In this article, we consider the tool without which it is impossible to create a successful business or a profitable company. The tool serves as the basis for all marketing strategies and is studied at all marketing universities as one of the leading techniques for goods and services promotion. Here, we are going to talk about the Marketing Mix and the 4Ps of Marketing.
What is the marketing mix?
When starting discussing the problem, first, let’s define its notion. So, what is the marketing mix? The definition states that the regarded method is the ability to put the right service or good at the right time, in the right place, at the right price. The point is that you may count on unconditional success only when all the above-mentioned criteria are met. If at least one of the parameters is missed or poorly developed, then the whole strategy can be ruined. A skilled marketer (a group of employees) is the one who knows how to combine all these options to get the best result.
If we put it simply, a marketer should develop the product that will be useful for a target audience and welcomed by customers, set the right price, find the place where a good will be best purchased, and do it at the right moment. Here, a successful combination of factors.
Let’s learn a bit of history: the technique was developed by E. Jerome McCarthy in the1960s. Since then, it has been widely used all across the world and has become an indispensable part of the marketer’s performance. The concept is taught to all students of business schools.
It is also worth mentioning that later, the 4Ps of Marketing was the foundation for the development of other marketing mixes. These are the 4Cs theories, the 7Ps of service marketing, and some others.
I hope that the definition is clear and we can proceed to marketing mix components. Thus, the method includes 4 elements:
These are the crucial constituents that are required for fruitful and profitable business development. Now, let’s consider each of them in detail.
What do we mean by a product? It is any produced item or service, which satisfies consumers’ needs. In the economy, all products are divided into intangible (services) or tangible (goods). It means that different enterprises offer either tangible goods (food, clothes, mechanisms, etc.) or intangible services (consultations, cleaning of premises, maintenance, etc.). All these are called a product.
Before designing a new product, it is necessary to conduct a thorough market and consumer analysis to find out the right type of good. After making conclusions and choosing a product, it is also important to consider its life circle.
Each good has its life circle. It means that like a human, a product goes through the growth stage, the maturity stage, and the decline stage. The purpose of marketers is to find ways to re-stimulate customer interest once a good reaches its sales decline stage. It can be either the creation of a brand new product or diversifying an existing product line, for instance.
In order to design a better good than competitors offer, every marketer should ask him-/herself the main question: “what can and should I do to introduce a better product to my target audience than my competitors do?”
The below-listed questions help marketers develop the right product and understand its worth for consumers. Their objective is to help generate new and creative ideas as well as simplify the process of designing new products:
- What does a client expect from our good?
- In what fields and for what purposes will buyers use our product?
- What consumer needs does our service or good satisfy?
- What name should have a product?
- What are the principle differences in our product in comparison with the one offered by competitors?
- How does it look like? Will it be enough catchy?
- Do all parameters (size, colors) perfectly match?
- What branding strategy is it necessary to choose?
- Are there missed features?
- Are there excessive features that customers do not need but which can increase a product’s cost?
Basically, a product price is the amount of money, which consumers are ready to pay for an offered service or good. This notion is also crucial for the marketing plan of an entire company since its revenues directly depend on the prices of its products.
It is important to understand than pricing is a quite touchy issue. The point is that a new company can’t set a high price since it is unknown to customers. Even if the quality of an offered good is high, consumers won’t be ready to pay such money since your name is still new on the market and they are not familiar with your products. When you make a name and establish yourself on the market, clients will be able to pay even more money if they will be satisfied with offered products.
One more tricky point is that pricing determines how your good will be perceived in consumers’ eyes. Thus, a low-price product is considered as an inferior good. But the reverse side of a coin is that too high price won’t attract buyers as they compare your service/ good to one of your competitors. Thus, it is necessary to find a golden mean. In this case, the analysis of competitors’ pricing will help you make the right conclusions and set the optimum price.
At this stage of the marketing mix, the employees that are engaged in price formation should ask themselves such questions as:
- How much did I spend to manufacture the product?
- Are there any price points for a particular region?
- Will a slight price decrease help attract more clients and increase my position on the market?
- Is the current price competitive?
Finding the right place is all about the ability to think like your target audience. You should put yourself in your buyers’ shoes. If you manage to understand what potential customers are guided by, you will definitely choose the right place and the appropriate distribution strategy.
There are different types of the product distribution: an exclusive technique, franchising, an intensive method, a selective process. Before choosing the most suitable one, employees should answer the following questions:
- Where are you going to offer the product?
- Is your good for an online sale? Or will it be represented in stores/ malls/ boutiques?
- What means will you use to access various distribution channels?
- Is there any differentiation between your distribution channels and ones of your competitors?
- Is it necessary to attend trade fairs, visit an online site, or use a sales force?
This is a crucial constituent of the marketing mix 4ps. This is promotion that helps boost sales and company recognition. Promotion comprises various means. It is implemented using different tools. Let’s analyze a few of them, which are the most widely used.
Advertising is a paid method of communication with your target audience. This includes radio commercials, television and Internet ads, print media. Nowadays, marketers observe a shift from the offline world to online space.
In contrary to the previous method, public relations are a free tool that includes seminars, promotion product exhibitions, events, press releases, etc.
