Modern Marketing Mix Explained
- 6 min read
- Bojan Zidarević
Marketing mix is a combination of tools that a company uses to reach its marketing objectives. Every company has different marketing objectives. For example, one company wants to raise brand awareness, while the other might be focused on getting new clients through online advertising.
Since their marketing objectives differ, so will their marketing strategies and tools to achieve those objectives. Marketing mix offers a framework to analyze what elements of marketing strategy should be used to meet the defined goals.
Obviously, marketing budgets are limited, so a company can’t focused on every marketing channels possible. It has to choose some of them.
It’s important to understand this basic marketing concept if you want to be successful at marketing. It may seem simple at the first glance, but a lot of companies and marketers think it’s not important.
It is. If you have a clear understanding of the marketing mix, you can develope your marketing strategy more effectively.The marketing mix is predominately associated with the 4P’s of marketing, the 7P’s of service marketing, and the 4 Cs theories developed in the 1990s.
The 4 P’s of marketing mix
E. J. McCarthy, in 1960, classified the marketing activities into a tool designed to describe the 4 types of choices an organization has to make in order to successfully be engaged in marketing. Business schools today teach this concept in their classes.
The 4 P model consists of:
Here’s a graphical representation:
Let’s take a look at each of the elements.
A product refers to an item that satisfies the consumer’s needs or wants. Products may be tangible (goods) or intangible (services, ideas or experiences).You must ensure to have the right type of product that is in demand for your market.
So during the product development phase, the marketer must do an extensive research on the life cycle of the product that they are creating.Every product has a life cycle that’s made up of different phases: growth phase, maturity phase and sales decline phase.
It’s crucial to reinvent the product once it reaches the sales decline phase. One common example of this would be smartphones, where a new model is usually released every year.
The price of the product is basically the amount that a customer pays for to enjoy it. Price is a very important component of the marketing mix definition.It’s the only marketing mix variable that has direct implications on revenue.
Setting the product’s price has a huge effect on the entire marketing strategy. Low-end and high-end products are not advertised in the same way, and price can be used as an unique selling point.
Place mainly refers to finding the right strategy of distribution and placement for the product or service offered.You have to position and distribute the product in a place that is accessible to potential buyers.
Promotion refers to marketing communications.
It consists of various elements such as:
- Sales organization
- Sales promotion
- Public relations
Advertising refers to paid promotions of company’s products. Examples include TV commercials, radio commercials and so on. In the least decade, digital marketing is the most used form of promotion.
The modern marketing mix: the 7 P’s
Since the original 4 P’s were developed in the 1960s, the marketing profession has developed significantly. It became far more professional, and it embraced modern technologies. Therefore, an updated marketing mix theory emerged with time.The 7Ps model is a marketing model that modifies the 4Ps model. The 7Ps is generally used in the service industries.
This model adds three additional P’s to the mix, and they are:
- Physical evidence
In marketing mix, people refer to two categories:
- The employees of the company. They are important since they’re the ones delivering the services. It’s important to hire and train the right people for the job, so they deliver the best possible service to the customers.
- The customers. In order to develop a truly successful marketing strategy, companies have to make sure they understand their target markets. They have to get to know their consumers and their needs, desires and what drives them to act the way they do.
The processes inside your company affect how well your services will be executed.You have to make sure you have a well-optimized process, so you cam minimize your costs. It can be anything from payment system, sales funnel or distribution system.
This refers to the environment in which the service occurs. It includes the space where the service has occurred and the space where customers and service personnel interact.This includes things like interior design, room layout, ambient conditions and so on.
Marketing mix is a fundamental concept in marketing. It plays a vital role in the process of designing marketing strategy. It’s crucial that companies develop marketing plans that take into account all the elements mentioned int this article to make sure they set themselves up for success.
If you need help with creating your marketing plan, contact us today for a free consultation.
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