Market Mix

Market Mix

Marketing Mix is also called the “Four P’s of Marketing” as it mainly focuses on product, price, place, and promotion.

Market Mix

The term “marketing mix” is a foundation model for businesses, historically centered around product, price, place, and promotion.

The marketing mix has been defined as the “set of marketing tools that the firm uses to pursue its marketing objectives in the target market”.

These four elements of the marketing mix help to place the suitable product, at the right time, at the right price at the right place.

Each aspect has an influence on the others and can be adjusted to get the right combination.

The four P’s of marketing are discussed below but before them let answer the question of what is marketing.

It will help you understand why market research and understanding are required to design a compelling marketing mix.

Marketing Mix is also called "Four P's of Marketing" as it mainly focuses on product, price, place and promotion. These four elements of marketing mix help to place a right product, at right time, at right price at a right place. Each element has influence on the others and can be adjusted to get the right combination.

The four P's of marketing are discussed below. It will help you understand why market research and market understanding are required to design an effective marketing mix.
Market Mix

Product

A product is an item or a service that fulfills a specific customer need, want, or demand.

It can be a tangible item like a book, pen, or cell phone or an intangible service like hospitality and banking.

The right product or service effectively satisfies customers’ need, want, and demand.

The most common points that companies usually consider while designing a product or service are:

Aesthetic appeal: Are the products and packaging visually appealing or not?

Features/Benefits: Does it provide a customer’s desired features and benefits?

Functionality: Functioning smoothly or not?

Competition: Can it compete with other similar products or services available in the market?

READ  What is Marketing

Reliability: Is it durable or not?

Price

After finalizing the product or service, the next step is to decide the price.

Factors that are mainly considered to price a product or service are cost of production, target market segment, demand and supply, competitors’ price, and market’s ability to pay.

Some of the popular pricing strategies based on these factors are:

Cost-based pricing: The cost of production, distribution, and promotion are calculated.

Accordingly, the product or service is priced to recover the cost incurred and earn the profit.

Skimming: The company launches its new product at a relatively high price to recover the costs and gain maximum profit in a shorter time.

Later, it may reduce the price when similar products are available in the market at low prices.

Penetration pricing: Company offers its new product at a relatively low price.

It helps the product attract more customers and quickly enter the market segment.

Once it captures the required market share, the cost can be increased.

Economy pricing: Company keeps the production, marketing, and other costs low.

It also keeps the margins very low so that the product can be offered at a low price.

Place

The product should be available at the right place.

The place where a buyer would expect your product and your product would be noticed by plenty of buyers.

This element of the marketing mix covers the entire distribution system.

You can study the existing distribution channel and design yours accordingly to make your product reach the desired places efficiently.

The distribution channel can be direct or indirect.

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In direct distribution, your development goes directly to customer without involving any intermediary.

The indirect distribution may involve intermediaries like agents, retailers, wholesalers, internet, and distributors.

Promotion

Promotion involves making people aware of the presence of your product. Through promotion, companies differentiate their product from other similar products.

They educate people by providing relevant product-related information and encouraging them to buy.

There are many ways to promote a product or service. Out of these, you can choose the best ones that suit your budget and strategy to create a compelling promotional mix.

Effective Promotions

Some of the effective means of promotions are;

  • Public relations
  • Advertising
  • Sponsorship
  • Trade fairs and exhibitions
  • Social media marketing
  • Search engine marketing
  • Email marketing

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