The marketing mix is an important concept to learn about in business. The marketing mix allows companies to understand what users like and dislike about different products and services. Research will be needed to find the correct marketing mix for your business.
Marketing mix is the set of marketing tools a company uses to achieve a certain business goal or customer satisfaction. Its main components are called the “4 Ps”: product, price, place, and promotion.
What is a Marketing Mix?
The marketing mix is the set of actions a business takes to build and market its product or service.
By doing this, you are able to make sure that your customers receive the right product at the right time and place at the right price.
The marketing mix traditionally consisted of the 4 Ps of marketing, but nowadays 3 additional tools have been added, giving it the 7 Ps of marketing. The marketing mix elements are used to generate the response businesses want from their audience.
Importants of Marketing Mix in Business
1) It helps in the creation of a clean mix
All the Ps in your marketing mix should be compatible with each other in order for it to work effectively. The price of the product should be in line with the location in which it is placed. It is important that the product is compatible with the promotions that are being offered. It is important to remember that each of the P’s is intrinsically linked to each other in general.
As a result, when you are designing a marketing mix, you are forming a chain of strong bonds as part of your strategy. In order to make the chain longer, these bonds will guide you forward in making it longer. There is always a need to look at the big picture when you are considering adding a new feature or changing existing things. This helps in creating a clean marketing mix for the product when you are thinking about adding a new feature or changing existing things.
2) The marketing mix is important in the development of new products
When the company is designing an existing product, there may be any number of ideas that can arise for a new related product that can be designed by the company in order to enhance the existing product. This type of product might come at a different price, have a different location, and even have different promotions. Despite this, it is possible to classify it as a new product and hence, when designing the marketing mix, the company can come up with good ideas for NPD as well.
3) Marketing mix helps increase the product portfolio
If you want to increase the depth or length of a product or if you want to increase the product line and length, then you have to make minor changes to the product. You are, in essence, making minor changes to the marketing mix itself by making these changes. You are making changes to the features of the product, to its pricing, and perhaps even to its promotions as part of the changes you make. It is therefore possible to end up with a broader product portfolio by altering the marketing mix and certain features within it in such a way as to produce a more balanced marketing mix.
4) It is a guide to help a business improve its performance
As part of the service marketing mix, physical evidence was an important P. If a restaurant or an interior design business is able to realize how important physical evidence is, then naturally they will take measures to improve their physical evidence, which will lead to the business bringing in more customers.
The importance of marketing mix cannot be overstated, as it goes beyond one P. In an organization, people and processes are equally important, and optimizing both can have a significant impact on the organization’s efficiency and effectiveness. As a result, if someone wants to improve their business and wants to do a gap analysis, marketing mix is a very useful tool to use.
5) It helps in the differentiation of products
When you analyse the marketing mix of your competitors, you will find that there are many different ways in which you can differentiate yourself from your competitors. It is possible that the competitor has poor promotional campaigns, so by analysing them, you can come up with better promotions for your own product.
As a competitor, he might have poor placement of products, he might have the wrong process in place, or he might have the wrong people in place for the job. This can all be improved upon, giving you a better marketing mix in your market and, as a result, a competitive advantage over your competition.
6. It enables you to be dynamic when you need to be
When a company is well prepared, it is also well prepared when disaster strikes. It is important for a company to be prepared to respond to a recession or during a difficult business environment. It is important for the company to have a dynamic nature at such times. There is a need for such a company to have a better understanding of its product, processes, people, promotions, and all of the other P’s. If it understands them, it will respond with better agility.
As a result, marketing mix result, the marketing for an organization in many different ways. I believe one of the best things about analysing and understanding the marketing mix is the fact that it is not a lengthy procedure, and the ROI for the time invested is a lot higher
What are the Elements of Marketing Mix
Developing the correct marketing mix for your product or service starts with understanding the Ps of Marketing.
The 4 Ps of Marketing Mix
Product is a good (such as music players, shoes etc.) or service (such as hotels, airlines, etc.) that is offered as a solution to satisfy the needs of your customer.
When developing the product, you need to consider its life cycle and plan for different challenges that may arise during the stages of it. Once the product reaches its final stage (sales decline phase), it’s time to reinvent the item to win back the customers’ again.
The next element of the marketing mix is the price your customer is willing to pay for your product. This helps determine the profit you will be able to generate.
