Marketing Mix
This article covers meaning, importance, types, process & example of Marketing Mix from marketing perspective.
What is Marketing Mix?
Marketing Mix is a strategy which a company uses to formulate a product/service offering for its customers. Marketing mix strategy is created using the 4Ps of marketing - Product, Place, Price, Promotion and 7Ps in case of service- Physical Evidence, People, Process. The term is attributed to Neil Bordon. The term is named 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 of marketing mix strategy is to make the right product at correct price at the right place with right promotion. This strategy has been one of the popular marketing topics in business. Let us talk more about the various elements in the marketing mix.
Types of Marketing Mix
There are two types of marketing mix:
1. Product Mix (4Ps)
2. Service Mix (7Ps)
Product mix is the marketing mix strategy that is applicable to the products and has the main 4 Ps elements. The product mix is common with the service mix in terms of the first 4 Ps.
The service mix has 3 more elements making it 7Ps.
The physical evidence, people and process are very relevant to the service brands like quick service restaurants, telecom service providers where the journey is different from the product companies. let us understand both types one by one.
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Product Mix (4Ps)
When a company is offering products or goods, it comes under the purview of the product marketing mix. It talks about the product strategies, pricing strategies, place where the products are distributed and promotional strategies.
Elements of a product mix can be explained in detail as below:
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 the 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 are of no use and the offering fails.
4) Promotion
Also referred to as Communication about the product. This is the 4th element in marketing mix which means the communication done about the product to the customer. Advertising on TV, print and digital media would come under promotion.
Thus, the 4Ps are valid for every company, whether it is a product or a service company
The above image shows the 4Ps of the marketing mix
Service Mix (7Ps)
In case of a service brand like a restaurant, telecom service, hospitality etc., there are additional points apart from the 4Ps. The additional Ps i.e. physical evidence, people and processes are collectively known as the service marketing mix. These can be described as below:
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.
All these help in understand the marketing mix for a service based business
There is an alternative theory of 4 C's (Commodity, Cost, Communication, Channel) also which also is similar to 4 Ps.
Importance of Marketing Mix
Marketing Mix is one of the most important marketing strategy used by companies. It is one of the first steps in the strategy. It lets companies decide on their formula for the four parameters-Product, Price, Place, Promotion. A marketer can use these four to adjust the product offering. Marketing mix along with other marketing techniques like segmentation, targeting, positioning, planning, research can lead to a successful marketing proposition.
Marketing Mix Example
ABC ltd wants to launch a new Burger in menu. So as first element of marketing mix is 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.
Hence, this concludes the definition of Marketing Mix along with its overview.
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