Table of contents
When launching a new product, the first step should be to analyze various marketing strategies. One of them is the Marketing Mix. It consists of various factors that a brand must take into account in order to ultimately be able to offer the best possible product or service to the customer. Today, I will outline what this method exactly consists of and the different types of it.
What is Marketing Mix?
Marketing Mix, also known as marketing composition, is a range of disparate techniques, methods and processes that a company can use when marketing its product or service or when shaping customer demand for an offering that a brand already has.
The various elements of Marketing Mix together form an integrated system of influence not only on consumers themselves, but also on competitors and other factors of the company’s market environment. In short, it can be said that it is basically the starting point of every marketer when preparing a marketing strategy.
Three basic concepts of Marketing Mix
Today there are several variants of marketing mixes – the classic 4P, the expanded 7P and the 4C. I will now discuss what exactly these acronyms stand for and outline how these concepts can be used in practice.
The classic 4P concept is by far the best known due also to the fact that it is the oldest. The term “Marketing Mix” was first used by Neil Borden in 1953, and Edmund Jerome McCarthy proposed the 4Ps as a classification of the key elements of the Marketing Mix in 1960. However, although Borden is the author of the term, Philip Kotler definitely contributed to its spread and development of the concept.
The classic 4P formula includes the 4 main instruments of Marketing Mix, namely product, price, promotion and distribution (also sometimes translated as place). This composition maintains its relevance all the time, even though the industry itself has evolved strongly over the years. I will now outline exactly what each of the P’s stands for:
Under this term is not only the product itself in its purely physical form, but also the value it carries with it. Therefore, such elements as its packaging, aesthetics, quality, branding, warranty, and how it is perceived by the audience, how it meets their needs and what emotions accompany them while using this commodity are important.
We have already established that a product is more than what is physically sold. It’s also worth remembering that at this stage you must also identify your customers and test your merchandise in the market. At the very beginning, you also need to understand exactly what your product is. During this phase, it would be a good idea to try to answer questions such as: “What makes my product different?”, “What needs does it meet?”, “Who can use it?”
Then you need to determine whether your product is a new offering or an existing one on the market. This will make it easier for you to conduct a competitive analysis. With it, questions such as: “How is my product better than the competition?”, “Does it have better quality?”, “Does it have a lower price?”. You can also use the answers to these questions later at the price and promotion stage.
The final step is to conduct market research to help you locate your target market. If you’re not sure what market will be most suitable, you can conduct focus studies and offer your product to a certain audience to test it.
The last step is to conduct market research to help you locate your target market.
What price is, each of you probably knows exactly, but as a reminder, it is the expense that a customer incurs in order to satisfy a need. It is a component of the costs you incur to manufacture the product, distribute it and promote it.
Setting the right price is critical to the success of your business. For too low a price for a product can make it perceived as inferior in quality compared to the competition. On the other hand, too high can repel consumers from buying.
To set the right price, you may need to do some research – determining what your competitors are selling and for how much, and surveying potential customers. This can help you determine a price range for your goods.
These are any activities that are used to promote a product to attract a target group Its purpose is not only to inform the audience about the new product, but also to stimulate their needs and increase demand.
Forms of promotion are indeed many. Which one you choose should be individually selected depending on what kind of goods you sell. You can choose, for example, discount codes, TV, radio or internet advertising, public relations activities, etc.
It is the way you place your product in the market, or in short, the choice of appropriate distribution channels by which you will reach potential customers. In addition, the definition of distribution also includes the ease of access to the goods, and even their arrangement on the shelves in the store.
When defining distribution channels, it is very important to understand at the outset where you will find your consumers – while keeping in mind that you can reach them whether you have a physical store or not. The place can be your website, catalog or magazine, in-store sales, or you can rely on salespeople.
Modern 4P concept
Although the classic 4P concept is still often used by marketers, a more modern version of it has also emerged, which is also worth mentioning. It also consists of 4 elements:
- People – it refers not to customers, but to the company’s employees and increasing their marketing awareness. The product should be created by everyone (directly or indirectly) and it is from the crew that the success of the company depends.
- Performance – they indicate the development of the company. Both financial and non-financial measures are taken into account here.
- Platform – activities that focus on the consumer and go beyond the traditional 4Ps.
- Process – their task is to steer activities that in the long run help to establish good relations with the environment.
This composition is a development of the classic 4P. Three additional elements have been added to it: People, Process and Physical evidence. This is because the creators of the 7P recognized that a very important aspect had been left out of the traditional concept – customer service and human resources (employees).
This element refers to all parties that are involved in the buying cycle. It consists of both employees who represent a company and customers. The interaction between these groups is also very important here. Therefore, it is essential that you constantly improve your customer service skills and ensure that the communication around your brand is positive.
This has already been highlighted with the modern 4P concept. The only thing I would add here is that the process phase lasts from the moment the customer enters the store (or, for example, enters the website), and ends with the last interaction. With that said, the last interaction does not have to be the purchase of a product. It can also be a possible return or future purchase.
This consists of all factors that affect a company’s image and consumer perception. It can be an aesthetically pleasing logo, an elegantly decorated store or office, or a functional website.
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Of interest, it is also worth mentioning that some people distinguish a 5P composition in addition to the 4P and 7P concepts. It then consists of such elements as product, price, promotion, distribution and people.
The 4C concept presents a slightly different view than the elements of the 4P and 7P models, as it is customer-oriented. It was created in 1990 by Robert F. Lauterborn and includes factors such as customer value, cost, convenience and communication.
This element encompasses the benefits the product provides to the customer. It is similar to the first P, product, except that we focus on how our product can serve the consumer. It is worth conducting consumer research here to see if there is any demand for our new product at all. It is customer needs that should drive the desire to create it.
Similar to price, this is an expense that the customer incurs. The difference here, however, is that price is not the only cost that the consumer incurs when purchasing our product. Here we must also take into account the opportunity cost — the loss of potential profit from the alternative, or even the time the customer spent buying the item in the first place.
These are all amenities that affect consumer satisfaction when making a product purchase. The focus should be on making customer service as high as possible and keeping the effort the customer has to make to purchase the goods to a minimum.
This is two-way communication at the customer-brand level. According to the author of this concept, promotion is manipulation, while communication is characterized by cooperation, which is more desirable. The company should focus on dialogue with its customers, accept their opinions, answer questions and take into account the reviews that consumers leave.
The concepts presented here are methods that can help your company function properly in the market and produce satisfactory results. However, the choice of one of them should be preceded by research and analysis of the environment, both internal and external. It is also worth remembering that the Marketing Mix is not a rigid rule that we must stick to. On the contrary. It should be unique to your product and customers, so don’t be afraid to change it and optimize it for yourself.
She has been involved in internet marketing for two years, but despite her relatively short presence in the industry, she has already conducted advertising campaigns for small and large companies, both on the Polish and foreign markets. He treats digital marketing not only as a job, but also as a passion, which is why he tries to expand his knowledge and skills every day. She joined Up&More in January 2023, where she manages projects in Facebook Ads, Google Ads and Apple Search Ads.