The marketing mix comprises the 4 P’s such as – Product, Price, Place and Promotion
Product – A product is a tangible or intangible goods and services that satisfy the needs and wants of the consumers. A business should produce the right type of product according to the demand of the consumers. The marketers must implement the product life cycle stages by identifying the introduction, growth, maturity and decline stage.
Price – The perceived value of the product by the customers is determined by the Price. If the customers positively perceived the product value, then the product can be successfully priced. But when the customers perceived negatively about the product, then the product needs to be sell with underpricing.
Place – In this element, the business distributes and positions their product for selling it to the buyers. The different distribution strategies involve –
· Intensive distribution – This type of distribution strategies is used to sell out the low priced products. Example – soft drinks, snacks, chocolates etc.
· Exclusive distribution – The products in exclusive distribution strategies are generally high priced and sold to a single outlet in the market.
· Selective distribution – Some selective products are sold in this category of distribution. Example –household appliances, computers, television etc. A small number of retail outlets distribute these products.
Promotion – Promotion boosts the sales and brand recognition of the products. A firm can promote their products by adopting different methods i.e. advertising, public relations, sales promotion etc. These methods are defined as -
· Advertising – Advertising is a paid communication which involves social media, print media and radio commercials.
· Public relations – This method is generally free of cost involving exhibitions, seminars, sponsorship, press releases, conferences and events etc.
· Sales promotion – Word of mouth is a most common method of communication. Example of sales promotion is an online social media.
The term ‘Marketing mix’ means to produce the right product in a right place, at the right price and at the right time. The four elements of Marketing mix are explained as -
Product – The product is a tangible item that are provided by the organization to their target customers. Marketers should create an adequate product mix for satisfying the demand of their customers.
The organization must answer the following questions for developing the right product –
· What are the needs of the customers about the particular product or services?
· How will the customers use the product?
· What is the name of product?
· What are the color, shapes and sizes of the products and service?
· Wat are the different features of the product?
Price – It is an important element of the marketing mix. Pricing determines the revenue, income and profitability of the enterprise. The marketer should consider the pricing strategies while setting the prices of the product. These strategies are of two types–
· Skimming Pricing
· Penetration Pricing
The business should ask some questions for their own self while setting the product pricing. These
questions are –
· What is the perceived product value of the customers?
· How much the business bears cost while producing the product?
· How can the business adjust the prices according to the changing needs of the consumers?
· What kind of customers the business wants to target?
Place – The strategy of distribution will help the organization to assess that what are the channels are most suitable for the customers. It involves that how the product will be accessed by the final consumer.
The following questions needs to be answered by the organization while developing the distribution strategy –
· Where the clients look for the goods and services offered by the organization?
· How the distribution strategy differs from their competitors?
· Do the organization require a strong sales force?
· Do the organization sell their products in an online store?
Promotion – An organization can promote their product through word of mouth, sales promotion and other strategies. The organization can choose the method of communication according to their budget. However, some questions are considered by the business for promoting the products and services –
· What are the promotion strategies used by the organization?
· What are the promotional strategies used by the organization’s competitors?
· What is best time for promoting the product?
· Will the method of communication reach to the target audience or not?