MEANING OF MARKETING MIX
“Marketing mix” is a general phrase used to describe the different kinds of choices organisations have to make in the whole process of bringing a product or service to market. Marketing mix is often synonymous with the four Ps: price, product, promotion and place.
It simply means putting the right product in the right place, at the right price, at the right time.
To create the right marketing mix, businesses have to meet the following conditions:
1. The product has to have the right features. For example, it must look good and work well.
2. The price must be right. Consumer will need to buy in large numbers to produce a healthy profit.
3. The goods must be in the right place at the right time. Making sure that the goods arrive when and where they are wanted is an important operation.
4. The target group needs to be made aware of the existence and availability of the product through promotion. Successful promotion helps a firm to spread costs over a larger output.
FOUR PS OF MARKETING
The major marketing management decisions can be classified in one of the following four categories:
3. Place (distribution)
These variables are known as the 4 P’s of marketing. They are the variables that marketing managers can control in order to best satisfy customers in the target market.
1. Product: As the product is the item being sold to the customer, the thing that will bring in money, its features and design need careful consideration. Whether the firm is manufacturing the product or purchasing the product for resale, they need to determine what product features will appeal to their target market.
The product is the central point on which marketing energy must focus. Finding out how to make the product, setting up the production line, providing the finance and manufacturing the product are not the responsibility of the marketing function. However, it is concerned with what the product means to the customer.
Marketing therefore plays a key role in determining such aspects as:
1. The appearance of the product-line with the requirements of the market.
2. The function of the product-products must address the needs of customers as identified through market research.
2. The price: The price is the amount a customer pays for the product. The price Vis very important as it determines the company’s profit and hence, survival. Adjusting the price has a profound impact on the marketing strategy, and depending on the price elasticity of the product, often it will affect the demand and sales as well. The marketer should set a price that complements the other elements of the marketing mix.
When setting a price, the marketer must be aware of the customer’s perceived value for the product. Three basic pricing strategies are: market skimming pricing, market penetration pricing and to neutral pricing. The ‘reference value’ (where the consumer refers to the prices of competing products) and the ‘differential value’ (the consumer’s view of this product’s attributes versus the attributes of other products) must be taken into account.
3. The place: ‘Place’ is concemed with various methods of transporting and storing goods, and then making them available for the customer. Getting the right product to the right place at the right time involves the distribution system. The choice of distribution method will depend on a variety of circumstances. It may be more convenient for some manufacturers to sell to wholesalers who then sell to retailers, while others will prefer to sell directly to retailers or customers.
4. Promotion: Promotion is the business of communicating with customers. It will provide information that will assist them in making a decision to purchase a product or service. Promotion comprises elements such as: advertising, public relations, personal selling and sales promotion.
Advertising covers any communication that is paid for, from cinema commercials, radio and Internet advertisements through print media and billboards. Public relations is where the communication is not directly paid for and this includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged create word of mouth momentum. Sales staff often plays an important role in word of mouth and public relations.
List of Marketing Mix
(i) Product: Product refers to anything that can be offered to a market for attention. acquisition, use or consumption that would satisfy consumer wants and needs. OR Product is something that is capable of over of satisfying consumers’ needs or wants. OR Products can be tangible or intan gible offering by a company that satis fies consumers’ needs and wants.
(ii) Price: This is the amount of money paid by a customer to obtain a product OR Price is the value assigned/tagged to a product by the seller.
(iii) Place: This is otherwise known as dis tribution. It is the company’s activities that make the product available to target cus tomers. It takes the form of channels, storage, coverage, transportation and lo gistics available to the company.
(iv) Promotion: These are various activities that communicate the merits of a product and service by persuading customers to buy the product. It is in a form of adver tising, personal selling, sales promotion, public relations and publicity.
The marketing environment is a term that is used i to collectively identify all the elements that have some impact on the actual performance of a C market. This includes events and factors that occur within the context of the market itself and also any elements that are based outside the market. The idea behind defining the market environment is to understand what forces are exerting some amount of influence in the C marketplace and understand why and how a market reacts to those forces in certain ways.
The environments in which you will have to market your new product are a major factor in determining your strategy. In a real-life marketing ( plan you would spend a solid amount of time researching these environments.
The marketing environment is everything an organisation must take into consideration when developing and presenting a new product.
MEANING OF MARKETING MIX