Definition: Marketing Mix is a group of marketing variables that the firm combines and controls, to produce the desired response in the target market. It is an important marketing tool that comprises of all the elements which influence the demand for the products offered by the firm.
Components of Marketing Mix
The different marketing activities are categorised by McCarthy into marketing mix tools, of four types, which are commonly known as ‘four Ps of marketing’:
- Product: Product refers to the goods and services, that are offered to the customers for sale and are capable of satisfying their wants. A firm makes strategies to introduce products which are high in demand and drop the ones which cause loss to the company. Strategic decisions regarding the product variety, quality, design, features, brand name, packaging, size, returns, after-sales services, etc., are to be made.
Products offered by the firm should be such that which creates an impact in the minds of the customers that the products offered by them are different than those offered by the competitors. So, differentiation is the key, that helps in creating brand value.
- Price: Price is described as the amount which a customer pays to get the desired product or service. The pricing of the product should be done keeping in mind the list price, competitor’s price, terms of sale, customer location, discounts and so forth. While deciding the prices, the value and utility of the product to its customers are to be considered.
- Place: Place refers to the easy availability of the product in the target market. It implies that a suitable marketing channel is to be chosen, to reach the customers, because the better the chain of distribution, the higher would be the coverage.
- Promotion: Promotion implies marketing communication, as in publicizing the product to convey product features. It aims at grabbing the attention of customers and instigating them to buy it. Promotion mix implies the promotional tools used by the marketers to reach the target audience. It could be Advertising, Direct marketing, Sales Promotion, Personal Selling, etc.
In addition to the 4P’s, when there is consumer-oriented or service marketing, 3P’s are added to it, which are:
- People: It comprises of all the human beings that play an active role in offering the product or service to the customer such as the employees. It also views customers as people not as buyers, to understand their needs and fulfil them.
- Process: The complete procedure and the flow of activities through which the product reaches the final consumer.
- Physical Environment: As the name suggests, it refers to the marketing environment wherein the interaction between customer and firm takes place.
A powerful marketing mix brings together all the tools in such a way that creates demand for the product by offering value to the customers and thus pursues its marketing objectives.