Marketing Mix – 4P`s – Elements, Factors
The term marketing mix was first coined by James Culliton and was described as 4P`s by Professor Jerome McCarthy. Since then the terms ‘marketing mix’ and ‘4P`s’ have been used synonymously.
Marketing Mix refers to the set of controllable factors that a firm can use to influence the buyer’s response within a given marketing environment. It is used to describe the combination of four inputs (product, price, place, promotion) which constitute the core of a company’s marketing system.
Marketing Mix is the combination of different marketing decision variables used by a firm to market its goods and services. These four marketing mix elements form the core of all marketing efforts.
Elements of Marketing Mix
Product – A product is anything that satisfies a consumer need. It may be a good, service, event, experience etc. The first step in marketing is to identify and develop a product that consumers`s demand. It involves decisions regarding:
Physical Product
Product mix
Product variables
Product Quality
Branding
Packaging etc.
Price – Price is the amount of money that a buyer has to pay in order to own a product. A marketer makes price alterations in order to attract the customers through discounts, allowances, coupons etc. The element of price is concerned with determining:
Level of prices (low, high)
Range of prices
Price–Quality relationship
Competitors pricing
Government control over prices
Psychological effect of pricing
Place – It is concerned with the delivery of a product from the place of production to the final consumer. A producer may sell a product directly or through intermediaries. It involves decisions regarding:
Channel levels – Manufacturer to Wholesaler to Retailer to Consumer and creation of:
Time utility – Product must be available when needed
Place utility – Locate products where they can be easily acquired.
Possession – Minimize the number of obstacles between the manufacturer and consumer.
Inventory management and control
Physical distribution of goods
Order processing and Transportation
Promotion – Promotion refers to communication of information about a product and its features to potential customers through various forms of media. It is the process of educating customers through various forms of media about
Product Quality
Product Utility
Product Price
It involves selection of a combination of tools of promotion like advertising, sales promotion, personal selling, publicity and public relations to persuade potential customers to buy a product or service.
Factors affecting Marketing Mix
Market related factors –
Distribution system
Government policies
Nature of competition
Product related factors –
Product planning
Branding
Channel of distribution
Personal selling
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