The marketing mix consists of product, price, promotion, and place. These are the focus areas of businesses that develop marketing strategies. They should think about the product marketing, pricing strategies, promotional techniques used, and distribution/delivery services. All marketing handbooks teach the 4Ps and their significance for marketers. This article will explain in simple terms why the 4Ps are important for your business and a successful marketing strategy.
Elements of Marketing Mix
The traditional concept of marketing mix includes four elements. These elements have their strategies, techniques, and applications. Marketers need to consider all four aspects but they focus on one of them at a time. The four elements of the marketing mix are:
- Product
- Price
- Promotion
- Place
Product
Product is the backbone of a business’s revenue. The first thing that customers pay attention to is a product – how it looks, how it’s used, and what is the quality of the product. Marketers spend the most amount of time on product marketing and value proposition outlining the benefits of using the product. Various elements of product marketing could range from unique selling point (USP) promotion to packaging and branding.
- What are the unique features of the product?
- Is there anything special about the product that competing products can’t offer?
- Who needs the product?
- How to use the product?
Price
Pricing is one of the most important aspects of the marketing mix. Marketers must make sure that the price correctly reflects the value that the product or service brings to the customers. However, at the same time, the price should be competitive – emotional intelligence experts frequently highlight how underpriced items are believed to be low-quality by customers.
- What is the price of similar products and services on the market?
- Does the price correspond to the value of the product/service?
- Are your customers willing to pay the price?
- Is the price bringing the profit to your business?
Promotion
Promotion is one of the most important steps in marketing mix evaluation and action plan. It communicates the product benefits and needs to the right audience. We encounter it often in the form of advertising and public relations. In general, all tools necessary to generate interest in a product or service are part of the promotion in the marketing mix.
- How to reach your target audience?
- What promotional tools are your competitors using?
- What is the return on investment for your promotional campaigns?
- What are the goals that you expect from your promotional strategy?
Place (distribution)
Place does not only mean the physical location where the product will be found. It also includes many different factors such as how customers can get the product, if there is a delivery service, distribution, or anything else. The place and distribution may also mean the media coverage – which platforms will have your product featured.
- Where will you place your product?
- What are the places that will be most noticeable by your customers?
- What is the most appropriate place to displace your product?
- Can you find the most cost-efficient place for distribution, delivery, or product placement?
Importance of Marketing Mix
A marketing mix helps businesses plan and execute their strategies. It is about understanding your audience, competition, your product benefits, and promotional opportunities. If you know all four aspects of your product marketing mix then there are fewer chances of failing to advertise it. The marketing mix outlining comes right after the marketing research, so it is one of the first steps for businesses to get started with their marketing strategies.
Benefits of Marketing Mix
- A very strong framework for businesses to plan their marketing strategy
- Businesses focus on the right elements (prevent wasting time and resources)
- Identifies the most effective marketing tools for promotion
- Makes it clear what is the current position of the company/product on the market
- Sets a stage for creating a unique selling proposition and value proposition
- Improves future marketing campaigns
The Extended Marketing Mix
The traditional marketing mix is very helpful. However, marketers and researchers came up with an additional concept – the extended marketing mix. Of course, there are more than four elements in marketing and there could be hundreds of notions that marketers need to consider when promoting their brand, products, and services. However, classifying these techniques, tools, and methodologies makes it easier to teach marketing to beginners and novices.
So, the extended marketing mix includes 7 elements, or 7Ps of marketing as we know it. These 7 Ps are:
- Product
- Price
- Place
- Promotion
- People
- Process
- Physical evidence
The 7 Ps of Marketing Mix
We already talked about the first four elements of the marketing mix – product, price, place, and promotion. So, there is no need to describe them in a new context. The concepts behind these four elements are the same in both 4P and 7P marketing mix strategies. Let’s review the additional three components that are new to our article.
People
People were part of many elements of the 4P. Marketers needed to analyze the audience for product analysis (demand, needs, and wants), for pricing (purchasing power, value perception), for promotion (emotional marketing, selling techniques, buyer personas), and place (popular locations). However, the 7P marketing mix extracts people as a separate entity, which is very appropriate and often helpful to marketers.
People, or target audience, build your marketing strategies – they are the ones that marketers focus on. You need to think about your audience in every aspect of your business. From completing the audience research (target audience analysis) to creating buyer personas and outlining buyer journeys, the marketing mix recommends putting extra effort into understanding the people element of the strategy.
Process
This element became part of the marketing mix thanks to digital marketing research specialists. They noticed that buyers’ journey in digital platforms is very different from the physical environment. The process of buying and selling products often occurs on websites. The concept of process in the marketing mix often refers to UI/UX (user interface and user experience).
Today, the world has become very dynamic. People act faster, think faster, and buy faster, too. They want simplified processes and improved user experience. That is why companies invest heavily in user experience optimization and designing a website that lets customers buy products in a few minutes.
Physical Evidence
Physical evidence is important for user acquisition marketing as it helps new and prospective clients trust your brand, product, or service. It provides evidence for the quality of your product and makes sure that your clients have no doubts regarding it. For example, agencies often use testimonials and success cases within their portfolios, which is physical evidence from their marketing mix.
Physical evidence does more than just persuade your customers – it creates a strong brand image and takes care of the brand’s reputation in the long term.
Four C’s of marketing mix
Customers are prioritized by businesses today. The 4Cs of marketing (commodity, cost, channel, and communication) are crucial and should be considered in marketing strategies. Proposed by Koichi Shimizu in 1973.
