Marketing Mix

                                                              Marketing Mix

Definition:

          “A combination of factors that can be controlled by a company to influence consumers to purchase its products”.

The marketing mix definition is simple. It is about putting the right product or a combination thereof in the place, at the right time, and at the right price. 

                                                 

Marketing Mix 4P’s  

  

                                       

Marketing Mix – Product:

                A product is an item that is built or produced to satisfy the needs of a certain group of people. The product can be intangible or tangible as it can be in the form of services or goods. Producer must ensure to have the right type of product that is in demand for his market. So during the product development phase, the marketer must do an extensive research on the life cycle of the product that they are creating.  A product has a certain life cycle that includes the growth phase, the maturity phase, and the sales decline phase. It is important for marketers to reinvent their products to stimulate more demand once it reaches the sales decline phase. Marketers must also create the right product mix. It may be wise to expand current product mix by diversifying and increasing the depth of the product line.

Marketing Mix – Price

             The price of the product is basically the amount that a customer pays for to enjoy it. Price is a very important component of the marketing mix definition.

 Pricing always help shape the perception of the product in consumer’s eyes. Low price usually means an inferior good in the consumer’s eyes as they compare product of one company or producer to its competitor. Consequently, prices too high will make the costs outweigh the benefits in customer’s eyes, and they will therefore value their money over the product.

When setting the product price, marketers should consider the perceived value that the product offers. There are three major pricing strategies, and these are:

·         Market penetration pricing

·         Market skimming pricing

·         Neutral pricing

Market Penetration Pricing:  Market Penetration Pricing is a pricing strategy that sets a low initial price for a product. The goal is to quickly attract new customers based on the low cost. The strategy is most effective for increasing market share and sales volume while discouraging competition.

Market Skimming Pricing: It is an approach under which a producer sets a high price for a new high end product or a uniquely differentiated technical product. Its objective is to obtain maximum revenue from the market before substitutes appear. After that is accomplished, the producer can lower the price drastically to capture the low end buyers and to thwart the copycat competitors.

Neutral pricing: Essentially neutral pricing is the safe way to play the pricing game. In a neutral strategy, the prices are set by the general market, with your prices just at your competitor’s prices. The major benefit of a neutral pricing strategy is that it works in all four periods of the product lifecycle. The major drawback is that company (producer/manufacturer) cannot maximize its profits by basing price only on the market.

Marketing Mix – Place

Placement or distribution is a very important part of the product mix definition. Product has to be positioned and distributed in a place that is accessible to potential buyers. There are many distribution strategies, including:

·         Intensive distribution: A marketing strategy under which a company sells through as many outlets as possible, so that the consumers encounter the product virtually everywhere they go: supermarkets, drug stores, gas stations, and the like. Soft drinks are generally made available through intensive distribution.

6

·         Exclusive distribution: Distribution is exclusive when only certain retailers are given the option of carrying a product in its store. Exclusive distribution is an agreement between a supplier and a retailer granting the retailer exclusive rights within a specific geographical area to carry the supplier's product.

·         Selective distribution

Selective distribution is a useful tool at the disposal of the supplier since it can refuse to sell to those dealers that do not comply with the set criteria. This system is therefore interesting since it allows the supplier of products to organize its distribution according to its wishes and strategy.

·         Franchising

Franchising is a form of business by which the owner (franchisor) of a product, service or method obtains distribution through affiliated dealers (franchisees). . If buying an existing business doesn't sound right for you but starting from scratch sounds a bit intimidating, you could be suited for franchise ownership.

Marketing Mix – Promotion

                  Promotion is a very important component of marketing as it can boost brand recognition and sales. Promotion is comprised of various elements like:

·         Sales Organization

·         Public Relations

·         Advertising

·         Sales Promotion

Advertising typically covers communication methods that are paid for like television advertisements, radio commercials, print media, and internet advertisements. Public relations, on the other hand, are communications that are typically not paid for. This includes press releases, exhibitions, sponsorship deals, seminars, conferences, and events. Word of mouth is also a type of product promotion. Word of mouth is an informal communication about the benefits of the product by satisfied customers and ordinary individuals. The sales staff plays a very important role in public relations and word of mouth. Word of mouth can also circulate on the internet. An extremely good example of this is online social media and managing a firm’s online social media presence.

Marketing Mix 7P’s   

                        

Marketing Mix – People

Thorough research is important to discover whether there are enough people in your target market that is in demand for certain types of products and services. The company’s employees are important in marketing because they are the ones who deliver the service. It is important to hire and train the right people to deliver superior service. When a business finds people who genuinely believe in the products or services that the particular business creates, it’s is highly likely that the employees will perform the best they can.

Marketing Mix – Process

The systems and processes of the organization affect the execution of the service. So, you have to make sure that you have a well-tailored process in place to minimize costs. It could be your entire sales funnel, a pay system, distribution system and other systematic procedures and steps to ensure a working business that is running effectively.

Marketing Mix – Physical Evidence

In the service industries, there should be physical evidence that the service was delivered. Additionally, physical evidence pertains also to how a business and its products are perceived in the marketplace. It is the physical evidence of a business’s presence and establishment. A concept of this is branding. For example

·         When you think of “fast food”, you think of McDonalds.

·         When you think of sports, the names Nike and Adidas come to mind.

·         When you think of painkiller Panadol or Paracetamol comes to mind

You immediately know exactly what their presence is in the marketplace, as they are generally market leaders and have established a physical evidence as well as psychological evidence in their marketing. They have manipulated their consumer perception so well to the point where their brands appear first in line when an individual is asked to broadly “name a brand” in their niche or industry.

Marketing Mix 4cs

         

                                    

1: Cost

According to Lauterborn, price is not the only cost incurred when purchasing a product. Cost of conscience or opportunity cost is also part of the cost of product ownership.

2: Consumer Wants and Needs

A company should only sell a product that addresses consumer demand. So, marketers and business researchers should carefully study the consumer wants and needs.

3: Communication

According to Lauterborn, “promotion” is manipulative while communication is “cooperative”. Marketers should aim to create an open dialogue with potential consumers based on their needs and wants

.

4: Convenience

The product should be readily available to the consumers. Marketers should strategically place the products in several visible distribution points.