What is marketing mix

Marketing Mix – The 4 p’s of marketing

January 5, 2021 By Hitesh Bhasin Tagged With: Marketing

Dictionary Definition: The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. The 4Ps make up a typical marketing mix – Price, Product, Promotion and Place.

The Marketing mix is a set of four decisions which needs to be taken before launching any new product. These variables are also known as the 4 P’s of marketing. These four variables help the firm in making strategic decisions necessary for the smooth running of any product / organization.

Table of Contents

If you ask What is the marketing mix?

Then in summary these 4 variables comprise the Marketing-mix.

What are the two types of Marketing mix?

1) Product marketing-mix – Comprised of Product, price, place and promotions. This marketing-mix is mainly used in case of Tangible goods.

2) Service marketing-mix – The service marketing-mix has three further variables included which are people, physical evidence and process. They are discussed in detail in the article on service marketing-mix.

The term marketing-mix was first coined by Neil H Borden back in 1964 in his article “The concept of marketing-mix”. Several strategic analysts over the years believe that the marketing-mix can make or break the firm. Having the right marketing-mix at the start of the marketing plan is absolutely essential. Over time the concept of marketing-mix has provided a steady platform for the launch of a new product or business.

As mentioned before, the marketing-mix is characterized by four different but equally important variables. These variables are never constant and may be changed over time. However, a change in one of the variables may cause a change in all the other variables as well.

The Variables of Marketing-mix are as follows

1) Product in the Market mix

The first thing you need, if you want to start a business, is a product. Therefore Product is also the first variable in the marketing-mix. Product decisions are the first decisions you need to take before making any marketing plan. A product can be divided into three parts. The core product, the augmented product and the tertiary product. Before deciding on the product component there are some questions which you need to ask yourself.

Based on these questions, several product decisions have to be made. These product decisions will in turn affect the other variables of the mix. For example – You plan on launching a car which will have the highest quality. Thus the pricing, promotions and placing would have to be altered accordingly. Thus as long as you dont know your product, you cannot decide any other variable of the marketing-mix. However, if the product features are not fitting in the mix, you can alter the product such that it finds a place for itself in the marketing-mix.

2) Pricing in the Marketing mix

Pricing of a product depends on a lot of different variables and hence it is constantly updated. Major consideration in pricing is the costing of the product, the advertising and marketing expenses, any price fluctuations in the market, distribution costs etc. Many of these factors can change separately. Thus the pricing has to be such that it can bear the brunt of changes for a certain period of time. However, if all these variables change, then the pricing of a product has to be increased and decreased accordingly.

Along with the above factors, there are also other things which have to be taken in consideration when deciding on a pricing strategy. Competition can be the best example. Similarly, pricing also affects the targeting and positioning of a product. Pricing is used for sales promotions in the form of trade discounts. Thus based on these factors there are several pricing strategies, one of which is implemented for the marketing-mix.

3) Place in the Marketing-mix

Place refers to the distribution channel of a product. If a product is a consumer product, it needs to be available as far and wide as possible. On the other hand, if the product is a Premium consumer product, it will be available only in select stores. Similarly, if the product is a business product, you need a team which interacts with businesses and makes the product available to them. Thus the place where the product is distributed, depends on the product and pricing decisions, as well as any STP decisions taken by a firm.

Distribution has a huge affect on the profitability of a product. Consider a FMCG company which has national distribution for its product. An increase in petrol rates by 10 rs will in fact bring about drastic changes in the profitability of the company. Thus supply chain and logistics decisions are considered as very important costing decisions of the firm. The firm needs to have a full proof logistics and supply chain plan for its distribution.

4) Promotions in the Marketing-mix

Promotions in the marketing-mix includes the complete integrated marketing communications which in turn includes ATL and BTL advertising as well as sales promotions. Promotions are dependent a lot on the product and pricing decision. What is the budget for marketing and advertising? What stage is the product in? If the product is completely new in the market, it needs brand / product awareness promotions, whereas if the product is already existing then it will need brand recall promotions.

Promotions also decide the segmentation targeting and positioning of the product. The right kind of promotions affect all the other three variables – the product, price and place. If the promotions are effective, you might have to increase distribution points, you might get to increase the price because of the rising brand equity of the product, and the profitability might support you in launching even more products. However, the budget required for extensive promotions is also high. Promotions is considered as marketing expenses and the same needs to be taken in consideration while deciding the costing of the product.

Thus as we see from the above diagram, all the four variables of marketing-mix are inter related and affect each other. By increasing the pricing of the product, demand of the product might lessen, and lesser distribution points might be needed.

On the other hand, the product USP can be such that maximum concentration is on creating brand awareness, thereby increasing need of better pricing and more promotions. Finally, the overall marketing-mix can result in your customer base asking for some improvement in the product, and the same can be launched as the upgraded product.

