Definition of Marketing Mix
This can be defined as “set off controllable, tactical marketing tools by which a company blends to produce the desired response in targeted market.
After deciding objectives and goals of company then companies makes its marketing strategy. At this stage company needs to do detail planning for marketing mix strategy. Its is one of the major and more important concepts in modern marketing. McCarthy who originally developed the 4Ps, he stated it “It is combination of controllable factors at a marketer’s command to satisfy a target market”. With the help of 4ps of marketing mix a particular company can easily influence the demand and price of its products and services.
The old marketing concept was based on “sold products or services what your company made or produced but the modern marketing concept is based on “a company must produce and sell what the customer wants”.
4Ps of Marketing Mix
Product refers to goods and services or combination of these two which a company offers to sale in a targeted market. Services or convenience also included in a product as these are the part of offering. Product decisions include the followings:
- Brand name and quality
- Design and appearance of product
- Function and features of products
- Repairs and support
- Packaging and other services
- Warranty and guaranty
Price refers to the amount of money which a company charges against its particular product or services or the amount of money which customer have to pay to obtain a particular product. Price decisions include:
- Pricing strategy (skimming or penetration)
- Profit margin
- Pricing response of competitors
- Retail price
- Seasonal pricing
- Wholesale price
- Volume Discounts
Where a company going to sell its products or services at selected price? This refers all those company activities make the products and services available to targeted customers. Companies need to select their dealer, retailer and wholesaler carefully and support them. Companies also need to focus on that how the seller is demonstrating their products to potential customer, this refers to shelf policy of a company. Company’s decisions in regard of place include:
- Distribution channels policy
- Shelf policy
- Inventory management
- Order processing
- Direct or indirect sale decisions
- Online selling decisions and policy
Promotion refers to all those activities that communicates the merits, features and attributes of a product and persuade targeted customers to purchase it. All aspect of advertising, packaging, brochures, salespeople and sales methodology are all included in promotion. Promotional decisions include:
- Breakeven decision
- Marketing and advertising strategy
- Public relation and publicity
- Marketing communication budge
Many marketer and other marketing specialists are now seeing the 4Ps of marketing mix as too product-oriented and they also adopted the 4Cs marketing mix. This 4Cs model actually looks at the marketing from the customer’s point of view.
- Place becomes Convenience
- Price becomes Cost to the user
- Promotion becomes Communication
- Product becomes Customer needs and wants
These C’s reflect a more customer-oriented marketing philosophy. 4Cs provide useful reminders to marketers for example marketer need to bear in mind the convenience of the customer when deciding where to offer a product or service. To apply the 4Cs approach marketer must consider the impact of the “uncontrollable” elements on company’s marketing mix. The 4Cs requires a marketer to think like a customer.