What Is a Marketing Mix?
A marketing mix includes multiple areas of focus as part of a comprehensive marketing plan. The term often refers to a common classification that began as the four Ps: product, price, placement, and promotion.
Effective marketing touches on a broad range of areas as opposed to fixating on one message. Doing so helps reach a wider audience, and by keeping the four Ps in mind, marketing professionals are better able to maintain focus on the things that really matter. Focusing on a marketing mix helps organizations make strategic decisions when launching new products or revising existing products.
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Key Takeaways
- A marketing mix refers to a framework that uses the four Ps of product, price, placement, and promotion.
- This concept traces back to 1960, when marketing professor E. Jerome McCarthy first published it in a book entitled Basic Marketing: A Managerial Approach.
- The different elements of a marketing mix work in conjunction with one another with the ultimate purpose of generating higher sales.
- In addition to the 4 Ps, three approaches can also be integrated that include people, process, and physical evidence to reinforce a consumer-centric type of marketing strategy.
- This type of strategy extends beyond a product-focused marketing approach.
What Are the 4 Ps of a Marketing Mix?
The four Ps classification for developing an effective marketing strategy was first introduced in 1960 by marketing professor and author E. Jerome McCarthy. It was published in the book entitled Basic Marketing: A Managerial Approach. Depending on the industry and the target of the marketing plan, marketing managers may take various approaches to each of the four Ps. Each element can be examined independently, but in practice, they often are dependent on one another.
Product
This represents an item or service designed to satisfy customer needs and wants. To effectively market a product or service, it's important to identify what differentiates it from competing products or services. It's also important to determine if other products or services can be marketed in conjunction with it.
Price
The sale price of the product reflects what consumers are willing to pay for it. Marketing professionals need to consider costs related to research and development, manufacturing, marketing, and distribution—otherwise known ascost-based pricing.Pricing based primarily on consumers' perceived quality or value is known as value-based pricing.
Value-based pricing plays a key role in products that are considered to be status symbols.
Placement
When determining areas of distribution, it's important to consider the type of product sold. Basic consumer products, such as paper goods, often are readily available in many stores. Premium consumer products, however, typically are available only in select stores.
Promotion
Joint marketing campaigns are called a promotional mix. Activities might include advertising, sales promotion, personal selling, and public relations.One key consideration is the budget assigned to the marketing mix. Marketing professionals carefully construct a message that often incorporates details from the other three Ps when trying to reach their target audience. Determination of the best mediums to communicate the message and decisions about the frequency of the communication also are important.
What Are Other Marketing Tools?
Not all marketing is product-focused. Customer service businessesarefundamentally different than those based primarily on physical products, so they often will take a consumer-centric approach that incorporates additional elements to address their unique needs.
Three additional Ps tied to this type of marketing mix might include people, process, and physical evidence. "People" refers to employees who represent a company as theyinteract with clients or customers. "Process" represents the method or flow of providing service to clients and often incorporates monitoring service performance for customer satisfaction. "Physical evidence" relates to an area or space where company representatives and customersinteract. Marketers take into consideration elements such as furniture, signage, and layout.
Additionally, marketers often study consumers in order to refine or update strategies related to services or products. This requires a strategy for communicating with consumers in order to obtain feedback and define the type of feedback being sought.
Traditionally, marketing commences with identifying consumers' needs and ceases with the delivery and promotion of a final product or service.Consumer-centric marketing is more cyclical.Its goals include reassessing customers' needs, communicating frequently, and developing strategies to build customer loyalty.
What Are the Four Elements of a Marketing Mix?
The four primary elements of a marketing mix are product, price, placement, and promotion. This framework aims to create a comprehensive plan to distinguish a product or service from competitors that creates value for the customer. Often, these elements are dependent on each other.
Product refers to a good or service that meets a customer's needs. Here, companies focus on features that differentiate it from its competitors. An organization may also consider complementary products that fit within its suite of product or service offerings.
Price represents the price point or price range for the product or service. Ultimately, the goal is to maximize profit margins and return on investment while considering the price that customers are willing to pay.
Placement refers to distribution channels. Specifically, where is this product being promoted, and how can you get it in front of your target audience?
Promotion focuses on creating brand awareness around your product or service. Importantly, it looks at how utilizing certain channels can drive sales.
What Are the 7 Ps in a Marketing Mix?
Sometimes, the marketing mix can extend beyond the classic four Ps of product, price, placement, and promotion established by professor E. Jerome McCarthy in 1960. These additional categories include people, physical evidence, and process.
In this way, people represent the employees who interact with customers. A company may consider company culture as it relates to its brand strategy. This may include customer relationship management (CRM), which aims to increase brand loyalty among customers.
Physical evidence might include the packaging or the layout of a physical store, which can reinforce a brand and create more value to the customer.
Finally, the process identifies areas, often from a logistical standpoint, that enable the customer to have the most seamless experience possible with a product or service. This may include everything from delivery logistics and shipping to managing third-party retailers.
What Is the Purpose of a Marketing Mix?
At its core, a marketing mix is focused on promoting a product or service to generate revenue for a company. On the whole, it integrates key marketing strategies that create brand awareness, build customer loyalty, and drive product sales.
The Bottom Line
The development of a comprehensive, effective marketing plan takes into consideration a marketing mix that includes several areas of focus. Typically, the marketing mix refers to the four Ps: product or service, its price, placement, and promotion. This concept was developed in 1960, when marketing professor E. Jerome McCarthy first published it in a book entitled Basic Marketing: A Managerial Approach.
However, because not all marketing is focused on products, customer-service businesses rely on other marketing tools that might include three additional Ps: the people who interact with customers, the process that creates a seamless customer experience, and physical evidence, or the area where customers and company representatives interact.
All of these tools are used to promote a product or service and build brand awareness and customer loyalty in order to generate revenue for a business.