Video on the Marketing-Mix

The role of Marketing-mix in Strategy

Marketing-mix plays a crucial role while deciding the strategy of an organization. It is the first step even when a marketing plan or a business plan is being made. This is because, your marketing-mix decision will also affect segmentation, targeting and positioning decisions. Based on products, segmentation and targeting will be done. Based on the price, positioning can be decided. And these decisions will likely affect the place and promotion decisions. Thus, the marketing-mix strategy goes hand in hand with segmentation targeting and positioning.

The above four P’s of marketing give you an overall look at the product marketing-mix. If your product is a service offering then there are 3 further P’s taken into consideration namely – people, physical evidence and process. For the same, you can refer the Service marketing-mix.

Marketing Mix

What Is a Marketing Mix?

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.

Key Takeaways

Understanding Marketing Mix

The four Ps classification for developing an effective marketing strategy was first introduced in 1960 by marketing professor and author E. Jerome McCarthy.   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.

Product

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.

Price

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.

Placement

The type of product sold is important to consider when determining areas of distribution. 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. Another consideration is whether to place a product in a physical store, online, or both.

Promotion

Joint marketing campaigns also are called a promotional mix. Activities might include advertising, sales promotion, personal selling, and public relations. A key consideration should be for 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.

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

Special Considerations

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 refer to employees who represent a company as they interact with clients or customers. Process represents the method or flow of providing service to the clients and often incorporates monitoring service performance for customer satisfaction. Physical evidence relates to an area or space where company representatives and customers interact. Considerations include furniture, signage, and layout.

Additionally, marketers often study consumers who frequently will influence strategies related to service or products. This also requires a strategy for communicating with consumers in terms of obtaining feedback and defining 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. Reassessing the customers’ needs, communicating frequently, and developing strategies to build customer loyalty are the goals.

What is a marketing mix? Definition and examples

A marketing mix is a planned mix of elements that make up the marketing plan of a product or service. There are typically four elements: Product, Price, Place, and Promotion. They all start with the letter ‘P.’ Hence, we can say the marketing mix or the 4Ps. Some people also call the mix the 4Ps Strategy or the 4Ps Marketing Matrix.

Companies adjust the 4Ps until they find the combination that is just right for the product. In other words, the marketing mix that generates the most profit and also satisfies customers’ needs, wants, and expectations.

According to BusinessDictionary.com, sometimes ‘Presentation’ substitutes ‘Product’ in the first ‘P.’

Some marketing executives refer to the marketing mix of the 4Ps as the marketing principles. We use the marketing principles for the successful promotion of either goods or services.

Philip Kotler, an American marketing author, consultant, and professor, once said:

“The marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market.”

Prof. Kotler is the S. C. Johnson Distinguished Professor of International Marketing at the Kellogg School of Management at Northwestern University.

Marketing tools are tools that businesses use to promote their products and services. They also use them to determine what new products to develop and how to improve their existing ones.

Marketing and the marketing mix

Marketing is a management process through which goods and services move from concept to the final consumer, i.e., the end user. It includes the identification of a good or service, determining demand, deciding on a price, and choosing distribution channels.

It also includes the development and implementation of a promotional strategy. As a business strategy, marketing has been around for thousands of years.

Marketing theory, on the other hand, emerged at the beginning of the last century. The contemporary marketing mix of the 4Ps emerged in the 1960s. It has become a dominant framework for marketing management decisions (see the end of this article for the 7Ps).

Your marketing mix depends on what you are selling, where, when, how, and to whom.

4 elements of the marketing mix

Below is an explanation of the four elements of the marketing mix – they all start with the letter ‘P’:

Product

This term refers to an item that satisfies the needs or wants of the consumer. The word products, in this context, also includes services.

It, therefore, includes tangible items, i.e., goods, and intangible items, i.e., services, experiences, or ideas. If something is tangible, you can touch it, i.e., it is a physical item. The word intangible refers to something we cannot touch; it is abstract (not physical).

Typical product marketing decisions include branding, product range/mix, product lines, and packaging and labeling. It also includes guarantees, warranties, returns, and managing products through the life-cycle.

Price

This term refers to how much buyers pay for the product. It may also refer to the sacrifice customers are prepared to make to purchase a product. Sacrifice includes, for example, time and effort.

This element of the marketing mix is the only one that has implications for revenue and profit margins. It also includes considerations of customers’ perceived value.

Typical marketing decisions include price strategy, price tactics, and price setting. They also include discounts for customers and payment terms.

Place

Place is all about where the manufacturer makes and sells the product. In other words, the products’ place of origin and the provision of customer access.

Location can affect customer service as well as how rapidly the seller can respond to orders and requests.

Typical marketing decisions include where best to sell the product and where consumers are likely to look for it. They also include how to get the product to where consumers are.

Is it a B2B, B2C, or B2G business?

Promotion

This element of the marketing mix is all about telling consumers about the product. In other words, marketing communications. Promotion may consist of public relations (PR), direct marketing, advertising, and sales promotion.

Marketing decisions include determining what promotion mix is best as well as the message strategy. They also include determining channel/media strategies and message frequency.

