The marketing mix is the set of controllable tactical marketing tools (product, price, location, and promotion) that the business combines to achieve the desired response in the target market. By Philip Kotler and Gary Armstrong.
The marketing mix refers to a set of measures or tactics that a company uses to promote its brand or product in the market. The four P’s that make a typical marketing mix are product, price, place and promotion.
The extended marketing mix (7P) is the combination of seven marketing elements that aim to work together to achieve the objectives of a marketing strategy. The seven elements are: product; price; place; promotion; people; process and physical.
Product: Products refer to all goods and services. We don’t pay for the specific product, but for the benefit it brings. So, in simple terms, the product can be described as a set of benefits that a marketer offers to the consumer at a given price. When we buy a pair of shoes we are actually buying comfort for our feet, while when we are buying lipstick we are actually paying for beauty because lipstick probably makes us look good.
The product can also be in the form of a service such as air travel, telecommunications, etc. Therefore, the term product refers to the goods and services that the organization offers for sale.
Price: Price is the amount charged for a product or service. Determining the price of the product is a complicated task. Many factors such as the demand for a product, the costs involved, the consumer’s ability to pay, the prices charged by competitors for similar products, government restrictions, etc. must be taken into account when setting the price.
In fact, pricing is a crucial decision area as it affects the demand for the product and also the profitability of the company.
Place: Goods are manufactured for sale to consumers. They must be available to consumers in one place. where you can shop easily. The wool is produced on a large scale in Ludhiana and you can buy it from a nearby market shop in your town. Therefore, it is necessary that the product is available in stores in your city. This implies a chain of people and institutions such as distributors, wholesalers and retailers that make up the company’s sales network (also called the sales channel).
The organization must decide whether to sell directly to the retailer or through distributors/wholesalers, etc. You may even plan to sell it directly to consumers.
Promotion: Advertising is an important part of the marketing mix as it refers to a process of informing, persuading, and influencing a consumer to choose a product to buy. Advertising is done through personal sales, advertising, public relations, and sales promotion. This is done primarily for the purpose of informing potential consumers of a product’s availability, features, and uses. Gets the potential consumer interested in the product, compares it to the competitor’s product, and makes their choice.
People: The people who contact customers to deliver the product
Process: The systems and processes that deliver a product to a customer
Physical: The elements of the physical environment experienced by the customer
A key implication of a marketing mix is that all seven elements must work even more closely together for marketing to be effective.
The marketing mix is as follows:
1) Personal Selling
It is the most important, most effective, and most expensive form of advertising. It is the best means of verbal or personal or direct communication.
It is a means of mass communication. Advertising is also an important form of sales promotion and costs less than selling in person.
3) Sales Promotion
Marketing activities other than advertising, public relations, and personal selling are referred to as sales promotion. It serves as a connection between personal selling and promotion.
Stimulates demand for a product or service or business entity through advertising on radio, television, etc.
5) Public Relations
It is a form of advertising. Create, develop and maintain a bright image of an organization in public.
6) Advertising at the point of sale
Advertising at the point of sale is more effective. Manufacturers or retailers properly represent products.
7) Direct Mail
Direct mail is sent to selected customers. This will attract customers to buy the products.
8) Other types of promotion
Samples, coupons, discounts, special bonuses, etc. They will play a key role in the company’s overall marketing strategies.
Why marketing mix is important?
The concept of the marketing mix is the basis of modern marketing management. The concept is important for the following reasons:
There are valuable hints for the allocation of resources: The decision about the allocation of financial and human resources depends on the concept of the marketing mix. Because these resources are limited and valuable, they must be used in the most sensible way.
Helps distribute responsibilities: The challenging work of marketing is the result of teamwork. This means that responsibilities should be assigned to members of the marketing team.
Facilitates communication: Communication is an essential part of the marketing mix. Through advertising measures, the company must inform customers about its products.
Helps to achieve the goal: The goal of the company may be to maximize profit. This can be achieved by combining the marketing elements in the right proportion.