The Marketing Mix

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What is the Marketing Mix?The Marketing Mix is the tactical or operational part of a marketing planMarketing decisions generally fall into the following four controllable categories:ProductPricePlace (distribution)Promotion

The 4PsThe 4Ps are the parameters that the marketing manager can control, subject to the internal and external constraints of the marketing environment.The goal is to make decisions that center the 4Ps on the customers in the target market in order to create perceived value and generate a positive response.

ProductThe term product in the marketing mix refers to tangible, physical products, as well as services.Some examples of the product decisions to be made include:Brand NameFunctionalityStyling QualityPackaging Questions to Understand ProductWhat does the customer want from the product/service? What needs does it satisfy?What features does it have to meet these needs?

Are there any features you've missed out? Are you including costly features that the customer won't actually use?How and where will the customer use it?What does it look like? How will customers experience it?What size(s), color(s), and so on, should it be?What is it to be called? How is it branded?How is it differentiated versus your competitors?What is the most it can cost to provide, and still be sold sufficiently profitably?

PriceThe companys goal in terms of price is to reduce costs through improving manufacturing and efficiency.Most importantly the marketer needs to increase the perceived value of the benefits of its products and services to the buyer or consumer

Price Cont.Some Example of pricing decisions to be made include:Pricing StrategySuggested retail priceVolume discounts and wholesale pricing Cash and early payments discountsSeasonal pricingBundlingPrice FlexibilityPrice discrimination

Questions to Understand PriceWhat is the value of the product or service to the buyer?Are there established price points for products or services in this area?Is the customer price sensitive? Will a small decrease in price gain you extra market share? Or will a small increase be indiscernible, and so gain you extra profit margin? What discounts should be offered to trade customers, or to other specific segments of your market?How will your price compare with your competitors?

PlacePlace is also known as channel, distribution, or intermediary. It is the mechanism through which goods and/or services are moved from the manufacturer/ service provider to the user or consumerDistribution is about getting the products to the customerPlace Cont.Some examples of distribution decisions includeDistribution channelsMarket coverage Specific channel membersInventory managementWarehousing Distribution centersOrder processingTransportationReverse logisticsQuestions to Understand PlaceWhere do buyers look for your product or service? If they look in a store, what kind? A specialist boutique or in a supermarket, or both? Or online? Or direct, via a catalogue? How can you access the right distribution channels? Do you need to use a sales force? Or attend trade fairs? Or make online submissions? Or send samples to catalogue companies?What do you competitors do, and how can you learn from that and/or differentiate?

PromotionPromotion includes all of the tools available to the marketer for marketing communication.It is the communication of information about the product with the goal of generating a positive customer responsePromotion Cont.Promotion decisions includePromotional strategyAdvertising Personal selling and sales forceSales promotionsPublic relations and publicityMarketing communications budgetQuestions to Understand PromotionWhere and when can you get across your marketing messages to your target market? Will you reach your audience by advertising in the press, or on TV, or radio, or on billboards? By using direct marketing mailshot? Through PR? On the Internet?When is the best time to promote? Is there seasonality in the market? Are there any wider environmental issues that suggest or dictate the timing of your market launch, or the timing of subsequent promotions?How do your competitors do their promotions? And how does that influence your choice of promotional activity?

What does it all mean?Marketing has come a long way from the 4Ps and yet understanding this marketing mix is for your product remains very relevant today. The marketing mix serves as an excellent touchstone for continually checking that you are covering all of the bases in your marketing campaign.

QUIZQuestion 1. Which is NOT one of the 4Ps? A. PriceB. ProductC. PeopleD. PromotionE. PlaceNext QuestionPractice QuizzesFor more practice quizzes please visit these sites:Revision Quiz - Marketing MixMarketing QuizMarket Planning and the Evaluation of Marketing OpportunitiesMarketing Mix QuizPro Profs Marketing Mix Quiz

VIDEOCreditsJones, J.C. (2012). Definition of Marketing Mix Product, Price, Place, and Promotion. Retrieved from http://ezinearticles.com/?Definition-of-Marketing-Mix---Product,-Price,-Place-and-Promotion&id=721799Marketing Mix. (2012). Retrieved from http://marketingteacher.com/lesson-store/lesson-marketing-mix.htmlThe Marketing Mix (The 4 Ps of Marketing). (2010). Retrieved from http://www.netmba.com/marketing/mix/The Marketing Mix and 4 Ps: Understanding How to Position Your Market Offering. (2012). Retrieved from http://www.mindtools.com/pages/article/newSTR_94.htm