By Dr. Kar
The term marketing mix was coined in the early 1950s by Neil Borden in his American Marketing Association presidential address. This is one of the preliminary knowledge every marketer must have and is considered to be the basics of every marketing theory, which emerged henceforth.
The basic major marketing management decisions can be classified in one of the following four categories, namely Product; Price; Place (distribution); and Promotion.
The four P components of the Marketing Mix | Photo Courtesy: Business FundaesProduct
[su_pullquote align=”right”]Every product is subject to a life-cycle including a growth phase, followed by an eventual period of decline as the product approaches market saturation.[/su_pullquote]
It is the tangible object or an intangible service that is getting marketed through the program. Tangible products may be items like consumer goods (Toothpaste, Soaps, Shampoos) or consumer durables (Watches, IPods). Intangible products are service based like the tourism industry and information technology based services or codes-based products like cellphone load and credits. Product design which leads to the product attributes is the most important factor. However, packaging also needs to be taken into consideration while deciding this factor. Every product is subject to a life-cycle including a growth phase, followed by an eventual period of decline as the product approaches market saturation. To retain its competitiveness in the market, continuous product extensions though innovation and thus differentiation is required and is one of the strategies to differentiate a product from its competitors.
Price
The price is the simply amount a customer pays for the product. If the price outweigh the perceived benefits for an individual, the perceived value of the offering will be low and it will be unlikely to be adopted, but if the benefits are perceived as greater than their costs, chances of trial and adoption of the product is much greater.
Place
Place represents the location where a product can be purchased. It is often referred to as the distribution channel. This may include any physical store (supermarket, departmental stores) as well as virtual stores (e-markets and e-malls) on the Internet. This is crucial as this provides the place utility to the consumer, which often becomes a deciding factor for the purchase of many products across multiple product categories.
Promotion
[su_pullquote]A certain amount of crossover occurs when promotion uses the four principal elements together.[/su_pullquote]
This represents all of the communications that a marketer may use in the marketplace to increase awareness about the product and its benefits to the target segment. Promotion has four distinct elements: advertising, public relations, personal selling and sales promotion. Advertising may include using specialty packaging to showcase products, utilizing promotional products for your company, or online ads. A certain amount of crossover occurs when promotion uses the four principal elements together (e.g. in film promotion). Sales staff often play a major role in promotion of a product.
So how does a marketer strategize to attain success in a marketing program, using these 4 P’s?
Picture shows the four Ps of Marketing | Photo Courtesy: Business FundaesOffering specificity introduces the contextual customization of what needs to be done to address the questions raised in each of these 4 Ps of Marketing.
What is it that the marketer is trying to provide value, through each of the disguised value proposition to the end consumer. In there very essence, the 4 Ps of marketing is actually a framework that allows the marketer to structure the value proposition of an existing product (or a new product at the time of launch) so as to garner the highest mindshare by distinctly structuring the same. However, that is easier said than done and many marketers fumble when it comes to playing with the real life nuances and bringing out a crisp value proposition.