Wednesday, March 20, 2019

Marketing mix

Term used to emphasise the importance of mixing or blending various factors such as product, price, placement and promotion to achieve marketing objectives.

Marketing mix is generally accepted as the use and specification of the four Ps which describe the strategic position of a product in the marketplace. The four Ps definition of the marketing mix is explained in most marketing textbooks and classes.

The four Ps of the marketing mix are typically referred to as:

Marketing mix: Product - An object or a service that is mass produced or manufactured on a large scale with a specific volume of units. 

Marketing mix: Price – The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product. 

Marketing mix: Place – Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet. 

Marketing mix: Promotion – Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements - advertising, public relations, word of mouth and point of sale. A certain amount of crossover occurs when promotion uses the four principle elements together. Advertising covers any communication that is paid for, from television and cinema commercials, radio and Internet adverts through print media and billboards. One of the most notable means of promotion today is the Promotional Product, as in useful items distributed to targeted audiences with no obligation attached. This category has grown each year for the past decade while most other forms have suffered. It is the only form of advertising that targets all five senses and has the recipient thanking the giver. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations (see Product above). 

Optimizing the marketing mix is the primary responsibility of marketing. By offering the product with the right combination of the four Ps in the marketing mix, marketers can improve their results and marketing effectiveness. Making small changes in the marketing mix is typically considered to be a tactical change. Making large changes in any of the four Ps can be considered strategic. 

To learn more about the marketing mix, and find case studies featuring the marketing mix, please visit the Australian Financial Review Case Studies with Business News website at www.afrbiz.com.au.

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