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29/04/2015 Marketing Mix
http://www.netmba.com/marketing/mix/ 1/3
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Marketing > Marketing Mix
The Marketing Mix(The 4 P's of Marketing)
Marketing decisions generally fall into the following four controllable categories:
ProductPricePlace (distribution)Promotion
The term "marketing mix" became popularized after Neil H. Borden published his1964 article, The Concept of the Marketing Mix. Borden began using the term in histeaching in the late 1940's after James Culliton had described the marketingmanager as a "mixer of ingredients". The ingredients in Borden's marketing mixincluded product planning, pricing, branding, distribution channels, personal selling,advertising, promotions, packaging, display, servicing, physical handling, and factfinding and analysis. E. Jerome McCarthy later grouped these ingredients into thefour categories that today are known as the 4 P's of marketing, depicted below:
The Marketing Mix
These four P's are the parameters that the marketing manager can control, subject
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to the internal and external constraints of the marketing environment. The goal is tomake decisions that center the four P's on the customers in the target market inorder to create perceived value and generate a positive response.
Product Decisions
The term "product" refers to tangible, physical products as well as services. Hereare some examples of the product decisions to be made:
Brand nameFunctionalityStylingQualitySafetyPackagingRepairs and SupportWarrantyAccessories and services
Price Decisions
Some examples of pricing decisions to be made include:
Pricing strategy (skim, penetration, etc.)Suggested retail priceVolume discounts and wholesale pricingCash and early payment discountsSeasonal pricingBundlingPrice flexibilityPrice discrimination
Distribution (Place) Decisions
Distribution is about getting the products to the customer. Some examples ofdistribution decisions include:
Distribution channelsMarket coverage (inclusive, selective, or exclusive distribution)Specific channel membersInventory managementWarehousingDistribution centersOrder processingTransportationReverse logistics
Promotion Decisions
In the context of the marketing mix, promotion represents the various aspects ofmarketing communication, that is, the communication of information about theproduct with the goal of generating a positive customer response. Marketingcommunication decisions include:
Promotional strategy (push, pull, etc.)AdvertisingPersonal selling & sales forceSales promotions
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Public relations & publicityMarketing communications budget
Limitations of the Marketing Mix Framework
The marketing mix framework was particularly useful in the early days of themarketing concept when physical products represented a larger portion of theeconomy. Today, with marketing more integrated into organizations and with awider variety of products and markets, some authors have attempted to extend itsusefulness by proposing a fifth P, such as packaging, people, process, etc. Todayhowever, the marketing mix most commonly remains based on the 4 P's. Despite itslimitations and perhaps because of its simplicity, the use of this framework remainsstrong and many marketing textbooks have been organized around it.
Marketing > Marketing Mix
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