If the product is seasonal, for example, getting the timing of the promotional activities right is crucial.

The Marketing Mix says the following regarding promotion:

“Promotion is a very important component of marketing as it can boost brand recognition and sales. Promotion is comprised of various elements like the sales organization, public relations, advertising, and sales promotion.”

Marketing mix – 7Ps

There is another marketing mix that has seven elements. We call them the 7Ps because they all start with the letter ‘P.’ The seven Ps are Product, Place, Price, Promotion, People, Physical Environment, and Process.

Regarding the 7Ps marketing mix, professional Academy says:

“Though in place since the 1980’s, the 7Ps are still widely taught due to their fundamental logic being sound in the marketing environment and marketers abilities to adapt the marketing mix to include changes in communications.”

Social media, for example, is one of the changes in communication.

What is The Marketing Mix?

The marketing mix is a business tool which is especially useful when selling a product or service. Introduced in 1960, this marketing tool evaluates the attractiveness of an offer through various different factors — the “Ps”. This article will explain what the marketing mix is, and why it is relevant to you.

What are The Ps?

When first conceived by Michigan State University professor E. Jerome McCarthy, there were only 4 Ps included in the marketing mix: Product, Pricing, Place and Promotion. Since then, an additional 3 variables have been added, which are especially significant in service marketing — these are Physical evidence, People, and Process.

What is the relevance of each P?

In a future article, we will explore each of the 7 Ps in depth, but it’s still worth explaining what each of them refer to, and why they are relevant to making sales. Without further ado:

The additional 3 Ps (making the “7 Ps”):

What can the marketing mix be used for?

As the name suggests, the marketing mix is a mix of different factors that warrant attention should you wish to successfully market a product or service. Instead of mindlessly throwing a product on the market, the various variables in the marketing mix will make you reevaluate what value you are providing and how you are doing it.

One approach to using the marketing mix is evaluating each of the factors through different questions. Ask yourself “What am I selling?” and “Why is it valuable?” to gain insight about your product. You might also ponder “Is it worth it for the customer?”, ‘How will the customer find out about it?”, or “How will the customer receive it?” to analyze the other 3 main Ps.

If you can think of a good answer for each of those questions, and others, then your product/service is probably ready for the market.

That’s all there is to say about the marketing mix. Next, we pick apart each of the variables of the marketing mix in further depth, helping you to make sense of this invaluable concept.

What the Marketing Mix Is and Why It’s Important

The elements of a marketing mix and how to use them effectively

A marketing mix is the set of marketing tools that a business uses to sell products or services to its target customers.

What Is Marketing Mix?

Businesses have technically always used marketing tools to promote and sell their work, but the term «marketing mix» was coined in the mid-20th century. One of its first uses was in a 1953 address to the American Marketing Association, in which Harvard professor and marketing expert Neil Bordon outlined how marketers develop and execute a successful marketing plan.  

Identifying and arranging the elements of its marketing mix allows a business to make profitable marketing decisions at every level. These decisions help a business:

Since the 1950s, the elements of marketing mix have undergone various transformations in response to new technologies and other changes in marketing best practices.

The Four Ps of Marketing Mix

Since the 1960s, marketing mix as been associated with the four Ps: price, product, promotion, and place.  

The Seven Ps of the Marketing Mix

Sometimes, the four Ps are expanded to include the seven Ps. In addition to the usual four Ps, the seven Ps include physical evidence, people, and process.

What Is a Digital Marketing Mix?

A digital marketing mix is how a business achieves its marketing goals using digital technologies. As more business is done online, digital marketing tools become important to all types of businesses, not only those in the tech industry.

A digital marketing mix follows the same principles of a traditional marketing mix. However, those elements are adapted to the way the Internet influences new technologies and consumer behavior.

The Four Cs of a Marketing Mix

In the 1990s, the four Ps were adapted to the four Cs to place less focus on the business and more on the customer.   The four Cs are consumer, cost, convenience, and communication. In some instances, the four Cs may be more applicable to a digital marketing mix than the four Ps.

How to Identify Your Marketing Mix

To bring in early sales and build a customer base, any business must begin by identifying its marketing mix. The first step in this process is identifying your target customer.

Once you know who your customer is, you can start to understand their relationship with your business.

Next, identify your goals for sales and growth, as well as your budget for marketing initiatives. Then, choose a marketing tactic that will help you reach your target audience and achieve those goals.

For example, if you need 25 leads to sell one product, and you want to sell 1,000 products this month, then you need 25,000 new leads. You know your target customer reads and trusts two different websites, one with 25,000 visitors a month and one with one million visitors a month. The website with only 25,000 visitors a month is much less expensive to advertise on, but it is unlikely that all 25,000 visitors will become new leads. Therefore, the website with one million monthly visitors is a better use of your advertising budget, even if it is more expensive.

By working through the elements of your business’ individual marketing mix, you’ll be able to create a strategy that effectively reaches consumers, make sales, and grows your business.