Table of Contents
- What Is the Marketing Mix?
- Product, Price, Place, and Promotion
- Marketing Mix Analysis
- Lesson Summary
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.
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:
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:
The modern market and industry environment are increasingly competitive. As such, marketers need to implement additional strategies to guarantee a successful marketing mix.
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.
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.
Tesco's approach to pricing demonstrates an example of price within a marketing mix. The retail store employs a low-pricing strategy due to its large sales volume. This pricing strategy is practical for large retail stores. Other retailers and food suppliers prefer an economical pricing strategy that targets price-conscious consumers.
Marketers can also adopt psychological pricing to influence buyers. This strategy appeals to consumers' emotions instead of logic in persuading them to purchase a product or service. For example, a bookstore 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.
Place refers to the location where the product can be purchased. In other words, it describes where and how customers can access and purchase your product or service. Examples of marketing mix place include online through web browsers or smartphone applications. Consumers can also purchase a commodity by visiting retail locations, events, and trade shows. Marketplace channels such as Walmart and Amazon are also excellent examples of place. Marketing mix place also includes sales professionals who act as a link between suppliers and consumers.
Product promotion involves a set of distinct marketing approaches designed to help marketers reach a wider target market and optimize advertising efforts. The challenge is developing and implementing the best promotion mix for a given brand. The process requires specific skills, experience, and market data pertaining to the company, industry, and consumers. Marketing mix promotion is valuable in improving communication with existing and potential clients, differentiating the company, segmenting the market, and enhancing the effectiveness of promotional tactics.
The four types of promotion are advertising, public relations, sales promotion, and personal selling.
Advertising - Advertising is a tool that marketers use to increase brand awareness. This non-personal product promotion tactic involves showing promotional videos to the masses through television, banners, webpages, email, and radio.
For example, advertising can be done through messenger platforms like SendPulse, which allows salespersons to create chatbots for Telegram and Facebook messenger apps. The chatbots are automated to collect orders, promote products, answer questions and register interested persons. Advertisers can create three chatbots and use them to send thousands of messages to an unlimited number of target customers for free.
Public relations - This promotional method entails researching how people perceive the brand and consulting a PR team to build and maintain a robust and attractive image. Companies plant exciting news and information on their platforms and media to shape public opinion regarding the brand.
Sales promotion - Sales promotion encourages immediate purchases through short-term activities. For example, businesses may offer coupons and discounts to engage with existing clients and target potential customers. It is a core component of marketing efforts.
Personal selling - Personal selling is the face-to-face or one-on-one communication between potential customers and sales representatives. Also known as direct selling, it influences people to purchase certain commodities. Business experts agree that personal selling is one of the most effective methods of brand promotion because it can be tailored to suit specific customers who are more likely to make the purchase. Nevertheless, it is also one of the most expensive sales practices because companies pay for each person's time.
We can develop a marketing mix analysis that shows the importance of a marketing mix and its impact on businesses from this lesson. A marketing mix aims at strengthening a company's marketing position. The primary objective is to make the brand memorable and attractive every time it engages with consumers. The operational aspects of marketing captured in the marketing mix provide a framework for guiding marketing activities. The model positively impacts businesses by creating value and meeting consumer demands. Ultimately, the marketing mix is designed to create a relationship with consumers and ensure their satisfaction.
Marketing is a fundamental business function that depends on the company's marketing mix. This lesson defines marketing mix as the set of activities and strategies companies use in product promotion. It is a core component of marketing plans that involves the four Ps: Promotion, Product, Place, and Price. The product refers to the specific item the business deals with, e.g., the Apple phone, while the price is how much the customer is willing to pay. On the other hand, place represents the location (such as online or physical marketplaces) from which the product/service is accessed, and promotion designates activities such as sales promotion, public relations, advertising, and personal selling. The primary objective of a marketing mix is to strengthen the organizational marketing position and establish a relationship with (existing and potential) customers. The model helps create value and meet consumer needs.
To unlock this lesson you must be a Study.com Member.
Create your account
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.
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.
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.
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.
Already a member? Log InBack