Introduction to Marketing Mix
In simple words, marketing is defined as “putting the right product in the right place, at the right price and at the right time”. Marketing is a business process that helps in the creation of relationships with the customers and satisfying them by the products or services.
Marketing Mix is defined as the set of various marketing tools that an organization uses to pursue its marketing objectives that are to be accomplished. There are four broad levels of marketing decision, product, price, promotion, and place. These are mainly the 4 Ps of marketing. With the help of these variables, various strategic decisions are made that are essential for the even running of the organization.
Need for Marketing Mix
The marketing mix is a very important tool that is used to create the right marketing approach and its execution by using effective tactics. In the overall marketing approach, the assessment of roles of the product, promotion, price, and place plays a very important part. Through, marketing mix, you can find out the right type of marketing strategy for your business organization. The marketing mix is the initial step even before the creation of your business or marketing plan. It is very important to know that the decisions of the marketing mix, have a major impact on the positioning, targeting and segmentation decisions.
Types of Marketing Mix
- Product Marketing Mix: Comprised of Product, price, place, and This is mainly used in the case of tangible goods.
- Service Marketing Mix: This further has three variables; they are people, physical evidenced and process.
Hence, it is very important to have the right marketing mix at the beginning of the marketing plan. With time, the concept of marketing mix has given a new platform to launch new product or business.
The variables of Marketing Mix are as follows:
- Product in Marketing Mix
When you have decided to start a business, the first thing you should have is the product. Therefore, the initial variable of the marketing mix is the product. Before preparing a marketing plan, the first thing that is to be done is to take product decisions. A product can further be divided into the three parts- the core product, the augmented product, and the tertiary product. Following are some of the questions you need to ask yourself:
- What product quality would you be offering?
- What product are you selling?
- Whether the product will be branded or completely new?
Depending on the answers to these questions, many product decisions have to be made. These are the decisions that will affect all the other variables of the marketing mix. Therefore, until you don’t know the product, you won’t be able to decide any other variable of the marketing mix. So, if the features of the product are not fitting in the mix, you can change it in such a way, so that it finds a place for itself in the marketing mix.
- Pricing in the Marketing Mix
There are many different variables responsible for the change in the price of the product, therefore it is important to update constantly. The valuation of the products, the publicity, and the marketing expenses, or any fluctuations in the market etc. are the major concerns of the change in the pricing. There are chances that many of the factors may change independently, thus, the pricing should be such that it can bear the impact of the changes for a particular time period. Furthermore, if there occurs some change in these variables, then the pricing of the product has to be altered accordingly.
Apart from the factors mentioned above, there are other things that need to be taken into consideration at the time of deciding the appropriate pricing strategy. For instance, competition can be the best example. Hence, with the change in the price, the targeting and positioning of the product also get affected. Pricing is also used for sales promotions. Thus, on the basis of these factors, there are various pricing approaches, that can be implemented in the marketing mix.
- Place in the Marketing Mix
The place is referred to as the distribution channel of the product. If some product is a consumer product, it should be made available to the maximum places. And on the other hand, if the product is a premium consumer product, it will only be available at selective stores. And, if the product is a business product, there is a need for the team that will interact with the businesses and will make the product available to them. So, the place where the product is distributed depends upon the product and pricing decisions. Distribution of the product has a huge effect on the profitability of the product.
- Promotions in the Marketing Mix
Promotions in the marketing mix, include complete incorporated marketing communications, which in turn includes ATL (Above The Line) and BTL (Below The Line) advertising and the sale promotions. Product and the pricing decisions are the main factors on which the promotions are dependent. In case the product already exists in the market, then there is a need to recall the brand promotions, and in the case of the new product, brand awareness needs to be promoted. The targeting and positioning of the product are also decided by the promotions. In the case of effective promotions, you might need to increase the points of distribution. The prices may rise due to an increase in the brand equity of the product.
Role of 4 P’s of the Marketing Mix
At the time of deciding the strategy for a business organization, marketing mix (i.e. 4 P’s – Product, Price, Place, and Promotion) plays a very important role. This is the initial step when the marketing plan or a business plan is made. The marketing ix decision will also have an impact on the segmentation, targeting and positioning decisions. Segmentation depends upon the products, positioning can be decided on the basis of the price. Hence, marketing mix approach goes hand in hand with the segmentation, targeting, and positioning.