What is Marketing Mix?
Marketing mix is the combination of tools, tactics, techniques, and actions it employs to accomplish a marketing goal in an organization. All actions that an organization can take to influence the market demand for its products and services are considered marketing. Throughout the marketing mix, all aspects of an organization are mixed, while promoting products and services, to generate sales and reach the organization’s goals. According to this, an organization should produce products that match customers’ tastes, wants and needs, and as these changes occur, the organization’s production and marketing methods should also change, which means that they require situational and superior approaches.
A typical marketing mix is composed of four elements: price, product, promotion, and place. However, nowadays the marketing mix encompasses several other Ps such as Packaging, Positioning, People, and even Politics.
Characteristics of Marketing Mix
Businesses use the marketing mix to achieve their marketing objectives by using a set of controllable tools. Here are the features that make it stand out in the market today:
a) Combination of Marketing Tools or Variables : It is a combination of different marketing tools and variables. They are interrelated and interdependent. Decisions made in one area affect the actions taken in others. An individual tool or component can’t achieve the marketing objective and target.
b) Effective for Realizing Marketing Goals : A marketing mix can actually be a powerful tool. In order to achieve sales, profits, and customer satisfaction goals, all components are used.
c) Dynamic and flexible : Marketing mix changes with the dynamics of the marketing environment rather than being rigid. According to changing marketing situations, the marketing manager must constantly adjust the components of the marketing mix.
d) Combination of ingredients : As a result of marketing mix components, the marketing manager does not automatically achieve the marketing goals and meet the target. These ingredients must be combined skillfully to achieve the desired results.
e) Customer, The Focus Point: Basically, it is a method of marketing that focuses on the customer. It aims to satisfy the customer in the end. According to this model, the success of any business depends on how satisfied customers are.
Components of Marketing Mix
Marketing mix is composed of tools or variables that adjust according to the changing situation of the marketing system. When products are not suited to customer needs, are too low or too high priced, are poorly promoted, or are improperly distributed, the level of exchange will not be reached.In today’s ever-changing business environment, the marketer needs a thoroughly planned and competent marketing mix to succeed.In order for the marketing goal to be achieved, there are seven main components of a complete marketing mix.
Consumers consume products offered to them. Developing the right marketing product is an essential part of a marketing manager’s job. Customer needs and wants should be satisfied by the right product. An analysis of the life cycle of the product should be conducted by the manager. Quality, size, design, features, innovation, branding, packaging, and other product attributes are considered important throughout the product life cycle.
Buying a product involves paying a price. Identifying the fair price of its products is essential to the marketing manager’s success. An affordable and acceptable price is what a fair price is. Prices are determined by a combination of pricing objectives, pricing techniques, sales terms and conditions, terms and conditions, and pricing strategies.
c) Place or Distribution
Distributors are the ones who distribute the product. By choosing and managing the channels and developing an efficient distribution system, marketers can provide products to the right places, at the right times, and in the right manner. When a product is consumed at a maximum rate, it is in the right place where it is in high demand.It is crucial that the marketer understands the distribution channel, channel structure, role and power of marketing channels such as retailers and wholesalers, and channel conflicts and solutions.
By using the right promotional means, the marketing manager can inform and convince the target market. Promotions include sales promotion, advertising, personal selling, publicity, public relations, etc. Advertisements provide more and more information to the customers. Advertisements are made in newspapers, magazines, radio, cinemas, and televisions, etc., for heavy machines, capital goods, instruments, and capital assets. These aid in removing any doubts or problems a customer may have.
Sometimes, the four Ps are expanded to include the seven Ps. In addition to the usual four Ps, the seven Ps include physical evidence, people, and process.
e) Physical evidence
There are both tangible elements and an environment in which companies interact and deliver services to customers in physical evidence. Physical evidence may include the appearance and decoration of a physical space. Employee appearance, clothing, and behavior can also be referred to as professionalism. In addition to product packaging, delivery receipts, signage, or the physical layout of a store, physical evidence can be provided by physical evidence.
A company can differentiate itself from its competitors based on physical evidence. Consumers can feel comfortable with lighting, layout, and interior design. Lighting, layout, and interior design impact consumers’ emotions. Customer perception of a business is also influenced by physical evidence.
A clean, welcoming environment is expected from customers when they enter the restaurant. Let’s imagine that it is smelly and dirty inside. It causes customers to leave immediately in those situations, even if the food quality is the same as other restaurants that are cleaner.
