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Elements of a Marketing Mix

Edith Forsyth, Jennifer Lombardo
  • Author
    Edith Forsyth

    Edith Forsyth has taught High School Business for over five years. They have a bachelor’s degree in business administration from University of Evansville, Evansville, Indiana.

  • Instructor
    Jennifer Lombardo

    Jennifer Lombardo received both her undergraduate degree and MBA in marketing from Rowan University. She spent ten years in consumer marketing for companies such as Nielsen Marketing Research, The Dial Corporation and Mattel Toys. She is currently an adjunct professor of marketing at Rowan University and a social media marketing consultant.

Learn the four Ps of the marketing mix: Product, Price, Place, and Promotion. See marketing mix product examples, as well as price, place, and promotion examples. Updated: 01/27/2022

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What Is the Marketing Mix?

Business entails the buying and selling of products or services. How do you ensure a successful business? By promoting the buying and selling of goods through marketing strategies designed to drive sales and increase revenue. Marketing is fundamental to business operations and success. Modern companies appreciate and prioritize marketing functions. How do these organizations plan and execute effective marketing strategies? They use a marketing mix as the guiding framework.

Marketing mix is a term applied to the set of activities and strategies used by businesses to promote their brand, products, and services in the market. Typically, the four 'Ps' of Price, Promotion, Product, and Place make up the marketing mix. Contemporary business theories and approaches include additional 'Ps' such as People, Packaging, Positioning, and Politics. Nonetheless, the original 4Ps are the fundamental elements of the marketing mix.

The marketing mix is a component of the marketing plan. The model is vital within a business setting because it highlights key focus areas to ensure a comprehensive and effective marketing plan. The marketing mix provides a framework that guides marketing activities and strategies. Businesses that employ a marketing mix model appreciate the importance of strategizing on a broad range of marketing their brand. In this way, the framework allows compliant enterprises to reach a broader target market and focus on aspects that matter. Arguably, implementing a marketing mix helps companies develop and execute strategic marketing decisions during product improvements or when introducing new products.

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  • 0:07 The Marketing Mix
  • 0:35 Marketing Mix: Product
  • 1:36 Marketing Mix: Place
  • 2:24 Marketing Mix: Promotion
  • 3:11 Marketing Mix: Pricing
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Product, Price, Place, and Promotion

Understanding how the marketing mix works means understanding the classification and use of the four Ps (Promotion, Place, Price, and Product) in coming up with an effective marketing strategy. Marketing managers and professionals have alternative approaches to each of the four Ps depending on the target market and organizational objectives. In practice, the elements of product, price, place, and promotion are dependent on and complement each other. In this lesson, we examine each of these elements independently:

  1. Product - The product element within the marketing mix represents the commodity/item or service developed to meet and satisfy consumer needs/wants. Businesses sell products to meet market demand and generate revenue. A compelling marketing mix includes strategies to market brand products and services. Marketing experts recommend identifying and highlighting what differentiates the product or service from what competitors offer. It is also advisable to determine if complementary products can be marketed simultaneously.
  2. Price - Price is arguably the most critical decision factor for suppliers and consumers. It reflects what customers are willing to pay for a commodity or service. The importance of price means that marketing professionals need to prioritize it with regard to the marketing mix. A high price may push away customers, while a low price may negatively affect profitability. In determining optimal price, marketers need to consider the cost of development, distribution, research, marketing, and manufacturing. This strategy is known as cost-based pricing. Setting the price based primarily on perceived quality and customer expectations is another strategy. The pricing approach is known as value-based pricing.


E-ink price tag in Sydney supermarket

The use of price tag as a means of marketing


  1. Place - The third element in the marketing mix is place. Achieving a competitive advantage involves selling and distributing products within strategic locations. The type of product is a crucial factor in determining the business location. In the case of essential consumer products such as groceries and other necessities, the best place is convenience stores. These locations ensure such commodities are readily available. On the other hand, premium consumer products are available in select stores. These types of products cost 20% more than average category prices. Another alternative is placing the product on physical premises, online market, or both. Whatever decision the business makes will shape the overall marketing approach.
  2. Promotion - Product promotion is the foundation of marketing activities and strategies. Businesses promote their brand through sales, public relations, advertising, and personal selling. To ensure an effective promotion strategy, a company should consider the budget allocated to the marketing mix. The promotional aspect of a marketing approach integrates a carefully constructed message that incorporates details from the last three Ps (Product, Price, and Place). This message is designed to target, reach and convince potential consumers on why they need to purchase the product/service. Crucially, the business must also determine the best medium to pass the message. Other critical decisions include communication frequency.


The Four Ps of Marketing

Marketing mix incorporates of Price, Product, Promotion and Place


Notably, marketers must appreciate special marketing mix considerations because not all marketing processes are product-focused. For example, customer service businesses are fundamentally different from organizations that deal with physical products. In this case, a customer-centric approach to the marketing mix is recommended. This approach integrates additional elements that address unique customer and business needs. The additional Ps attached to the customer-centric model are:

  • People - Refers to the employees who represent the organization by interacting with clients and customers.
  • Process - Represents the method of providing client services. This marketing mix element integrates performance services to monitor customer satisfaction.
  • Physical evidence - Relates to the physical premises, area, or space within which customers engage with company representatives. Key considerations include the layout, building, signage, and furniture.

The modern market and industry environment are increasingly competitive. As such, marketers need to implement additional strategies to guarantee a successful marketing mix.

Marketing Mix: Product Example

The product a business deals with is a critical element of its marketing mix. So, what is a marketing mix product example? Tiffany & Co. is a hugely successful company. The organization's marketing mix involves applying its product as its competitive edge. The marketing mix product for Tiffany & Co. is the signature diamond cut, known to customers as a Tiffany True Cut, available only at their stores. The packaging of the Tiffany Blue product the company offers to customers is very distinctive such that the color was named after the brand.

Another example is Apple Company's product which has impressive advertising for its smartphone. Its business model focuses on innovation to leverage the competitive advantage. Furthermore, the product design sets the brand apart from other players in the smartphone industry.

The marketing mix can also be based on services. The difference between products and services. A product is a tangible item availed in the market for acquisition and consumption by the customer, while a service is an intangible item offered through the output of individuals.

Marketing Mix: Price Example

In a marketing mix, price is what the customer is willing to pay to acquire a product or service. It refers to the overall sacrifice of the consumer for the product. This sacrifice includes the effort a consumer makes to purchase the product. Successful companies implement strategic choices in determining the marketing mix price. An optimum price is crucial in achieving business objectives. While the other three P's represent cost, the marketing mix price is the only component that generates returns.

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Frequently Asked Questions

What exactly is the marketing mix?

This term is applied to the set of activities and strategies used by businesses to promote their brand, products, and services in the market. Typically, the four 'Ps' of Price, Promotion, Product, and Place make up the marketing mix.

Why is a marketing mix important?

The marketing mix is vital within a business setting because it highlights key focus areas to ensure a comprehensive and effective marketing plan. The marketing mix provides a framework that guides marketing activities and strategies.

What is an example of price in the marketing mix?

A good example of price in the marketing mix is where a book store sets the price at $99. The price seems more attractive than $100, although the difference of $1 is almost negligible. From the consumer's perspective, $99 is cheaper and more attractive.

What is example of product in marketing mix?

An example of a product in the marketing mix is Apple Company's product. The organization has impressive advertising for its smartphone. Its business model focuses on innovation to leverage the competitive advantage. Furthermore, the product design sets the brand apart from other players in the smartphone industry.

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