May 23, 2011
One of the major factors of modern marketing is the development of an effective marketing mix. The marketing mix is made of the four P’s, Product, Price, Place, and Promotion. It is these four factors that are the groundwork for any business and often times is the major factor on whether a new business will succeed or fail. To really understand the marketing mix it is best to break down the 4 parts and see what makes up each element.
The first part of the marketing mix is the product. This is the good or service that the company offers to potential customers. It is not only the actual product but can also include the other benefits of the product such as warranties or other included features. For example Chevrolet sells the Tahoe in many different models which include various options but it also includes a comprehensive warranty that is also a part of the product. Many companies today also include a service plan to further enhance the product that they offer to their customers.
Price is the one element of the marketing mix that the business can have the most influence over. This can be changed very quickly and also can change as often as needed. The overall price of an item is affected by many factors which can include cost of the raw materials, cost to produce the product, overhead of the business, and also the cost associated with marketing and advertising of the product. With all of these factors and with the changes in the economy, it is very easy to see why price can change so often. Price also can be a major factor in customer’s purchasing so there is a very fine balance of profitability and top line sales that must always be kept in mind when looking at the price portion of the marketing mix. Also included in the price would be various discounts, specials, and possible payment or financing options. For example most major retailers now offer a store credit card to entice customers to use their store and will give special discounts when you use their company credit card or financing.
The third and probably most stable of the marketing mix is place. Most of the parts of the place are set up early on and will not change that often. Place can include not only the place where the product is sold but also where it is stored, produced, and also the means of transportation that is used to deliver the product. This can often include partnerships with third party businesses that perform many of these functions for the company selling the product. For example automobile manufacturer’s partner with independent dealers to sell the products, suppliers for many of the parts they use, and often times a third party logistics company to deliver the product nationwide to the dealerships they use. They support all of the other industries very heavily as they are key to the success of the end product they are trying to sell to consumers.
The last part of the marketing mix is promotion. This is the area that most people relate with marketing as it includes the advertising of the product, public relations dealing with the product, as well as various sales promotions that are used to get the word out about the product the company intends to sell. This is often the most visible of all the marketing mix and its sole purpose is to inform the public about the product and entice them to purchase the product that the company is offering.
Now that the four parts of the marketing mix have been identified it is easiest to relate this to a real world company so specific details can be given that show how the marketing mix all is related and how each one of the four P’s play a role in a company selling the products they are offering to their consumers.
One company that uses the 4 areas of the marketing mix as part of their marketing strategy is Steve’s Blinds and Wallpaper. Steve’s Blinds and Wallpaper is a retailer of custom made...