Recruitment and training of employees, as well as those who interact directly with customers (such as salespeople, customer service representatives, or delivery drivers). It includes a variety of factors, including how well employees perform their jobs, how they appear to customers (such as how their uniforms look), and how clients feel about their experience.
Employees and business managers are included in this marketing mix. It involves selecting and training the right people to handle customers. The way that staff interact and communicate with customers impacts marketing success. Based on the attitudes of the organization’s representatives, customers rate its services. When staff treat customers with respect and trust, customer relationships are formed. Using them creates a positive impression, a willingness to use services, and they might recommend others to use them. On the other hand, if not, disloyal customers and bad reactions can result.
Services are provided through processes, procedures, and policies. The company must provide a consistent level of service to all customers in order to build customer loyalty and trust. Consistent service also helps increase efficiency, thereby saving time and money.To provide their services, companies need clearly defined and efficient processes. Everyone knows what they need to do and how they need to do it. Computerization and automation may also enable it, such as in customer savings accounts.
Importance of Marketing Mix
Marketing objectives and targets are achieved primarily by using the marketing mix. Marketers or manufacturers must concentrate at least on the significant components of the marketing mix in order to attract new customers, retain existing customers, or promote sales.
Why The Marketing Mix Is Important?
The following points illustrates the significance and Importance of Marketing Mix.
a) Marketing Mix helps in a clean mix creation.
Each P in your marketing mix should be compatible with the others. Your price should be compatible with your product placement. Promotions and products should be compatible. There is an intrinsic link between all the Ps. When you create a marketing mix for a business, you are making a chain of strong ties. As the chain grows, these bonds help to strengthen it. It is important to look at the overall picture when creating a marketing mix for the product, whether you are adding a feature or changing something existing.
b) Marketing mix helps in New product development.
To achieve desired objectives and targets, marketers need a suitable plan and program. Plans and programs are based on the marketing mix, i.e. they provide marketing managers with the most appropriate marketing plan and program. There are many ideas which can be developed by a company when designing an existing product in relation to a related product. Prices, promotions, and locations may differ. The company is still able to come up with good ideas for NPD while designing the marketing mix for this product.
c) Marketing mix helps increase the product portfolio.
The number of products you offer or the length of your product line must be increased through minor product changes. By doing so, you are making minor changes to your marketing mix. The product features, the price, and possibly the promotions will all be altered. Thus, you can expand your product portfolio by altering the marketing mix and certain features within it.
d) Marketing Mix is a guide to improve a business.
In the service marketing mix, physical evidence was an important P. Businesses that realise its importance may improve their physical evidence and secure more business. More than just one P is important to the marketing mix. Organizations are made up of people and processes, and optimizing both will enhance the overall workings of the organization. If someone is performing gap analysis for their business and wants to improve, marketing mix is a great guide.
e) Marketing Mix helps in differentiation .
There are many different ways to differentiate yourself from the competition when you analyze the marketing mix of competitors. It is possible to create better promotions for your own product by analyzing the competitor’s promotions.There may be problems with the competitor’s product placement or he may have hired the wrong personnel on the job. You can improve all of these aspects, giving you a competitive advantage in the market.
f) Marketing Mix will keep you dynamic.
Companies that are well prepared will also be prepared for disasters. Companies should be prepared to respond during recessions or when the business environment is bad. The company must be dynamic during such times. In such a case, the company must be able to comprehend its product, processes, people, promotions and all the other P’s. By understanding them, the company will be more agile in its response.An organization may benefit from marketing mix in many ways. Moreover, analyzing and understanding the marketing mix is not a time-consuming exercise and provides a much higher ROI.
Four Cs of a Marketing Mix
Consumers have unlimited wants and needs. A business should focus on solving problems for consumers rather than creating products under this model. Identifying what customers want requires studying consumer behavior and needs, along with interacting with potential customers.
Acquisition costs include more than just the price of a product or service. The time it takes to research and purchase a product is included in the cost. Consumers must also consider the cost of trade-offs, such as forgoing another purchase or feeling guilty for buying or not buying a product.
The ease or difficulty of finding and purchasing a product for consumers. With the rise of Internet marketing and online purchasing, convenience has become a more important factor in customer decisions than location.
Consumer and seller should be in constant dialogue. Marketing, advertising, and media appearances can all contribute to this. However, in the digital age, it also includes emails that customers opt into or initiate, brand ambassadors, blog posts, websites, product placements, and social media channels.
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