- Commodity
A commodity is a basic good that can be bought and sold on the market. It is a raw material or primary agricultural product that has not been processed.
- Cost
The cost is the amount of money that a company spends on producing a good or service. It includes the cost of raw materials, labor, and other expenses.
- Channel
A channel is a way to reach customers with your product or service. It can be a direct sales force, an online store, or a retail location.
- Communication
Communication is the act of transmitting information from one person to another. It can be verbal, written, or nonverbal.
How to Develop a Marketing Mix
Learn the marketing mix basics, then develop your own with endless possibilities. Don’t limit yourself to the traditional four Ps – get creative and experiment for success.
When creating your marketing mix, be sure to keep your target audience in mind. Your mix should be designed to appeal to your specific target market and help you achieve your marketing goals.
After creating your marketing mix, regularly review and adjust it as your business grows. By considering your target audience and focusing on its basic components, you can develop an effective mix to achieve your marketing goals.
Examples of Marketing Mix
Coca-Cola
Product: Coca Cola
- One of the most popular and well-known soft drinks in the world
- Available in over 200 countries
- Price
- Varies depending on location and availability
- Can be found for as little as $0.50 per can
- Promotion:
- Coca Cola spends millions of dollars annually on advertising and marketing
- Some of the most iconic ads and campaigns in history
- Place:
- Coca Cola is widely available in supermarkets, convenience stores, restaurants, etc.
- Can be found almost anywhere around the world.
The Coca Cola Company offers a great product at a reasonable price, promotes their product through various channels, and has made their product available in over 200 countries. This strategic use of the marketing mix has helped make Coca Cola one of the most recognizable brands in the world.
McDonald’s
Product: McDonald’s
- A leading fast-food chain with locations all over the world
- Offers a wide variety of menu items
- Price:
- Varies depending on location and availability
- Value meals and promotions help make McDonald’s affordable for everyone
- Promotion
- Extensive advertising and marketing campaign
- Happy Meal toys, TV commercials, and other promotional materials
- Place:
- McDonald’s restaurants can be found in almost every city across the globe
- A convenient option for busy families and individuals on the go
McDonald’s offers a variety of menu items at affordable prices, promotes their product through various channels, and has made their product available in almost every country. This strategic use of the marketing mix has helped make McDonald’s one of the most recognizable brands in the world.
Nike
Product: Nike
- A leading athletic apparel and footwear company
- Offers a wide variety of products for men, women, and children
- Price:
- Varies depending on product and availability
- Nike offers a wide range of prices to appeal to all consumers
- Promotion:
- Nike spends billions of dollars each year on advertising and marketing
- Some of the most iconic ads and campaigns in history
- Place:
- Nike products are available in stores all over the world
- Can also be purchased online through Nike’s website or through authorized retailers
Nike’s successful product is attributed to its marketing mix, offering diverse products at different prices, promoting them through various channels, and making them globally accessible. This approach has made Nike a highly recognized brand worldwide.
Apple
Product: Apple
- A leading technology company that offers a range of products including computers, smartphones, and tablets
- Apple products are known for their sleek design and user-friendly interface
- Price:
- Varies depending on product and availability
- Apple products are typically more expensive than similar products offered by other companies
- Promotion:
- Apple spends billions of dollars each year on advertising and marketing
- Some of the most iconic ads and campaigns in history
- Place:
- Apple products are available in stores all over the world
- Can also be purchased online through Apple’s website or through authorized retailers
Apple’s use of the marketing mix helped them become a globally recognized brand. They offer innovative products at different prices, promote through various channels, and sell their products worldwide.
Amazon
Product: Amazon
- A leading online retailer that offers a wide variety of products
- known for its convenient online shopping experience and fast shipping
- Price:
- Varies depending on product and availability
- Amazon offers a wide range of prices to appeal to all consumers
- Promotion:
- Amazon spends billions of dollars each year on advertising and marketing
- Some of the most iconic ads and campaigns in history
- Place:
- Amazon products are available for purchase online through the Amazon website
Amazon uses all 4 aspects of the marketing mix. They offer a variety of products at different prices, promote them through various channels, and sell them online. This has made Amazon a well-known brand.
Benefits and Drawbacks of Marketing Mix
Using a marketing mix benefits businesses by being more strategic, effectively targeting customers, increasing sales and brand awareness. It also helps avoid relying on one method and provides a complete picture of marketing performance.
Using a marketing mix can be time-consuming and resource-intensive, especially for small businesses. It may not be necessary for all businesses, and a simpler approach can be more effective. The marketing mix is just one tool among many in the larger marketing toolbox.
Future of Marketing Mix Strategy
The future of marketing mix strategy is in big data and personalization. With the advent of big data, businesses are able to collect more information about their customers than ever before.
- This allows them to develop highly personalized marketing strategies that target specific segments of their customer base.
- In addition, the use of big data will allow businesses to automate many of their marketing activities. This will help to improve efficiency and effectiveness while also reducing costs.
- Finally, the future of marketing mix strategy will also depend on the increasing importance of digital channels. As more consumers turn to online and mobile devices for information and purchases, businesses will need to adjust their marketing mix strategies accordingly.
Overall, the future of marketing mix strategy is in big data and personalization. By leveraging these two trends, businesses will be able to develop more effective and efficient marketing campaigns that target specific segments of their customer base.