Posted in Marketing and Strategy Terms, Total Reads: 6862
Definition: Marketing Mix
Marketing Mix is a tool which a marketer uses to formulate a product/service offer using the 4 P's of marketing - Product, Place, Price, Promotion (7 Ps in case of service ; Physical Evidence, People, Process). The term Marketing Mix is attributed to Neil Bordon.
The term is named marketing mix because it suggest how a marketer mixes various elements(Product, Price, Place, Promotion etc) in order to make a relevant/just right offering to the customer.
The main objective here is to make the right product at correct price at the right place with right promotion.
Let us talk more about the various elements in the marketing mix
Product Marketing Mix
1) Product : It is the main part of the offering, the product itself. It is most important aspect of the mix. Product is something which has some functional value and can be used by the customer to achieve something. A marketer needs to define his product very carefully thinking about its value, its USP, features, competition etc
2) Price : Pricing the second most important element in our marketing mix. This is value we will get in exchange for our product. This is what the customer will pay in return for the utility of the product. Pricing is mainly determined by the cost of the product and also how much the customer would be willing to pay. If we price it too high no one buys, if we price it too low, company makes losses. So we have to devise the right pricing strategy to make our marketing mix perfect.
3) Place: Also called the Distribution. If we are making a product as the right price, that is not enough, we need to make it available at the right place too. The customer mostly would not come to you until and unless our product and price is unbeatable. The product needs to be where customer is likely to buy. If we are soft drink manufacturer and the product is not available in grocery stores, supermarkets, restaurants etc then the first two elements of marketing mix are of no use and the offering fails.
4) Promotion : Also referred to as Communication about the product. This is the 4th element which means the communication done about the product to the customer. Advertising on TV, print and digital media would come under promotion.
Service Marketing Mix
5) Physical Evidence : A service is intangible but there has to be a reassurance to the customer that service happened. It can be a receipt of a service or may be an invoice. Physical evidence should be positive meaning that customer should be assured that service completed as expected.
6) People : These are the employees which help deliver the service e.g. delivery boy or a cab driver. They may become the face of the service hence are very important that is why very important to chose right people.
7) Process : The steps undertaken for completion/delivery of the service. The process is very crucial. The process should not only consist of the positive path but should also should consider the negative paths to address issues in the service delivery. e.g. Complain management, reverse supply chain etc
There is an alternative theory of 4 C's(Commodity, Cost, Communication, Channel) also which also is similar to 4 Ps.
Example of Marketing Mix
ABC ltd wants to launch a new Burger in menu. So as first element product, we should be sure about the burger. The ingredients-bun,patty,vegetables,other elements like cheese and sauces should be well researched and thought upon. Once the approved burger is ready, we need to think about the Price. If ABC already has burgers in the menu, they can use comparative pricing along with the cost incurred to make a burger. They cannot afford to lose customers on the price.
In case of ABC, place can be the factory owned restaurants and franchise partners.
Being a fast food vendor, promotion becomes very important here. Promotions can be done through advertising on TV, radio, internet etc. Also in restaurants branding which would inform existing customers about the new product offering in the restaurants. Offers, promotional gifts can be included on every purchase of the new burger.
So Marketing Mix in simple terms is a tool which can be used to mix various elements in right proportions to make the best possible Product/Service Offering.