What are the four components of the marketing mix ?
The four main components of a marketing mix strategy are product, pricing, place, and promotion, often referred to as the marketing mix or the four P’s of marketing. The following four elements of the marketing mix can help a company increase the likelihood that a product will be seen and purchased by customers :-
- Goods. A consumer’s need or desire must be satisfied by the good or service being sold.
- Price. A product should be offered for sale at a price that is appropriate for consumer expectations—not too high or too low.
- Marketing. To understand how the product satisfies the requirements or wishes of the public, the public must be informed about the product and its attributes.
- Place. For maximum sales, it’s crucial to consider the product’s selling point.
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Examples and considerations for understanding the four Ps
The four Ps are interconnected and cooperate. The four Ps remain the cornerstone of every effective marketing plan, despite the fact that several marketing ideas have been produced over time. The breakdown of each P is shown below along with examples.
Product
Products are goods and services that consumers need in order to solve their problems and meet their needs. An item of clothes or a vehicle are examples of tangible products, while a cruise or house cleaning service are examples of intangible products. Either a product answers a need in the market or provides a special experience that increases demand.
Example.
Most people were unaware of the need for a phone that would put everything at their fingertips before the iPhone was introduced. People were pushed to simplify their lives by carrying a smartphone that could also act as a GPS, calendar, search engine, torch, weather app and calculator thanks to the way Apple promoted its device.
inquiries to make.
Understanding a product well is essential before promoting it. Finding out specifics about the target audience and its preferences is part of this.
Before creating a product, consider the following queries :-
- What exactly is the product ?
- Is it a particular good or service ?
- What is the goal of the product ?
- Does the item meet a need or offer a special experience ?
- Who are the product’s target consumers ?
- How does the product stand out from the competition ?
Price
The cost of the goods that the consumer pays is known as the price. Setting a pricing that reflects the current market trends, is affordable for consumers, and is lucrative for the company is crucial when selling a product. The relationship between supply and demand, as well as the product’s sales cycle, can affect price. While some companies may raise their prices in order to compete with the market, others may decrease them—particularly if they are advertising a luxury brand.
Example
A product’s price points are crucial to its success. For instance, just a few customers will buy a product if it is pricey. On the other hand, a product priced too low may give consumers the idea that it is of worse quality.
inquiries to make
Studying the target market and what they are willing to pay for a product is crucial to determining its most lucrative price.
Before creating a product pricing strategy, consider the following inquiries :-
- How much do the suppliers of similar products charge ?
- What are the target consumers’ affordability and price points ?
- What is the product’s lowest possible selling price ?
- What is the maximum price at which the product could be sold ?
- What price range does the target market prefer ?
- Which pricing best suits the target market ?
Place
Customers purchase the good or service in these locations and through these channels. It also includes the location of the product’s manufacturing and storage. How items are sold has changed as a result of digital transformation, whether through internet retailers, small local businesses, or international manufacturers. This marketing strategy takes into account where and how the product is advertised, for as through publications, online commercials, radio, infomercials, or product placements in movies.
Example
The location is where the item is sold and shipped from. For instance, it would be a good idea to avoid using TikTok while marketing a product to elders. Similar to this, marketing campaigns for goods aimed towards younger generations would be more successful online and on social networking sites.
Issues to raise
Not every location works well for product promotion and distribution. As a result, it’s critical to provide products and cater to customer wants in an area that is simple to get to.
Before choosing a location to promote a product, think about the following issues :-
- Which locations or venues do customers frequently use to purchase comparable goods and services ?
- Where is the rival company marketing its goods ?
- What kind of shopping preferences does the target market have ?
- Will using Salesforce, a sales crew, or self-service for product placement and distribution be necessary ?
- How can the appropriate channels of dissemination be accessed ?
Promotion
Promotion means conveying the proper message to the target audience at the appropriate moment. It spreads the word and is a successful approach to engage customers during a sales promotion. A promotional strategy seeks to demonstrate to consumers the benefits of choosing one product over another and the reasons they would require that product. Product promotions, which form the basis of marketing communications, disseminate targeted and valuable advertising through well-liked channels, including social networking, Instagram campaigns, print advertising, television commercials, email marketing, social media marketing, and more.
Example
Promotional marketing can benefit from careful timing. Consider the football season, when pizza delivery offers are promoted during games.
Issues to raise
Setting the lowest price or having an excellent product offering are insufficient for a product to be successful. The major component of the marketing mix that can spread the product to a large audience is promotion. As a result, the promotional messaging should constantly be tailored to the distribution channels as well as the target demographic.
While considering a promotional strategy, keep the following factors in mind :-
- When should you reach out to your target market ?
- Which media will the target audience use to access information ?
- Which advertising strategies will be most successful with the intended audience ?
Which media are the most affordable and effective for promoting products ? - Which demographic should be involved in the campaign ?
- How and where are the rivals’ advertising and marketing budgets allocated ?
The 4 Ps’s History
The marketing mix has its roots in E. Jerome McCarthy’s best-selling book Basic Marketing – A Management Perspective, which first mentioned it in 1960. In his 1964 article, “The Idea of the Marketing Mix,” Harvard professor Neil Borden defined the phrase. Borden claimed that his associate James Culliton, who compared great marketers to chefs, was the source of inspiration for his notion. Culliton compared successful marketers to great chefs, saying that both follow a recipe but are always open to experimenting with new ingredients and making last-minute adjustments in response to market demands and customer preferences. Consumer drive for purchasing is one of the factors that can change a marketing mix, claims Borden.
Due to their solid underlying ideas, the four Ps have endured the test of time and, despite the rapid digitalization, still have relevance in the marketing industry.
alternative models of the marketing mix
The four Ps make up a conventional marketing mix. The four Ps have, however, undergone a number of more recent versions over time.
These are a few well-liked marketing mix substitutions.
The seven P’s of Bitner and Booms
In 1981, professors Mary Jo Bitner and Bernard Booms introduced the seven P’s of marketing. The extended marketing mix is another name for the seven P’s. They consist of the traditional marketing four Ps as well as people, processes, and tangible evidence.
The four C’s of Lauterborn
This strategy, put out by educator and consultant Robert F. Lauterborn in 1990, emphasises the client by highlighting various components of the marketing mix from the perspective of the buyer rather than the seller. It includes the following components :-
- Customer needs and wants that the product in the marketing mix addresses.
- Cost, which in the marketing mix correlates to pricing.
- The ease of purchase, which is related to the marketing mix’s position.
- Communication, which in the marketing mix equates to promotion.
Six C’s, or customer mix
The six C’s are a fundamental revamp of conventional methods designed to meet the demands of contemporary, client-centered digital marketing techniques. In addition to the four C’s, this marketing mix also includes content and community.
A Marketing Mix: What Is It ?
As a component of an all-encompassing marketing strategy, a marketing mix encompasses many areas of emphasis. The phrase frequently alludes to the classification known as the four Ps, which originally stood for product, pricing, placement, and promotion.
Instead than focusing solely on one message, effective marketing touches on a variety of topics. This makes it easier to connect with more people, and by remembering the four Ps, marketing professionals are better able to keep their attention on the things that really important. While releasing new products or updating current ones, firms can make more strategic decisions by concentrating on the marketing mix.