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

Marketing Mix 4P`s

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:

  1. Physical Product

  2. Product mix

  3. Product variables

  4. Product Quality

  5. Branding

  6. 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:

  1. Level of prices (low, high)

  2. Range of prices

  3. Price–Quality relationship

  4. Competitors pricing

  5. Government control over prices

  6. 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:

  1. Channel levels – Manufacturer to Wholesaler to Retailer to Consumer and creation of:

  2. Time utility – Product must be available when needed

  3. Place utility – Locate products where they can be easily acquired.

  4. Possession – Minimize the number of obstacles between the manufacturer and consumer.

  5. Inventory management and control

  6. Physical distribution of goods

  7. 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

  1. Product Quality

  2. Product Utility

  3. 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 –

  1. Distribution system

  2. Consumer behaviour

  3. Government policies

  4. Nature of competition

Product related factors –

  1. Marketing research

  2. Product planning

  3. Sales promotion

  4. Branding

  5. Channel of distribution

  6. Advertising

  7. Personal selling

#ElementsofMarketingMix #FactorsaffectingMarketingMix #MarketingMix4Ps

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