Explain the Marketing Mix

The Marketing Mix is a set of marketing tools utilised by businesses to fully comprehend what their products or services can bring to the market, whilst also enabling them to develop a successful strategy to distribute these products to their target audience. The Marketing Mix is comprised of the following four elements (otherwise known as the four P’s) - Product, Price, Place and Promotion.

Product

The product refers to a tangible product (or an intangible service) produced and provided in response to customer need and demand. The product must, at the bare minimum, meet the needs of the target market the business wishes to reach, and the business must have a clear vision of how their product will fulfil these needs. Other product features include the product name, product description (a product must be fit for purpose and as described), product safety mechanisms (not suitable for children under the age of 18 months), a Unique Selling Point (USP) to differentiate from rival competitors (i.e. glow in the dark vs standard sneakers) and an associated product brand (i.e. logo, guaranteed quality and brand loyalty.)

Price

The price refers to the cost which a buyer is willing to pay for a good or service. Put in other words, the price is a reflection of the value of the product/ service to the consumer. Factors considered when determining the price of a good or service includes the costs of production/competitor pricing.  A business may employ numerous pricing strategies when determining which price to charge such as but not limited to premium pricing (i.e. charging a premium price for a product of guaranteed quality i.e. Chanel, Dior- targets a very niche audience), discriminatory pricing (i.e. charging various groups alternate prices i.e. student discounts at retailers) and introductory pricing. (i.e. introducing customers to a new product or service by encouraging purchases at an initially discounted rate)

Place

The place in the marketing mix refers to where customers will be able to receive access to the product or service of the business. i.e. which channel of distribution the business will use to distribute and sell their products.

Channels of distribution range from:

1. Manufacturer to the Consumer (Custom Made Car associated with a premium price point)

2. Manufacturer Wholesaler- Consumer (Small retailer stock purchases- bulk buying)

3. Manufacturer Wholesaler- Retailer- Consumer (Most common format of product distribution- Tesco’s/ Sainsbury’s Shopping Experience)

Factors to consider when selecting a channel of distribution include location, speed, cost and reliability.

Promotion

Promotion (or the “Promotional Mix”) is the final P of the Marketing Mix. The Promotional Mix can be subdivided under the following headings:

1. Advertising- Advertising is arguably one of the most important elements of the promotional mix. Advertising refers to “one way” impersonal means of communication a business uses in order to raise and retain awareness of their product or services within their market. Business advertising must be appropriate to the market segment the business aims to target. (i.e. don’t advertise children’s’ candy in a Health and Wellness Lifestyle magazine) Advertising can take the form of Television, Magazine, Billboard, Newspaper, Radio and most increasingly- Social Media.

2. Public Relations- Public relations is used to build a positive image and reputation for a product or service within the eyes of the public to encourage brand loyalty and drive sales figures whilst promoting the overall goals of the company. Effective public relations may be achieved by the business by engaging with their customers at a number of levels through the hosting of press conferences or the sponsoring of local events. (i.e. Rugby Games)

3. Sales Promotions- Sales promotions refer to the means through which a business encourages customers to engage with and purchase their products/ services. Most promotions are designed to inspire interest in the short term and are often scheduled during peak sales periods such as Christmas or during the launch stage of a new product. Sales Promotions are achieved through methods such as visual merchandising (displaying the products in an aesthetically pleasing manner), short-term sales promotions (2 for the cost of 1) or product sampling ( enabling consumers to engage with the product or service before making a final commitment- often used with food).