When setting a price for your product, consider how much you have spent on producing it, the price ranges of your competitors, and the perceived product value.
This is about the distribution center of the product and the methods used in distributing it to the customer.
Wherever this is, it should be easily accessible to the customer. For example, if you have a physical store, it should be located in a place that can be easily discovered by the customer. If you own a website to market your product, make sure it is easily navigable.
Promotion refers to the methods a business uses to gain the attention of the customers to their product. These includes sales promotions, customer service, public relations, advertising etc.
When creating your promotion strategy, consider the tactics used by your competitors, the channels that are most effective in reaching your customers, and whether they match the perceived value of your product.
The Seven Ps of the Marketing Mix
Sometimes, the four Ps are expanded to include the seven Ps. In addition to the usual four Ps, the seven Ps include physical evidence, people, and process.
- Physical evidence. Anything tangible related to a product or the physical environment in which a service takes place. Physical evidence may include product packaging, delivery receipts, signage, or the layout of a physical store.
- People. Employees, including those who interact directly with customers (such as sales, customer service, or delivery people) as well as staff recruitment and training. This category includes how well employees perform their jobs, how they appear to customers (for example, what their uniforms look like), and how customers feel about their experience.
- Process. Anything within the organization that has an impact on how a product or service is handled by employees and delivered to consumers. Some examples are the order in which employees must perform tasks, how many queries salespeople receive and where they direct customers for help, or how performance is tracked and measured. It also covers which parts of the process are standardized and which have room for customization on a per-customer basis.
The Four Cs of a Marketing Mix
In the 1990s, the four Ps were adapted to the four Cs to place less focus on the business and more on the customer.3 The four Cs are consumer, cost, convenience, and communication. In some instances, the four Cs may be more applicable to a digital marketing mix than the four Ps.
- Consumer. The wants and needs of the consumer. Under this model, a business should be focused on solving problems for consumers rather than creating products. This requires studying consumer behavior and needs, along with interacting with potential customers to find out what they want.
- Cost. The total cost of acquiring a product or service, which goes beyond the price tag. Cost includes the time it takes to research a product and make a purchase. It also may include the cost of trade-offs that consumers must make, such as forgoing another purchase, or the cost of guilt they experience for buying or not buying a product.
- Convenience. How easy or difficult it is for consumers to find and purchase a product. The rise of Internet marketing and purchasing has made convenience more important in customer decisions than physical place.
- Communication. A dialogue that depends as much on the consumer as on the seller. This includes advertising, marketing, and media appearances. In the digital world, however, it also includes emails that customers either opt into or initiate, brand ambassadors, blog posts, websites, sponsored product placement, and social media channels.
How to Develop a Marketing Mix
Define Your Goal and Set a Budget
Developing an effective marketing mix starts with setting the right goals. Establish what you want to achieve with your marketing plan; is it to grow sales? Acquire more customers? Build brand awareness?
Once you have set realistic and measurable goals, determine how much you are willing to spend on achieving your objectives.
Study Your Target Customer
In order to build a product or service that your customers would want to buy, you need to know who they are.
Find different segments in your target audience and create separate customer profiles for each. Refer to these when you are developing your strategies.
Identify Your Unique Selling Proposition
Clarify what your unique selling proposition is through customer surveys, interviews, focus groups etc.
Here you will identify the benefits your product or service will bring to your customer, and how you are better than anyone else in solving their problems.
Understand Your Competition
Carry out a competitor analysis to understand the different strategies and tactics used by your competitors. This knowledge will be especially helpful when you are creating your pricing strategy.
Record important information about your competitors on a competitor profile like the one below
Identify the Unique Features of Your Product
List down the unique qualities and the value of your product. You can build on these when you are marketing it to your customers.
You can use the mind map below when identify the unique features of your product.
Create a Pricing Strategy
Using the competitor research you have done, build a pricing strategy. Make sure that you have not overpriced or underpriced your product.
Choose Your Distribution Channels & Promotional Methods
Choose the channels you will be distributing your product through based on the type of your product or service and your target customer.
And select the promotional techniques you want to use based on your budget, again considering the customer and your product.
Marketing mixes are important for businesses to gain brand awareness, reach more customers and increase sales. The four parts of a marketing mix are product, price, place, and promotion.