What is the marketing mix?
A marketing package refers to a set of actions or tactics that a company uses to promote its brand or product on the market.
The concept of a marketing mix is no different from the usual marketing strategy, which is being developed to bring the company to a certain level.
Almost all methods of promotion are based on the marketing complex. Simply put, this is marketing divided into components.
Marketing mix as a term appeared thanks to the American Neil Borden.
Neil Borden in the 40s of the XX century began to use the concept of “marketing mix”, and then developed a technology that combines different tools. Initially, the marketing complex consisted of 12 elements. Such a number made it difficult to work on the strategy. The basic four P model is more convenient for developing a marketing strategy. Therefore, it is used in any field of business.
The goal of integrated marketing is to increase the demand for the product and make a profit. The strategy allows you to create a product that meets the needs of customers at an adequate cost, but at the same time with financial benefits for the business.
The marketing mix model is the main element of any business strategy. The model is simple and versatile to use, and is a kind of checklist for the effective development of the company’s product on the market. It is because of its simplicity that the marketing mix model can be used by anyone — even a person who is not a marketing specialist.
There are two types of marketing mix:
1) Product marketing is a mix. It consists of a product, price, location and promotions. This marketing complex is mainly used in the case of tangible goods.
2) Marketing of services is a mix. The marketing package of services includes three more variables: people, physical evidence and process.
Elements of the classic marketing mix 4P
Ask the question: what are marketing mixes and what does it consist of?! A marketing package is a set of four decisions that must be made before launching any new product. Variable environmental factors force companies to regularly review their marketing strategy. For its implementation and control, it is divided into four directions, each of which corresponds to the Latin letter “P”. These four P represent some elements of the marketing mix.
These four variables help the firm in making strategic decisions necessary for the smooth operation of any product/organization.
The marketing mix defines the following elements:
product – functionality, quality, product appearance, packaging and brand. This also includes guarantees, support and service.
price – cost, discounts, promotions, bonuses, payment terms and conditions.
promotion – advertising and PR, direct sales, media and budget.
place of sale – participants in the product distribution chain, market coverage, geography and places of sale, logistics.
These factors are applied comprehensively to improve the efficiency of the organization by meeting the needs and expectations of customers. All elements work in the system. It is important not just to establish the sale of goods, but also to apply means of influencing the market. Work on the final result begins from the moment of product development right up to its sale. Manufacturing takes into account certain consumer properties, pricing, place of sale, delivery options, media channels, interaction with the buyer – each stage is important to achieve the main goal.
The combination of these factors is used to meet the needs of potential buyers and improve the efficiency of the company.
- The product is what the company sells. It can include either a product or a service. In general, the product is everything that the consumer wants and is willing to pay money for.
The product will be in demand and will exist only if people are ready to buy it. For this reason, the product must have specific qualities that are in demand from the relevant segment of consumers.
The very first thoughts and decisions should be about the product. After all, this is the basis of your marketing plan. Product packaging also plays an important role in its promotion on the market. It is part of your company’s image, so pay great attention to its development.
- The price is not just a figure for which the product is sold. This is a set of all the inherent parameters that determine the final cost for the buyer.
Product packaging also plays an important role in its promotion on the market. It is part of your company’s image, so pay great attention to its development.
Pricing can be different and depends on many different variables, so it is constantly updated.
The main factor in pricing is the cost of the product, advertising and marketing costs, any price fluctuations in the market, etc.
Marketers need to calculate the price with special accuracy.
The importance of the price lies in the fact that it determines not only how much the manufacturer will earn on the sale of its product, but also whether the manufacturer will be able to exist by selling the product at the price that the market accepts.
- Location – assumed territories, wholesale warehouses, retail outlets where the product is available for purchase by consumers. Moreover, this is not a simple enumeration of points of sale, but also logistics, how the product gets into them.
If a product is created for a general circle of consumers, it should be presented and available much more widely. On the other hand, if the product is a premium consumer product, it will only be available in selected stories. And if your product is focused on a business niche, then it is more logical and better to find a team that interacts with enterprises and makes the product available to them. Thus, the place where the product is distributed depends on decisions about the goods and prices.
4 Promotion is an element of marketing that ensures brand awareness and customer loyalty.
The example of promotion can be highlighted: advertising, promotions, discounts and so on.
The choice of means and methods of promotion depends directly on your budget, the information that you want to convey to the consumer and the goals that you have already achieved /plan to achieve, in accordance with your business plan.
Product advertising refers to all possible channels of informing the end user: radio, TV, outdoor. Recently, Internet advertising has been gaining more and more popularity due to its low cost.
Promotion also refers to activities aimed at increasing brand and product awareness. Such events include press releases, exhibitions, sponsorship, seminars, conferences and various charity events.
The right kind of promotions affects all the other three variables – product, price and location. If the promotions are effective, it is possible to increase the distribution points, increase the price due to the growth of the brand equity of the product. Profitability can help you launch even more products.
The role of the marketing mix in the strategy
The marketing mix plays a crucial role in determining the strategy of the organization. This is the first step, even when a marketing plan or business plan is being developed.
Simply put, it is “the ability to see and anticipate.” But, in addition, it is also “intellectual flexibility”: ability to adapt to changing socio-economic conditions. If an entrepreneur is used to thinking strategically, then he will approach his business thoughtfully, with the presence of a marketing strategy for development.
The above four marketing points give you a general idea of the marketing structure of the product.
Having a strategy means that you have found the right path. Otherwise, you do not know how to go to the goal, and you walk in different ways. In addition to strategy, the following are important: consistency in building a business, willingness to see problems that can prevent you from doing business successfully and the ability to avoid mistakes.