MARKETING MIX
In marketing management, segmentation and targeting plays vital role and preparation of marketing-mix based on variables of market is more significant for the successful marketing. According to the element of market variables, the marketer makes up the marketing mix, the market variables are (Marketing Mix) ;
1.Decision on products or service.
2.Decision on price.
3.Decision on promotion.
4.Decision on distribution / place.
The Marketing Mix (The 4 P's of Marketing); with the help of the marketing mix, marketer need to understand how to position the offering in the market.
What is marketing?
The definition that many marketers learn as they start out in the industry is: Putting the right product in the right place, at the right price, at the right time.
—It's simple! You just need to create a product that a particularly group of people want, put it on sale some place that those same people visit regularly, and price it at a level which matches the value they feel they get out of it; and do all that at a time they want to buy. Then you've got it made!
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The term "marketing mix" became popularized after Neil H. Borden published his article in 1964. The Concept of the Marketing Mix. Borden began using the term in his teaching in the late 1940's. The ingredients in Borden's marketing mix included product planning, pricing, branding, distribution channels, personal selling, advertising, promotions, packaging, display, servicing, physical handling, and fact finding analysis.
—E. Jerome McCarthy later grouped these ingredients into the four categories that today are known as the 4 P's of marketing, depicted below:
Understanding the Marketing Mix Tool
Discussion on Marketing Mix
—Product Decisions;
It refers to tangible, physical products & services. Examples of the product decisions to be made:
- —Brand name
- —Functionality
- —Quality & Styling
- —Safety &Warranty
- —Packaging
- —Repairs and Support
- —Accessories and services
—Price Decisions;
Some examples of pricing decisions include:
- —Pricing strategy -skim, penetration
- —Suggested retail & wholesale price
- —Volume discounts & Cash discounts
- —Seasonal pricing
- —Bundling
- —Price flexibility
- —Price discrimination
Distribution (Place) Decisions;
Examples includes;
- —Distribution channels
- —Market coverage (inclusive, selective, or exclusive distribution)
- —Specific channel members
- —Inventory management & Warehousing
- —Distribution centers &Order processing
- —Transportation & Reverse logistics
—Promotion Decisions;
Various aspects of Mktg communication, the information about the product. It decisions include:
- —Promotional strategy (push, pull, etc)
- —Advertising & Sales promotions
- —Personal selling & sales force
- —Public relations & publicity
- — Marketing communications budget
Limitations of the Marketing Mix Framework
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Marketing mix framework was particularly useful in the early days, when physical products represented a larger portion of the economy.
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Today, marketing is more integrated into organizations & wider variety of products & markets, some authors have attempted to extend its usefulness by proposing a fifth P, such as packaging, people, process, etc.
Marketing mix most commonly remains based on the 4 P's. Despite its limitations and perhaps because of its simplicity, the use of this framework remains strong and many marketing textbooks have been organized around it.
—Four Ps Vs Cs
The Four Ps is replaced by the Four Cs model, consisting of consumer, cost, convenience, and communication. The Four Cs model is more consumer-oriented and fits better in the movement from mass marketing to niche marketing. Cs Model provides a demand/customer centric version alternative to the well-known four Ps supply side model of marketing management.
4P's
- Product
- Price
- —Place
- Promotion
4C's
- Customer Solution
- Customer Cost
- Convenience
- Communication
—In the practice most of the companies considered marketing mix viz P’s in their marketing function for instance; Coca-Cola considered marketing mix as;
1.Product.
2.Price.
3.Promotion.
4.Place.
5.Potential.
6.Penetration, and
7.Profit.
Four Cs in 7Cs Compass Model
7Cs Compass Model is in a customer oriented Mktg Mix.
—(C1) Corporation (Competitor)
—(C2) Commodity
—(C3) Cost
— (C4) Communication
— (C5) Channel
—(C6)Consumer
—(C7) Circumstances
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Compass
—Consumer: N = Needs, W = Wants, S = Security, E = Education
—Circumstances: N = National and International, W=Weather, S = Social and Cultural, E = Economic
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7Cs Compass Model is customer oriented marketing mix.
—(C1) Corporation ( and competitor) is the core of 4Cs.
—1) It is necessary to place more emphases on the organization of the companies;
—2) It is necessary to execute marketing plans in conjunction with the company's objectives;
—3) It is necessary to tackle the internal communication related problems like corporate communication or corporate identity system(CIS), etc. In the market, there are the companies of the same business, the competitors.
— —At the time of economics downturn,
—companies or corporations (CI) produce the convenient (C2) “commodities” for the consumers with the consideration of the total marketing (C3) “cost” and gain their consents through the sufficient (C4) “communications” and then their confidences by selecting the effective (C5) “channels” in conjunction with the uncontrollable external circumstances. This is the way to survive in the period of low growth economics.
— —(C6) Consumers are those people encircling the companies. Instead of just the customers of 4P marketing model, they are the ordinary citizens nurtured by the motto of the consumerism. However of course they are also including the customers and the potential customers.
—(C7) Circumstances, besides the customers, there are also various uncontrollable external environmental factors encircling the companies.
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