The marketing mix is a business tool used in marketing and by marketing professionals. The marketing mix is often crucial when determining a product or brand's offering, and is often synonymous with the four Ps: price, product, promotion, and place; in service marketing, however, the four Ps have been expanded to the Seven Ps or Eight Ps to address the different nature of services.
The definition that many marketers learn as they start out in the industry is: Putting the right product in the right place, at the right price, at the right time. The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. The 4Ps make up a typical marketing mix.
When marketing their products firms need to create a successful mix of: the right product
sold at the right price
in the right place
using the most suitable promotion.
To create the right marketing mix, businesses have to meet the following conditions: The product has to have the right features - for example, it must look good and work well. The price must be right. Consumer will need to buy in large numbers to produce a healthy profit. The goods must be in the right place at the right time. Making sure that the goods arrive when and where they are wanted is an important operation. The target group needs to be made aware of the existence and availability of the product through promotion. Successful promotion helps a firm to spread costs over a larger output.
1.Product: (refers to the item actually being sold)
A product is seen as an item that satisfies what a consumer demands. It is a tangible good or an intangible service. For example good will for intangible. Tangible products are those that have an independent physical existence. Typical examples of mass-produced, tangible objects are the motor car and the disposable razor. A less obvious but ubiquitous mass-produced service is a computer operating system.
The marketer must also consider the product mix. Marketers can expand the current product mix by increasing a certain product line's depth or by increasing the number of product lines. Marketers should consider the features and benefits you offer, your unique selling points (What makes your product/service different from everyone else's) and what potential spin-off products of services might be. Marketers should consider how to position the product, how to exploit the brand, how to exploit the company's resources and how to configure the product mix so that each product complements the other. The marketer must also consider product development strategies.
2.Price: (refers to the value that is put for a product/ the amount a customer pays for the product) Price is a critical part and is very important of your marketing mix as it determines the company's profit and hence, survival. Choosing the right price for your products or services will help you to maximise profits and also build strong relationships with your customers. By pricing effectively you will also avoid the serious financial consequences that can occur if you price too low (not enough profit) or too high (not enough sales). When setting a price, the marketer must be aware of the customer perceived value for the product. Your overall pricing strategy will depend on your marketing, business and lifestyle objectives. Three basic pricing strategies are: 1. market skimming pricing,
2. market penetration pricing and
3. neutral pricing.
The 'reference value' (where the consumer refers to the prices of competing products) and the 'differential value' (the consumer's view of this product's attributes versus the attributes of other products) must be taken into account.
3.Place: (refers to the point of sale/ refers to providing the product at a place which is convenient for consumers to access) In every industry, catching the eye of the consumer and making it easy for her to buy it is...
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