5.4a Overview of The Marketing Mix

The Four Ps

The marketing mix, also known as the "4 Ps" of marketing, refers to a set of controllable factors that a business can use to influence consumer buying decisions. The 4 Ps stand for: product, price, promotion, place.

By effectively managing these four elements of the marketing mix, businesses can create a product that meets customer needs and wants, sets a competitive price, promotes the product to the target audience, and distributes the product in the most efficient and effective way possible.

Product

The goods or services that a business offers to its customers. This can be made-up of:

design,
features,
packaging,
branding,
warranties

For the product to succeed, it must be something which potential customers want or need.

The product must be designed and developed according to customer needs, preferences, and market trends. The product should be of high quality, well-designed, and properly branded.

Price

Price refers to:

cost of the product or service
discounts
pricing strategies

It incorporates whether the customer feels the product is value for money (this is not the same as being "cheap").

The price should be set based on market research, competition, and the value of the product to the customer.

It must be competitive to other products on the market, affordable, and provide value for money.

Promotion

The marketing tactics that a business uses to promote its product or service, such as:

advertising
sales promotions
public relations
direct marketing

If a customer is not aware of a product, or they do not understand its benefit to them, they will not buy it.

The promotion should be designed to raise awareness, generate interest, and persuade customers to purchase the product.

Place

Where the customer is able to purchase the product or service. This includes:

the physical location where the product is sold
the online channels used to sell the product

The location must be convenient for customers, accesible, and well-organised.

It must also be relevant to the product or service being offered — after all, a petrol station which is not next to a road would not sell very much fuel!

Adapting to Market Needs

Markets change, and customers may want different things. A business will have to change the elements of their marketing mix to ensure customers continue to purchase.

Product

If competitors are offering similar products, a business may need to differentiate its offer by adding or improving features.

How many times have you seen "new and improved" added to a product?

Price

If customers have less to spend, or there is increased competition, a business may have to lower prices. But a business could increase prices if demand increases.

Promotion

Launching a new product needs lots of promotion to make potential customers aware of it. When established, promotion could be reduced to save costs. Different products will be promoted in different ways, and these can be varied to attract new customers.

Place

A business may need to increase the number of places it sells to continue attracting new customers, this can include expanding overseas. Many businesses switched from selling on the high street to selling online.