Marketing mix is a concept used by business owners, marketing executives and operations managers to describe the essential elements of a marketing strategy. Traditionally, four Ps are associated with the marketing mix product, price, promotion and place. The importance of marketing mix lies in its ability to help a business determine the suitability of a product or service for a particular target consumer base. Studying the marketing mix for your specific product or service starts by grasping the nuances of the four Ps.
Product, What Customer Want
Product is the most basic building block. When you think of your business' product, the goal is to visualize what consumers need or want. This can be tangible, something you physically sell, or it can be intangible, such as a service. No matter if the product is physical or intangible, it will have a lifecycle. Like the lifecycle of an organism, the lifecycle of a product proceeds from its creation through to its growth and eventual decline as sales begin to fall or as consumers adopt new products. According to Hubspot, businesses that are able to predict the lifecycle of a product can gain a competitive advantage by having new products or services ready for customers.
Price, How Much They're Willing to Pay
The price that a consumer is willing to pay for a product is of utmost importance to your business's marketing mix. Businesses need to make a profit, but that won't happen if the price of your product is more than customers are willing to pay. The rule of thumb is to set the price so that is complements the other components of your marketing strategy. If your product is perceived as luxury, for instance, you can charge more. However, if your product is geared toward a spend-thrifty consumer, it should be reflected in the price. Also important to keep in mind is the customers' view of the quality and value of your products. Market research is therefore invaluable in helping to determine price.
Promotion, How to Get the Word Out
Promotion is the tenet of the marketing mix that most often springs to mind when people hear the word "marketing." Promotion includes all the methods that a business uses to attract customers and alert people to the existence of a product., reports Mindtools. It incorporates elements of advertising, public relations, sales and customer service. Word-of-mouth and digital advertising are also essential components of promotion. Often, repeat clients come through the recommendation of friends and family and this is made easier with the ability to share information on social media networks. As with price, promotion tactics should match the product's perceived quality and value. If you're selling a luxury car, for example, the advertisements should reflect the luxury element of the product.
Place, Creating Strong Supply Lines
The fourth element of the marketing mix, place, is also sometimes called "distribution." This simply says that products must be easily accessible to consumers. If you run a physical store or service center, it should be easy for customers to find and in a location that will attract business. Online retailers must have recognizable web domains and easily navigable websites. Convenience for the consumers is the key.