Meaning and Definition of Marketing Mix
According to Philip Kotler___ “Marketing mix is the mixture of controllable marketing variable that the firm uses to pursue the sought level of sales in the target market”.
Marketing Mix is a strategy which a company uses to formulate a product or service offering for its customers. Marketing mix strategy is created using the 4P’s of marketing – Product, Place, Price, Promotion. The main objective of marketing mix strategy is to make the right product at correct price at the right place with right promotion.
Elements of Marketing Mix
1. Product: Product is either a tangible good or an intangible service that is seem to meet a specific customer need or demand. All products follow a logical product life cycle and it is vital for marketers to understand and plan for the various stages and their unique challenges. It is key to understand those problems that the product is attempting to solve. The benefits offered by the product and all its features need to be understood and the unique selling proposition of the product need to be studied. In addition, the potential buyers of the product need to be identified and understood.
2. Price: It covers the actual amount the end user is expected to pay for a product. How a product is priced will directly affect how it sells. This is linked to what the perceived value of the product is to the customer rather than an objective costing of the product on offer. If a product is priced higher or lower than its perceived value, then it will not sell. This is why it is imperative to understand how a customer sees what you are selling. If there is a positive customer value, than a product may be successfully priced higher than its objective monetary value. Conversely, if a product has little value in the eyes of the consumer, then it may need to be under priced to sell.
3. Promotion: These may include advertising, sales promotions, special offers and public relations. Whatever the channel used, it is necessary for it to be suitable for the product, the price and the end user it is being marketed to. It is important to differentiate between marketing and promotion. Promotion is just the communication aspect of the entire marketing function.
4. Place: Place refers where the product or services are offered to sell. Distribution is a key element of placement. The placement strategy will help assess what channel is the most suited to a product. How a product is accessed by the end user also needs to compliment the rest of the product strategy.