Selling a product or service was easy back then. But now in this cutthroat completion, it has become much harder, and selling products and making customers satisfied goes a long way. Back then you could sell what you make but today you must consider making products only you can sell. Here, we will discuss the most effective marketing strategy which is called the marketing mix. Let’s understand…
What is Marketing Mix?
A marketing mix is a set of actions and tactics a company uses to market products, sell, make customers satisfied, and achieve the company’s marketing objectives. It is deliberate marketing strategy firms apply to realize the desired marketing goals.
It includes studying the market, understanding competitors, the needs & wants of customers, and coming up with a strategy to make the right product/service and deliver it to the right customer at the right price at the right place.
Traditionally the marketing mix is known as the combination of the 4 Ps i.e. product, price, place, and promotion. Later, the 3 Ps i.e. people, process, and physical environment are added to the original 4 Ps. Similarly, again the 4 Cs are added to it.
Let’s understand what are these 4 Ps, 3 Ps, and 4 Cs of the marketing mix and why they are important for successful marketing.
The 4 Ps of Marketing Mix
It was E. Jerome McCarthy who developed the marketing mix strategy in 1960. McCarthy included in his marketing strategy the 4 Ps – product, price, place, and promotion. It is mainly focused on selling physical goods. These 4 Ps are mainly used in the manufacturing industry.
A product is what a company offers to people that have the quality to satisfy their needs and wants. The product may be tangible (book, food, car, and so on) and intangible i.e. service (counseling, teaching, airlines, and so on).
For successful marketing, making the right product is essential. Thus, it is important that you should manufacture products by understanding what and how competitors are selling and what is demanded from customers.
The right product is the very first step in getting the most from the marketing mix. And, you should be up-to-date and make improvements in products when needed.
Price is the cost customers must pay in order to buy or consume your products. Price is the main factor that helps to determine how much profit your business will generate.
While setting the price of the product consider how much it costs during the production, how much the competitors are charging, and whether will customers pay that price. The price should be reasonable and provide value to the customers.
Promotion is about making aware customers of your products. This includes just informing customers to aggressively promote the product.
Best promotions include explaining the product benefits to customers and convincing them in a positive way about the product. Its strategy includes advertising, sales promotion, direct selling, public relation, etc.
The place is where you put your products and expect customers to come there to purchase. The place should be accessible to customers.
The heart of the place component of the marketing mix is distribution. Wherever the place is, it should be easily reachable to customers. In addition to this, the place should be recognizable to them.
The 7 Ps of Marketing Mix
The previously explained 4 Ps are only focused on the physical goods it does not consider the service aspects. Due to the inability of the 4 Ps of marketing to fit in service industries, the additional 3 Ps are added to it.
These additional 3 Ps are mainly used in the service sector. Chief marketers Booms & Bitner are behind these 3 extra Ps who included them on 4 Ps in 1981 by Booms & Bitner making the 7 Ps of marketing.
The first element of service marketing is people, which comprises both consumers and employees who are directly and indirectly tied to the product.
You and your employees should be customers focused, they should be able to understand the customers, and offer them suitable ways to create value.
Building and providing a high-quality service to your consumer depends heavily on systems and processes. To cut down on extra costs related to providing the finest service, make sure your process is clear of jams and barriers.
This element emphasizes that your business office looks as well as offering looks also play an important role in customer satisfaction. As such, make the environment of your office clean where your service is being sold.
In addition, make sure the packaging of your products is clean and attractive. And, the production be relevant to the values and benefits it intends to offer.
The 4 Cs of Marketing Mix
The 4 Cs of marketing are customer, cost, convenience, and communication. So far we explained 4 ps and 3 ps we understood that marketing has shifted its focus from business to customer.
Today, companies have become more customer-centric which is why 4 Cs have become more effective nowadays. Especially, in digital marketing since the 1990s the 4 Cs have taken over the four Ps.
The customer should be the center of all our marketing strategies. Companies’ goal should be fulfilling customers’ needs, demands, and wants, and achieving customer value and satisfaction.
The “4Cs of marketing” model expands on this idea to discuss cost, whereas the 4Ps approach concentrated on price.
Only a small portion of the actual cost of a product is reflected in the price the client pays. Consider the steps necessary for the customer to obtain the product, such as the travel time to the point of sale (if that is a factor).
Another crucial factor for purchase decisions is convenience. Businesses must offer user-friendly selection, price, shipping, and other policies to comfort customers.
The 4Cs of marketing put a lot of emphasis on communication, which covers all of the interactions that customers have with brands. Instead of trying to persuade the public of a product’s advantages, the emphasis is now on giving potential buyers something valuable.
How To Develop A Marketing Mix Strategy?
Every business is unique so its marketing objective will also vary. Developing a good marketing strategy is a blend of art and science. Following the given steps you can make your very own marketing mix strategy.
Study Your Competitors
It makes sense to research your competition before developing your marketing approach. Think about what they are doing well and what they could improve on.
Note the aspects of their strategy that you find appealing and highlight any places where you feel your own strategy may be improved. By using this, you may construct your marketing plan more quickly, more cheaply, and without having to invent the wheel.
Define Your Ideal Customer
Companies today have a clear understanding of their target audience and develop personas to tailor their content to them. To promote your company successfully, you must determine who needs your product or service and what attracts them.
Set a Goal
After recognizing your target customer, it is time to set a specific goal. Your goal should be SMART i.e. specific, measurable, attainable, realistic, and time-bound. The desired goal will be your base for measuring performance and whether or not your marketing effort has impacted the target.
Define Your Budget
It is time to set the budget for your marketing strategy. Make sure the budget is relevant to your marketing goals and customers’ needs & wants.
You can either focus on the media that is performing the best or distribute your spending equally among many platforms, adjusting as necessary. It’s important to be adaptable and change your plan as you gather more information.
Launch The Product (Plan)
Once you have been all set on your target audience, plans, and budgeting activities it is time to implement the plan or launch the product in the market. This is the phase your marketing strategy is out into actual operation.
An ongoing assessment of your marketing strategy is necessary. Make sure you clearly defined all of your employee’s roles on this and that the products are reaching the target audience.
Review the Results
The marketing mix is an ongoing process. You must review the performance of your marketing strategy and test it with the goals you set in the 3rd step. It is a must to do tests, modifications, and a review of the progress as time passes.
The result must be assessed properly and necessary actions must be taken to adapt to the changes brought by the market. In this way, this will help your company for long run survival, success, and profitability.
Why Marketing Mix Is Important?
Now the marketing mix has become a basic tool every marketer, business, and company must use in order to achieve their marketing goals as effectively and efficiently as possible.
For attracting customers to retain them, every marketer must concentrate on at least the significant components of it. There are several benefits the marketing mix can provide to your business, some are mentioned below:
- It helps to understand the target market.
- Helps you to develop the right marketing strategy and program.
- Helps to increase customer satisfaction and retention.
- This will increase the success rate of your business as it is focused on serving the target audience better than others do.
- Helps to be proactive in taking risks and exploiting opportunities.
- Helps to understand the competitors.
- Helps to generate sustainable profits and growth.
The marketing mix is what your business needs to thrive in today’s competitive market. Make sure you clearly understand every component of it and use them in the best possible manner.