Please define marketing mix. What is its importance for business?

Simply put, the company should puts the right product, at the right place, at the right price, at the right time. Product means understanding what the customers want; this includes understanding how our product differentiates from its competitors. For example, the company might develop a car that has higher fuel efficiency. Second, place defines the best channel to market this product, for instance through stores, telemarketing and online. Third, it is important the business understand what is the highest price customers are willing to pay for the product while still perceiving it’s a good value. If the price is too high, the number of people who are willing to pay the price might be too low for the business to be profitable. Finally, promotion identifies where and when the product should be sold. For example, a car with high fuel efficiency will likely have the strongest potential to generate high sales in a country with high cost of fuel.

Specific marketing mix will have an impact on the business strategy and its profitability. However, it is often very difficult to understand what people want, where they will buy it and what they are willing to pay for it. Market research can help to identify the right mix for a specific product. For example, a high quality, innovative car will have a higher price than a car produced for the mass market. Equally, the high quality, expensive car will probably require a well-trained sales force to show the product to potential clients.