The marketing mix is the set of controllable, tactical marketing tools that a company uses to produce a desired response from its target market. It consists of everything that a company can do to influence demand for its product. It is also a tool to help marketing planning and execution. Show
The four Ps of marketing: product, price, place and promotionThe marketing mix can be divided into four groups of variables commonly known as the four Ps:
Marketing toolsEach of the four Ps has its own tools to contribute to the marketing mix:
Marketing strategyAn effective marketing strategy combines the 4 Ps of the marketing mix. It is designed to meet the company’s marketing objectives by providing its customers with value. The 4 Ps of the marketing mix are related, and combine to establish the product’s position within its target markets. Weaknesses of the marketing mixThe four Ps of the marketing mix have a number of weaknesses in that they omit or underemphasize some important marketing activities. For example, services are not explicitly mentioned, although they can be categorized as products (that is, service products). As well, other important marketing activities (such as packaging) are not specifically addressed but are placed within one of the four P groups. Another key problem is that the four Ps focus on the seller’s view of the market. The buyer’s view should be marketing’s main concern. The four Ps as the four CsThe four Ps of the marketing mix can be reinterpreted as the four Cs. They put the customer’s interests (the buyer) ahead of the marketer’s interests (the seller).
Want to learn how to understand and talk to your customers? Join us for our next cohort of the Customer Development Immersive. Expanding your business into a new market? Sign up to access our International Growth Collection —it features specialized resources built in partnership with Export Development Canada. The marketing mix is an essential tool in building and implementing an effective marketing strategy. It should be used to show prospects why your product or service is different and better than your competitors. In this article you’ll learn what a marketing mix is, why it matters, and the 10 steps to follow for building the perfect marketing mix for your business. What is a Marketing Mix?The marketing mix refers to the various elements of your company’s offering in the market. It is a varied “mix of ingredients” used by your business to achieve its objectives by marketing its products or services effectively to a particular customer group. The marketing mix, also referred to as the 4 Ps, is comprised of four main pieces – Products, Price, Promotion and Place. The 4Ps describe what marketers can control and are the most critical elements when building your marketing strategy.  Image Source: bbc.co.uk Product Product is concerned with developing the right product or service for your target market. Your product or service must satisfy a specific consumer need. This first P is made up of two core components:
Kaffeine, a London-based coffee shop, attracts customers by branding their business and products as hassle-free and friendly. They use their shop design of crumbling brick walls and comfy wooden crate benches to create an image visitors can easily align with their brand. Image Source: www.cosycoffeeshops.co.uk Price When setting a price for your product, you must consider competition in your target market place, and the cost of the total marketing mix. Also estimate customers’ reactions to possible product prices. Thegymgroup.com offers a great pricing incentive. Unlike other gyms, they don’t bind you to an expensive contract and you receive 3 free training sessions. Image Source: http://www.thegymgroup.com/ Place This involves all the decisions in getting the right product to your target market’s environment. Placement decisions, such as accessing the right distribution channels, should take into consideration where customers would expect to find a product or service like yours. Part of the place decision is also the layout of your store or shop. It should pull customers into your shop, making it easy for them to locate merchandise. Nakedwines.com have created their whole marketing strategy around the element of place. Customers can fund independent winemakers and receive exclusive access to wines at wholesale prices, and it’s all available online. Source Image: https://www.nakedwines.com/ Promotion This is about telling your target market about your product or service. It involves direct communication between sellers and potential customers. ITC Luxury Travel uses various means of communication with their customers and promotion for their services. They’realso active on social media sites, including Twitter, Instagram, Facebook and Google+. Their Newsletter sign-up offers yet another opportunity for product promotion. Source Image: https://www.itcluxurytravel.co.uk/ If the 4Ps seem outdated to you, try R.F. Lauterborn’s 4Cs and decide if his take on the marketing mix is a better fit for your business. The 4 Cs replace the 4Ps with:
Image Source: marketingmix.co.uk Why is the Marketing Mix Important?In your day-to-day business activities it’s difficult to turn your attention to the big picture, especially when you’re putting out fires left and right. Your marketing mix provides a roadmap for your business objectives. It keeps you on track, while keeping your target market in the forefront of your mind. Your marketing mix will help you make sure your business is marketing the right product, to the right people, at the right price and time. 10 Steps to an Effective Marketing MixUse these 10 steps to assist you in building your perfect marketing mix for a successful product offering. Step 1. Goals and ObjectivesTo create the right marketing mix you must first clearly define what you want the end result to be – more customers, brand awareness, higher sales, etc. Every marketing plan has its own marketing goals. Also ensure you have set a specific time frame in which to achieve your goals. Step 2. Establish Your BudgetHow much money are you willing to spend on product innovation, consumer research and product promotion? Step 3. Determine Your Unique Selling Proposition (USP)Describe the benefits users will experience from using your product or service. What unique problem are you solving better than anyone else? For example, Tom Shoes gives a new pair of shoes to a child in need for every pair you purchase. Image Source: Toms Shoes Step 4. Who is Your Target Market?In order to communicate effectively with your audience, you need to know who they are and how they prefer to be communicated with. Create an in depth profile of your ideal customer. Make sure you’ve gathered enough consumer data to develop a complete picture of your ideal buyer. Step 5. Ask Your Customers Advice
Use their answers and the language they used in your marketing material. You’ll appear more relatable and approachable to your audience. Step 6. Define Your Product in DetailTake your time describing the specific qualities and value of your product. Look for the unique features that show your product’s worth. Step 7. Know Your Distribution ChannelsIdentify the places your product will be marketed – which distribution channels you’ll make use of. Your choice of distribution channel will influence your pricing and your promotion decisions. Depending on your audience and product your main options will be:
Image Source: web-books.com Step 8. Create a Pricing StrategyYou need to discover clever ways of differentiating your product on price. Research your competitors and make sure you’re not overcharging your customers. You will also need to consider what your target audience might be willing to pay and what it costs to actually produce your product. Step 9. Choose Your Promotional TechniquesYour target audience needs to be made aware of your product offering. Successful promotion of your product includes various elements, like:
Step 10. Use Inbound MarketingThe 4Ps of marketing creates the basis of your marketing strategy, but inbound marketing also plays a vital role in developing your marketing mix. An effective inbound marketing mix should include:
Image source: marketectinc.com ConclusionA well-developed marketing mix will help you develop products and services that better serve the wants and needs of your target market. Done right, your market mix will help your customers understand why your product or service is better than those of you competitors. Although the 4Ps should remain core to your marketing mix, inbound marketing should also form part of your overall marketing strategy. Use these 10 steps to help you develop your perfect marketing mix. We hope you’ve enjoyed this post. Please leave a comment below regarding any future business topic you’re interested in learning more about. Discover The 12 Marketing Secrets of Fast-Growth CompaniesFind out what they do to achieve outrageous business success What is the product mix strategy how can you use to generate better sales for your Organisation?Products can be modified in three ways: quality, function and appearance. This approach will only work if the product can be modified and the modification is consistent with customer needs. Functional modifications improve the product's effectiveness, convenience or safety.
What is product mix strategies?What is a Product Mix Strategy? A successful product mix strategy enables a company to focus efforts and resources on the products and product lines within its offerings that have the greatest potential for growth, market share, and revenue.
How does product mix encourage sales?Having two products to sell instead of one means you have multiple ways to generate revenue. The number of ways you can generate revenue increases with the number products you sell, thereby giving you reasons to make new ones. In short: more products usually means more sales!
What are three strategies for developing an effective product mix?There are three standard types of product positioning strategies brands should consider: comparative, differentiation, and segmentation.
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