One more widely-spread technique is word of mouth. It is an informal mean of promotion when satisfied buyers tell about product benefits to their friends, relatives, colleagues. The method is used either in real life or the Internet world. The technique is quite successful as people tend to believe their close surrounding. While promoters and commercials are aimed at making them buy a certain service/ good.
One more important remark: when considering distribution channels, do not forget to analyze the promotional mix of your competitors.
At this stage, it is necessary to find answers to the following questions:
- What are the best ways of goods/ services distribution for your company?
- How will potential customers receive your message? By what means?
- What is the best time for promotion?
- Are you going to use any social networks for distribution of your products?
- What promotional place do your competitors use?
It is possible to combine several promotion techniques. Your choice will depend on the available budget, a target market, the message that you want to deliver to potential clients.
Where to use and for what purposes?
The marketing mix is a useful tool for office employees, marketers, and businessmen. If you just start a new company, then you won’t hit the target without the method. Its main objective is to help find the right way how to take a new offer to the market. The technique helps analyze your chances on the market, find out whether your product will be competitive and profitable, as well as test the chosen marketing strategy.
Every self-respective company, enterprise, business uses the method. Whether it is a small entrepreneur or a large manufacturing factory, the 4Ps of Marketing will help prosper and expand your place on the market.
Marketing Mix 7Ps
This is a modified version of the 4 piece of Marketing. Having been developed on its bases, the 7Ps model includes all the above-described constituents +3 more. These are:
- Physical environment
This technique is mainly applied to service industries.
Here, either a company’s staff or a target audience are meant.
Before developing a new service or good, it is important to make an analysis of a target audience and find out whether there are enough consumers of your potential product.
When speaking about employees, it is necessary to find the best specialists who will be able to perform their responsibilities properly. It’s great luck to find a person who is fond of his/her work as his/her efficiency will be higher.
The execution of services is highly affected by the process and systems of the organization. Therefore, in order to minimize costs and increase profits, make sure that your process is well-tailored.
Any system (payments, a sales funnel, or distribution channels) may leg behind. Take the necessary measures to speed it up and make your process run efficiently.
It is a combination of such factors as facilities, comfort, smart, interface, which create the right impression about a service/good. This point means that you should provide physical evidence of your existing on the market in order to become well-known. The best examples of successful marketing campaigns are McDonald’s, Nike, Adidas. They wisely used their physical evidence and nowadays they are recognized all over the world.
4Cs of Marketing
It is a transformed model of the 4Ps of Marketing. In 1990, Robert F. Lauterborn modified the 4Ps of Marketing and created the 4Cs of Marketing. According to this method:
- Price is replaced by Cost. Lauterborn stated that besides price, it is necessary to take into account opportunity and conscious costs.
- Customer value stands for Product. The product should primarily satisfy consumers’ needs and desires. Thus, an analysis of their needs and wants should be an obligatory part of the phase.
- Place is replaced by Convenience. The product should be available to customers everywhere. It is important to foresee distribution locations so that potential buyers have an opportunity to make a purchase at any time the need.
- Communication stands for Promotion. Lauterborn explained that “promotion” is the tool of manipulation, while “communication” is aimed at cooperation and open dialogue with consumers.
Tools for creating marketing mixes presentations
Nowadays, there is not a single meeting or conference that is held without digital hardware. The application of laptops, projectors, other digital equipment significantly simplifies processes of numerous topics consideration and discussion.
Thus, presentation creation does not seem to be a brand new idea today. In this connection, we would like to list some marketing mix presentation slides designed especially for the considered topic. These templates will help display data, describe ideas, and consider related topics. Here, we share some links to the service where you can find dozens of useful and high-quality templates for marketing mix 4 p’s PowerPoint presentations.
It is a free slide using which every employee can display results of the marketing mix analysis on high-resolution devices. Every site visitor can download the slide right now just in a few clicks. The main features of the template are the presence of all built-in tools, a “drag and drop” function, a clear and user-friendly interface. The slide will help prepare a marketing mix ppt presentation in several minutes and clearly describe a question.
This is another free element. This one is designed for marketing mix 7ps PowerPoint presentations. The slide consists of a text block with listed components of the technique and a vivid colorful chart. It is a convenient and helpful working tool for marketers and other office employees, which is able to make work efficient, quick, and easy. The slide is equipped with all the necessary tools and functions.
This is a great pack that comprises 32 unique slides. Such a variety of elements allows choosing a new one for every report, project. Every slide has its own design. Icons are used to diversify and clarify templates. The combination of charts, lists, and text blocks is used to create a clear and attractive marketing mix presentation. There are elements for 4Ps and 7Ps models. Slides can be printed. It is possible to choose different colors.
By the way, these are just a few examples of templates. On the website, you’ll find plenty of them. All elements are designed for different software; thus, it is possible to find a suitable item not only for PowerPoint utilities but also for marketing mix Keynote or Google Slides presentations.
I hope that we assure you to use the technique during a workflow if you still do not do this. The message is that it doesn’t matter what type of marketing mixes for services and products you choose, the main point is that any of them is ready to improve your position on the market and enhance efficiency. If you get acquainted with the concept of the considered mixes, you’ll definitely prosper and achieve financial success. And these tools will help simplify your workflow and organize it correctly.