The Marketing Mix is a marketing concept that incorporates the whole set of Resources accessible to marketers to be able to evolve well-organized actions and reach their sales penetration goals within a target market.
The marketing mix involves the whole set of marketing decisions and actions taken to ensure the success of a product, service or a brand in its market.
On a broader scale, the marketing mix model can be implemented to help decision-making in the perspective of a new offer on the market, and also to test an existing marketing strategy.
In 196O, Jerome McCarthy formulated Borden’s theory and presented four primary variables, namely the 4 Ps (product, price, place and promotion) in his publication “Basic Marketing: A Managerial Approach”.
A result oriented feature of this strategy has already contributed to several organisations’ success and it is extensively implemented by a numerous number of marketing experts.
In simple terms referred to as ‘product’, this is actually an offer that satisfies the requirements in a market.
This means that, a product can be a physical item or a service launched into the marker to meet the need after purchase and use.
Product policy describes the choice of attributes for products or services proposed by the firm this means the nature, quality, size, design and style, and so forth.
Additionally, it can consist of decision making proceedings in respect to the brand, packaging or appearance, content material label or the range of products.
The price stands out as the amount of cash the consumer will have to spend to be able to obtain the product or service. Pricing policy is comprised of the principles most typically associated with:
- Predetermined selling price, i.e. the retail price made available in retail outlets
- Special discounts
- Transaction terms and conditions
- Recovery terms
- Credit conditions
Pricing policy is not predetermined which enables it to change for better based on marketing promotions or even based on the life cycle of the product.
It requires to take into consideration a wide range of constraints as well as aspects, involving both producers and consumers:
- Cost value
- Product image
- Distribution expenses
- Price flexibility (i.e. the influence of a price change on consumer demand)
- Competition situations (monopoly, competition, and so on).
Place or Distribution policy
The P of place’ refers to the distribution policy.
It consists of:
- Geographical location
- Distribution channels
- Distribution networks
- Direct sales
Promoting and advertising decisions are those linked to communicating and selling to potential consumers. Considering the fact that these running costs can be massive compared to the product or service selling price, a break-even analysis is required to be carried out when coming up with promotion decisions.
It is very much beneficial to learn the true worth of a customer in an effort to figure out whether additional customers are actually worth the cost of acquiring them.
Promotion decisions include;
- Public relations
- Internet based promotions
In a nutshell, the total offer has to be made up of:
- the right product or service
- at the right price
- delivered in the right place at the right time
- supported by right kind of promotion