

Price

The price is a value customer has to pay for it. For that reason, the price element cannot be considered separately from the element of product. The key objective of using a price is obviously to generate and maximize company revenues.

Place

This factor includes distribution channel or place in which customers can buy offered product. The distribution forms the physical connection between the company and the final users of the product. Having a good distribution is very important and may even produce a sustainable competitive advantage. The main objective of a distribution is to decide to what extend and where should be the product available that the target audience is able to obtain it.

Promotion

Promotion consists of all marketing communication activities between company and its customers. Communication involves informing and convincing the target audience of certain characteristics of the brand; therefore, it has not only short-term goals but also long-term goals. Sales promotion refer to all short-term efforts to achieve more sales by making temporary changes in the four P's.

The particular marketing components and marketing-mix decisions under each P are presented in fig. 1.

Fig. 1. The Four P Components of the Marketing Matrix, based on: P. Kotler 2000

Choice of marketing mix strategy

The choice of the marketing strategy determines the marketing mix strategies to a large extend. The marketing mix objectives should be formulated separately for an each marketing mix element, however not an every company considers it as an important phase, they often presume that generally formulated marketing objectives are sufficient for a business (however, it is difficult to meet all these requirements for some marketing mix factors).

The marketing mix objectives have to meet the four requirements:

• They have to be formulated within specified time frame,
• They have to be formulated quantitatively using clear numeric measures,
• They have to be ambitious, and require substantial work of managers and employees,
• They have to be realistic to maintain engagement.

Marketing mix is often used to discover and analyse strategies of company's competitors.

See also:

• Procedure for creating marketing strategy
• Sponsorship marketing

Examples of Marketing mix

Product:

• Developing a unique product features, such as a new technology, that can be used to differentiate the product from competitors
• Offering a range of sizes, colors, and styles of a product to meet different customer needs
• Creating a strong brand identity to make the product stand out in the market

Price:

• Offering discounts and promotions to incentivize customers to purchase a product
• Establishing a competitive pricing strategy to stay competitive in the market
• Utilizing dynamic pricing to charge different prices for the same product at different times

Promotion:

• Utilizing various channels, such as television, radio, newspaper, and digital advertising, to reach target customers
• Leveraging influencers and social media platforms to create buzz around a product
• Developing promotional campaigns to create awareness and engage customers

Place:

• Developing an effective distribution strategy to ensure that the product is available in the right places
• Utilizing a mix of online and offline sales channels to reach a wider customer base
• Establishing partnerships with retailers, distributors, and other partners to expand the reach of the product.

Advantages of Marketing mix

The advantages of the Marketing mix are:

• Product: It allows companies to develop and improve their products according to customer needs and preferences.
• Price: It helps companies to set the right price for their products and services.
• Promotion: It helps companies to create awareness and promote their products and services.
• Place: It helps companies to distribute their products and services to their target customers in an efficient and effective manner.
• People: It helps companies to identify the right people to be involved in delivering their products and services.
• Process: It helps companies to develop efficient and effective processes to deliver their products and services.
• Physical Evidence: It helps companies to create a positive customer experience with their products and services.

Limitations of Marketing mix

The four Ps of the marketing mix are an essential tool for a company to pursue its marketing objectives in the target market. However, there are some limitations to consider:

• The 4 Ps are only a simplified view of the marketing process. They do not take into account other factors such as the customer experience, customer service, product quality, and brand loyalty.
• The 4 Ps are static in nature, meaning they do not consider the dynamic environment in which companies operate. Companies must be aware of the changing market conditions and adjust their strategies accordingly.
• The 4 Ps do not consider the various stakeholders involved in the marketing process. Companies must be aware of the needs and wants of their customers, suppliers, and other stakeholders.
• The 4 Ps do not take into account the ethical and social implications of a company's marketing decisions. Companies must consider the potential impact their decisions can have on society.
• The 4 Ps do not consider the customer's opinion of the product or service. Companies must take customer feedback into account in order to improve their products and services.

Other approaches related to Marketing mix

The Marketing mix consists of the four Ps, but there are several other approaches related to it. These include:

• The 4C's approach, which stands for Customer, Cost, Convenience, and Communication. This approach emphasizes the importance of customer needs and focuses on the customer’s perspective.
• The 5C's approach, which stands for Customers, Company, Collaborators, Competitors and Climate. This approach looks at the external environment and how it impacts the company’s strategy.
• The 7P's approach, which stands for Product, Price, Promotion, Place, People, Processes, and Physical Evidence. This approach looks at the customer’s experience and how the company can improve it.
• The 4A's approach, which stands for Awareness, Acquisition, Activation, and Advocacy. This approach focuses on customer engagement and fostering customer relationships.

In summary, the Marketing mix consists of the four Ps, but there are other approaches related to it, such as the 4C's, 5C's, 7P's, and 4A's approach. These approaches focus on different aspects of marketing and provide additional insights into customer behaviour and trends.

References

• Alsem K.J., (2007). Strategic Marketing: An Applied Perspective, New York, N.Y.: McGraw-Hill.
• Borden, N. H. (1964). The concept of the marketing mix. Journal of advertising research, 4(2), 2-7.
• Kotler P., (2000). Marketing Management, Prentice Hall, Millennium Edition.
• Kotler P., & Armstrong, G. (2010). Principles of marketing. Pearson education.
• Peter J.P., Donnelly Jr J., (2003). Marketing Management: knowledge and skills, McGraw-Hill/Irwin
• Robinson, W. T. (1988). Marketing mix reactions to entry. Marketing Science, 7(4), 368-385.
• Van Waterschoot, W., & Van den Bulte, C. (1992). The 4P classification of the marketing mix revisited. The Journal of Marketing, 83-93.
• Marketing mix @ Wikipedia.

Author: Ewa Szczepankiewicz