The Marketing Mix is a set of actions which organizations use to launch or promote their brand, products or services in the market. The term “Marketing Mix’ was given by Neil Borden. These variables help organizations in making strategic decisions that are crucial for their smooth running.
The 4Ps of Marketing
There are 4 Ps that make up a typical marketing mix – Price, Product, Promotion and Place are:
Price: This variable refers to the value decided for a product. The Price of any product or service is decided on the basis of production cost, target market, supply – demand, ability of the market to pay, and a several other direct and indirect factors. Pricing can also be considered as a demarcation, differentiation and enhancement of a product image.
Product: This variable is used to denote the product or service actually being sold. A product can be tangible or intangible and should deliver a minimum level of performance to attract the end-users.
Place: This variable includes the site or location where the sale is made. The main purpose of the element “Place” in every industry is to attract large number of consumers making it easy for them to approach the “place” and buy the product/service in sell. Hence, it can be said that “Place” plays a major role in success of any retail business.
Promotion: It includes all the activities done to bring the product into the notice of users and trading companies. Activities to promote a product or service include online advertising, press reports, word of mouth, commissions, incentives and awards to the trade. Other activities may include direct marketing, consumer schemes, contests and prizes.
This technique includes print media, radio, television which are quite effective in enticing consumers making them aware of the brand’s existence. Organizations also promote their product and service on billboards, banners and hoardings at strategic locations such as heavy traffic areas, railway stations, crossings, bus stands to catch the eyes of people.
- Word of mouth
This has been a traditional way of promoting brands since ages. One satisfied consumer brings ten more customers along. In the same way, one dissatisfied customer can lead to losing ten more customers. Hence, both positive and negative word of mouth plays a crucial role in the success and failure of a brand. A positive word of mouth helps greatly in promoting brands amongst the customers.
What is the importance of the marketing mix?
The 4Ps of marketing mix are influenced by each other making up the business plan for any organization. The elements of marketing mix need a lot of market research, understanding, and consultation. When handled right, these elements can lead a business to succeed greatly.
