Marketing Mix is a mix of marketing components that are used by the company to achieve its marketing objectives. These components can be considered as “marketing tools” because they are used as weapons for attaining success in marketing activities.
Elements of Marketing Mix
The task of marketing involves developing, communicating, and delivering customer value and these tasks can be accomplished successfully through four elements/components of marketing. They are Product, Price, Place, and Promotion. These four elements have become the synonyms for the term “marketing mix” and are popularly known as the 4 P’s of marketing. The 4 P’s of marketing mix focusing on target market customers is depicted in the following figure
1. Product
The first “P” of Marketing Mix is product. It deals with producing the desired product for the target customers. Product might include tangible goods or intangible services or a mixture of both. The various sub-components of the component ‘product’ are product attributes, product quality, warranty, packaging, branding, product benefits, tangible goods, intangible services, installation etc. A product is produced by the company to fulfill the needs and requirements of the target market audience
2. Place
A product can be made available to the target market customers through distribution channels. The various decisions to be taken pertaining to place are type of distribution channels to be setup, types of intermediaries, place of storage etc. The objective is to make sure that, the right products and services are accessible in right quantities, at the right time and in the right place.
3. Promotion
The third ‘P’ – promotion is related to communicating with the target customers and other participants of the distribution channel regarding the product offered by the company. Promotion is nothing but promoting the product in the market. The four main sub-components of promotion are Advertising, Public Relations, Sales Promotions and Personal Selling.
4. Price
Setting the right price for the product is very essential right from production till its final delivery to the customer with the help of appropriate promotional mix. Price is the amount paid by the customer, as an exchange to the product/service purchased by them. While deciding the price of a product, the aspects like – type of competition prevailing in the market place and cost involved in marketing mix have to be taken into consideration.
Significance of 4 P’s of Marketing Mix
The 4 P’s of marketing include price, product, promotion and place. When these key elements are combinely used. They can effectively boost and promote the unique value of a brand and help it stand it stand out from the competition. The significance of the 4 P’s of marketing is discussed as under,
- 4 P’s serve as a great place to start planning for the product or even to examine the existing product offering.
- 4 P’s combined helps a firm in growing its revenue once the customer’s needs and desires are verified.
- The needs of customers change with the change in business environment. The 4 P’s forms a balance between the market and the firm.
- As 4P’s are interrelated to each other, an integrated approach towards marketing is formed.
- 4 P’s can also lead to customer-oriented marketing as a link is formed between customer and the firm.
Factors Affecting Marketing Mix
The various factors influencing the company’s marketing mix can be broadly classified into two groups:
1. Market Factors
Market factors are uncontrollable factors and they influence the marketing activities of the company. Market factors,
(i) Competition in the Market
The competitive situations prevailing in the market must be examined properly, while taking any decisions regarding the company’s marketing mix. The products offered by the competitor, products quality, their marketing strategies etc., should be taken into consideration while designing the company’s marketing mix.
(ii) Government Regulations
The interference of government on product prices, product quality, distribution mechanism and product packaging are very high. The rules and regulations of the government influencing the company’s marketing activities should be taken into consideration while planning the marketing mix
(iii) Customers Needs and Wants
The customers needs, wants and preferences change as per the changes in their family income, social status, fashion and so on. So, it is the responsibility of the marketing manager to keep track on the changing needs, wants, preferences of the customers and the impact of such changes on the product demand.
(iv) The form of Distribution System
The type of distribution system followed and the nature and behaviour of distributors should be taken into account while planning the marketing mix because the distributor’s behaviour, their attitude, their perception regarding the product and the way they do their work directly influences the customers.
2. Marketing Factors
Marketing factors are controllable factors and company can blend these factors as per the requirements of the market. Marketing factors comprises of the following:
(i) Personal Selling
Salespersons play a significant role in marketing as they are the people who convince customers, that company’s products can better satisfy their needs and wants. It is the responsibility of the marketing managers to take decisions whether to use personal selling in making sales or not.
(ii) Product Packaging
Product packaging has significant impact on sales. If a marketing manager wants to sell its products in packs then the decisions regarding size of packing, quality of packing and design of packaging should be taken with due care. Some customers buy the products due to its attractive packing.
(iii) Physical Distribution
Producing the product and creating a demand for the product is not enough. Apart from this, the products produced must be made available to the customers in the market. And for this the marketing manager must take decisions, pertaining to physical distribution of products comprising of transportation, warehousing and management of financial resources. These decisions help in making products available to the customers at right tnne, at right place and at reasonable cost.
(iv) Brand Name
The marketing manager should decide on the brand name to its company’s products. One brand name may be chosen for the variety of products produced by the company or sometimes different brand names may be chosen for same products with different quality. Sometimes, products may be sold with no brand name.
(v) Marketing Research
Marketing Research is one of the sources used to gather information regarding the market. This gathered information is taken into consideration while designing the marketing mix of the company.
(vi) Channels of Distribution
The three types of channels of distribution are:
- Distribution of products from producers to final consumer directly.
- Distribution of products from producer to retailer and from retailer to final consumer and
- Distribution of products from producer to the wholesaler, wholesaler to the retailer and then from retailer to the final consumer. The marketing manager may either decide to use same kind of distribution channel to all the products or may decide to use different kinds of distribution channels to different products.
(vii) Advertising
Advertising largely influences product demand. Advertising is not only used to provide information to the customers about the products but also used to retain the demand of existing products.
(viii) Product Planning :
The Marketing Manager must plan the product in such a way that the product planned is in a position to satisfy the needs and wants of the customers more efficiently.
(viii) Sales Promotion
In addition to advertising and personal selling policy, the company must decide its sales promotion policy. Sales – promotion campaigns have to be arranged to increase the sales volume of the company’s product. Some popular methods available for promoting sales are gift coupons, discounts, free samples etc.