Table of contents
In order to achieve specific business goals, each company should conduct appropriate marketing activities. Although there are many ways to accomplish these objectives, many businesses choose the marketing mix. Check what it is all about.
Marketing Mix – What Is It?
In general, the marketing mix refers to the elements that the company can use to promote its brand or product. It is a combination of factors, activities, processes and techniques that are controlled by an enterprise in order to influence the market environment and influence consumers to purchase specific products.
Marketing Mix Concepts
When it comes to the marketing mix, there are several concepts that mixed together influence market activities.
Traditional 4P Concept
This concept refers to developing a product available in the right place and time, which will be properly promoted and will have the right price. There are four main focus areas to this concept:
These are also main tools, which make developing effective advertising campaigns possible.
Product – as it satisfies the needs and expectations – is a value for the customer. Therefore, it must fulfill certain functions and have the appropriate quality. The related elements, such as emotions, aesthetics or the packaging, also play an important role.
Price is the cost that the customer incurs to meet the need. Its amount is determined not only by the production costs, but also by expenditure on promotion and distribution. Various pricing strategies play an important role in this aspect, e.g. well-known brands may inflate prices, which will prove the exclusivity of products, etc. Price determination should include several stages: defining goals and price constraints, estimating demand and revenue, determining the relation between costs, sales volume and profit, selection of an approximate price level, setting the list price, making special adjustments to the list price.
Promotion is a form of communication with the market. It includes the activities and means by which a company communicates information about a product or brand, shapes the needs of buyers, and guides demand. Promotion can therefore not only inform, but also stimulate and compete. It takes into account, among others traditional advertising, online advertising, direct sales – depending on whether it is a mass or interpersonal impact.
Place is nothing more than channels through which the product reaches potential customers. We are talking here about the location of stores as well as the placement of products on the shelf. This element also includes the convenience of purchase – whether the product is easily accessible to the consumer. The choice of distribution channels should take into account several factors, including: the marketing environment, consumers (who are potential customers, where and when do they buy? what products are they interested in?), the product, the enterprise (its financial capabilities, number of products offered).
The Modern 4P Concept
4P is the marketing mix concept that also comes in a more modern version. In this case, the following elements are distinguished as follows:
- people – as the marketing rules apply at all levels, it is important to increase the marketing awareness of all employees; marketing success depends on the people employed;
- processes – control activities that, in the long term, enable establishing relationships with the environment;
- programs – include activities that focus on the customer and go beyond the framework of the classic 4P; this includes, for example, online activities;
- performance – informs about the company’s development based on the financial and non-financial measures used.
The 4C concept is mainly customer-oriented. It includes those elements that are important from the customer point of view – as opposed to 4P which includes elements important for the enterprise.
Consumer wants and needs
It is about conducting a detailed analysis of the consumer’s expectations and preferences, which is used to design a specific product.
It is equivalent to the product in the 4P concept.
Cost to satisfy
This element takes into account the costs to be incurred by the consumer. It is not only about the price of the product, but also the cost of getting to the store, waiting time, and the effort put into the purchase.
It is equivalent to the price in the 4P concept.
Convenience to buy
The key is to provide the consumer with easy access to the product – including finding and receiving information about it. This element also takes into account a pleasant atmosphere and a high quality service.
It is equivalent to the place in the 4P concept.
It is all about building a relationship with the consumer that is based on mutual communication. Thanks to this, the company can receive, among others, feedback on the product.
It is the equivalent of promotion in the 4P concept.
Extended 7P Concept
The 7P concept was founded on the 4P concept. It has been extended by three essential elements as a response to the needs of the modern world. This is because not only products and their promotion play an important role, but also people and relations between the consumer and the enterprise.
Additional elements of the 7P concept are:
- people – they are essential in every company, so you should take care of them regardless of your position; this will translate into better relations with business partners and as a result into increase in sales;
- process – includes all marketing and sales activities aimed at building a good image of the company and developing trust; therefore steps must be taken to guide the consumer through all stages of the purchase;
material certificate – includes all components of the company’s image that are responsible for quality and professionalism, in terms of logo, visual identification, and even the arrangement of the company’s headquarters.
If you are going to launch a new product on the market, do not focus only on advertising. Although it is said that this is the leverage of trading, without the other elements used by the marketing mix, you will not achieve the desired results.