The Marketing Mix and Its Importance
The marketing mix is a tool for considering the different elements that go into promoting a brand and its products. It is a phrase used to describe the different kinds of choices organizations must make in the whole process of bringing a product or service to market. All the elements of the marketing mix interact with one another and should convey the same message about a product or service.
Below we consider why the marketing mix is important, the “4Ps” for product businesses and the “7Ps” for service businesses. Additionally, we highlight four key areas to consider when developing your marketing mix.
The marketing mix is important for the following reasons:
1. The marketing mix assists businesses with determining the suitability of a product or service for a particular target consumer base.
2. It facilitates the creation of the right marketing strategy and its implementation through effective tactics.
3. Marketing mix decisions have an impact on your segmentation, targeting and positioning decisions.
For product-based businesses, the marketing mix is known as “the 4Ps”, namely product, price, place and promotion. Below is a descriptor of each element.
Product – Product is what you should offer your customers that they value
Price – Price is a critical element of the marketing mix because it interacts with other parts of the marketing mix. For example, price can be a strong signal of value and it can be a strong part of the branding strategy.
Place – Sometimes called ‘distribution’. It includes issues of location of outlets, transportation, channel strategy.
Promotion – This includes advertising, sales promotions, personal selling, PR, digital marketing, etc.
For service-based businesses, the marketing mix is known as “the 7Ps”. This includes the 4Ps above, as well as people, processes, and physical evidence.
People – This includes everyone who is involved in the service, whether directly or indirectly.
Processes – This refers to the process used to deliver the service and create value.
Physical evidence – This refers to everything your customers see when interacting with your business. This includes: the physical design and layout of the premises or the layout of the company website.
Below are four key areas to consider when developing your marketing mix:
1. The marketing mix needs to match the needs of the consumer. The focus is on how the product or service matches the needs of consumers.
2. Do you have the expertise to create and deliver that marketing mix? If not, you may wish to adjust the marketing mix so that it aligns with what you can realistically deliver.
3. The marketing mix should create competitive advantage. If you are competing on cost, does your marketing mix point to a low-cost offering? If you are competing by delivering superior value, does your marketing mix point to this position?
4. All the elements in the marketing mix should be sending the same message. For example, if you charge a premium price for your product, the quality of the product should match this premium price. That is, you cannot charge a premium price, but deliver an inferior product.
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