Part 1- Introduction The report contains the...
Marketing mix is the set of actions which a company uses for promotion of its product or service in the market. A very famous definition is “Putting the right product in the right place, at the right, at the right time.” It simply means the right product to be sold at the right price in the right place using the most suitable promotions. It is all about developing a product or service which the people want, and then finding a location for sale that people often visit and deciding a price that fits the value offered and can match to the people. The term marketing mix was given by Neil Borden. It became a common term for the businesses when he published an article The Concept of the Marketing Mixin 1964. James Culliton explained about marketing manage as the mixer of ingredients. Borden’s marketing mix model was comprised of product planning, branding, pricing, distribution channel, personal selling, advertising, promotions, packaging, servicing etc. Today this term is the most vital step in the execution of market plan. Marketingis important for the success of any business. Its primary motive is consumer value and customer satisfaction with quality. Later on, E. Jerome McCarthy grouped them into four categories which is now known as the 4 Ps of marketing.
4Ps of Marketing Mix
The term marketing mix is often replaced with 4 Ps of marketing. As most of the time, they seem to be similar. Marketing mix is about the choices which are made in whole process such as bringing product to the market. 4Ps is one and the best known way of doing this. The four Ps companies use to meet out the customer’s satisfaction in the market in order to make the profit are as follows:
These four Ps decides the future of the product in the market. In a consumer centric marketing mix, there are three more Ps i.e., people, process and physical evidence and three Cs: cost, consumer and competitor. In current market scenario, many people refer to7Ps marketing model.
Now let us discuss these four variables.
This category includes the goods or services that a business offers to sale in the target market to the customers. It’s a physical item which means it is a tangible thing. While service is also included in this category which is in intangible form. The decision which should be taken here are:
- Product quality
- Branding and naming
- Accessories and services
This category defines what is the product that is to be sold, how will it satisfy the customer, how will it influence the customer, how will it benefit both the sides? Product or service offered is the face of the company. If the product is fit, the company is a hit.
Price is the value that is decided for the product. Price determines the impact of profit margins, supply demand and marketing strategy. Price is set in regards to the location, distribution medium, the way of getting a product, production cost, supply and demand etc, including business location, distributors, logistics, internet, advertisements etc. It further includes discounts, financing, leasing etc. Pricing is also used for enhancing the product/brand image. Pricing creates sales revenues. Pricing varies with respect to time and circumstances. For example, the oil in oil countries has a different pricing than those where it is imported. Pricing decision includes pricing strategy, seasonal pricing, price flexibility, price discrimination, volume discount etc.
Promotion comes in the picture when the product with its pricing is decided. Promotion is the marketing communication, which means the information communication related to the product. This is done to generate a good healthy customer response. Simply it is the business of communicating with the customers. This communication helps in decisions and planning. Promotion includes all the activities done bring customer’s attention towards the product or services, including advertising, press reports, direct marketing, personal marketing, media communication, public relations, email marketing, search engine marketing, sales promotion etc.
The product is ready with its price and the promotion strategy. Now comes the place where to sell it which means the location. Is it to be sold by the company directly, through wholesalers, retailers, direct mail, internet etc? Place is the way by which company makes its product available to the customers. This is decided when the other entire variables have received a firm planning and strategy. Places vary depending upon the customers as well. Place should be decided in such a way which can appeal to the customers.
All the variables depend upon each other. These four pillars are joined to form a highly effective marketing strategy. Business need to satisfy the following norms:
- The product should possess right features and qualities. There should be no chance of compromising with product in terms of its effectiveness, work etc.
- The product/service should be introduced at the right time for the right people in the right place.
- The pricing should be decided with consideration of customer’s capabilities and market. Marketing mix is the most effective tool in building successful marketing strategies. Marketing mix has the potential of deciding the continual success of the company. Marketing mix helps in finding out the various marketing considerations to know how to best allocate the resources available. It helps the companies in effective promotion and sales of its product. When a company knows the customer’s needs and requirement, it can modify the products accordingly. Knowing the marketing plan, companies can conduct the necessary research and can find out the ways for customer satisfaction. Marketing mix serves as the tool for achieving the competitive advantage. Change in the marketing environment can bring many challenges for the companies. Here marketing mix becomes a crucial step. Every company has different core business strategies and business development models which vary according the marketing domains, time, place, customers etc. but the marketing mix are the same throughout. Marketing mix creates strategies which can achieve the customer satisfaction.