If you’ve been in business for a while, you may have heard the term ‘marketing mix’ get thrown around. This article will help you understand what it’s all about and why it’s important to implement in your business.
In this article:
- What Is Marketing Mix?
- What Are the 4Ps of Marketing?
- What Are Marketing Mix 7Ps?
- Why Is Marketing Mix Important?
- How Do I Make a Marketing Mix?
- How Can Marketing Mix Help a Business?
Everything You Need to Know About Marketing Mix
What Is Marketing Mix?
Marketing mix is a model used to guide the decisions needed for a company’s business development plan. The term was coined by the American Marketing Association in the 1950s.
The marketing mix guides a corporation in finding the answers to business strategy questions such as:
- How do I introduce a product to a target market?
- What can I do to promote my service?
- Which tactics should I employ to increase the following of my brand?
To put it simply, marketing mix is the combination of all marketing tools available to the company in order to achieve its marketing objective. The right combination of these marketing tools enables the company to attract as much profit as possible.
What Are the 4Ps of Marketing?
The 4Ps of Marketing, Product, Price, Promotion, and Place, are important variables in a marketing mix. How you market your product will be based on these elements to ensure that it meets the specific needs of your target market.
The product is the foundation of any business. How your product satisfies the demand of your target market will determine how many customers you get and how much profit you’ll gain.
Your product must cater to the right market, and respond to its demands. Here are some questions you can ask to develop your product:
- What does the customer want from my product or service?
- Does my product or service satisfy their basic needs?
- Which features should I develop in order to meet the needs of my customer?
- Am I including costly features that my customers don’t use?
- What is the life cycle of my product?
- How will my customers use the product? Where will they use it?
- Are there any challenges or problems that may arise when the product is delivered to the customer? What can I do to prevent these problems?
- How is my product different from that of my competitors?
- How should I brand and market my product? What should it look like?
When setting the price of your product, you must consider three things:
- Product Development — How much it costs for the company to make the product
- Perceived Value — How your customers would perceive the value of the product
- Profit — How much profit you would like to get
Here are some guide questions your company can use to help you set the price of your product or service:
- Who are my customers? Are they price-sensitive?
- What is the value of my product or service to my customers?
- Are there established price points for the product or service?
- How does my price compare with my competitors?
- What discounts can I offer my customers?
Promotion refers to all activities involved in making your product or service known. These include:
- Sales promotion
- Public relations
- TV commercials
- Internet ads
- Print media
- Ad features on public transport
- Press release
How you promote and market your product depends on who your target market is and what message you want to get across. Know the best time to promote by learning about your market and product, and knowing how your competitors promote.
Place refers to where a product or service is sold. It is the actual distribution center. The place matters because where you sell your product will determine what kind of market you attract and how many people you can turn into customers.
Here are some questions you can ask yourself when thinking about where you should sell your product or service:
- Where do customers usually go when looking for my product or service?
- What kind of store is most effective? Boutique? Supermarket? Online? Catalog? Direct selling?
- How can I access the right distribution channels?
- Do I need to use a salesforce? Attend trade fairs? Send samples?
- What do my competitors do? How can I differentiate?
What Are Marketing Mix 7Ps?
The 7Ps of marketing are just an extension of the existing 4Ps used in making a marketing mix. It was extended to add: Physical evidence, People, and Process.
The 7Ps were added in order to help companies review issues that may affect the marketing of its product or services.
- Physical evidence — Any business must have a proof of purchase in order to determine the validity of the business. This may include an official receipt, a packaging or delivery receipt.
- People — This pertains to all employees involved in the manufacturing and distribution of the product or service. This looks at how these people perform their jobs in order to deliver the highest quality or products or services possible.
- Process — This involves anything in the organization that impacts how the product or service is handled, from development to customer support.
Why Is Marketing Mix Important?
When thinking of a business development plan, marketing mix is an important model to help you create the right marketing strategy. This model is a useful guide for a company to implement effective tactics to gain the most profit.
The marketing mix model is actually one of the first things an organization should consider when starting a business. The reason for this is because all the company’s decisions on positioning, targeting, and segmentation will depend on this model.
How Do I Make a Marketing Mix?
There are three things you should remember when planning how to market a product:
- Target market
- Goals and budget
Know your target market
Decide on who you want to sell your product or service to and write a quick audience profile. For example, male and female students, aged 18 to 25.
You can also determine what other factors matter, such as income and location. Who your market is will determine what tactics you should employ in your marketing mix. The model adjusts according to who you’re selling to.
Know your goals and budget
Outline what you want to happen. For example, you can note your desired sales quota for the year, and how many leads you need in order to get that. The more tangible, the better.
Employ the right tactics
The marketing tactics you will use in your marketing mix will depend on your target market and your goals.
For example, if your goal is to sell 100 notebooks to university students by the end of the month, you can think up a promo to lower the price to attract students. You can also change the place to be more accessible to your customers.
How Can Marketing Mix Help a Business?
- Product development — Designing a marketing mix involves a lot of market research. In developing this model, you can better develop pricing and promotion strategies to improve your product. Every time you develop your product, this model can guide your decisions.
- Boosting your business — With this model at the center of your business strategy, you can thoroughly analyze your product and think up of ways to stand out from your competitors, and to deliver better customer experiences.
The market today is ever-changing and sometimes difficult to predict. By developing a marketing mix, guided by the 7P’s of marketing, you can ensure the quality of your products and forecast the best ways to improve your products in the future. This model can help you analyze your business so you can keep up with whatever change the future brings.
Do you have other marketing tips related to the marketing mix? Share them with us and our readers in the comments below!