In the following article we want to teach you one of the basic concepts of marketing: Marketing mix or marketing mix. This is an introductory topic to the marketing area, but essential for creating an effective marketing strategy.
The business world is constantly evolving and so are its functional areas, including marketing. Day by day, companies need to innovate if they want to keep their competitive advantage and to achieve this it is necessary to develop strategies using the different components of the marketing mix.
What is the marketing mix?
The term “Marketing mix” had its beginnings in 1949 thanks to Neil Borden, a professor of advertising at Harvard. Borden affirmed that a manager must analyze the behavior of the market and through a mixture of marketing elements use all the resources at his disposal in order to deploy a successful strategy. But what are these elements?
Also read: How to do a market study (Primary and secondary research)
The 4 P’s of marketing.
In 1960, E. Jerome McCarthy defined the market elements mentioned by Borden years ago, establishing the 4 P’s of marketing:
- Price.
- Product.
- Square.
- Promotion.
McCarthy established these four variables as essential for the generation of market strategies and until now they are widely used. Business schools teach this concept in basic marketing classes, which are the foundation of the marketing mix.
The 7 P’s of marketing.
The most recent contribution to this concept was published in 1981 by Bernard Booms and Mary Bitner, who created the model of the 7 P’s of marketing. In this case, the original 4 P’s are included plus the variables people, processes and physical evidence or physical evidencesince these concepts were developed in English.
In recent years there has been talk of an eighth P Productivity & Quality. However, it has not been officially included in the concept of the marketing mix.
To conclude with this definition, the marketing mix is the use or mixture of the different marketing variables (product, price, place, promotion, people, processes and physical evidence) to achieve putting the right product in the right place; at the right price; at the right time.
The marketing mix is a good place to start when planning to bring a product to market. Pay close attention below as we will define each of the marketing mix variables.
Marketing Mix Variables.
Product.
The product is an item that can be tangible or intangible and that has been created to satisfy a need or desire of a specific group of people. The product must conform to what consumers want, it must be what your target wants to obtain. To achieve this, you need to answer the following questions:
- What want or need does my product satisfy?
- What characteristics must the product have to meet the needs of the consumer? Is there a feature you missed?
- What color, size and name will the product have?
- How is it different from the competition?
Price.
The price of the product is basically the amount of money that a customer is willing to pay to acquire it. The price is not only important to define the marketing strategy, it is also key to determine the company’s income. For this reason it is one of the most important variables.
A very high price can drive customers away even if you offer an excellent product. Likewise, a very low price could also be interpreted as poor quality.
If you are just starting out, it is likely that your customers are not willing to pay a high price, so your pricing strategy must be consistent with the knowledge and trust that customers have of your brand.
Adjusting the price of the product has a great impact on the entire marketing strategy, as well as greatly affecting the sales and demand for the product. To achieve this, you need to answer the following questions:
- How much does it cost to produce a unit of product?
- Can my price compete with the prices of the competition?
- What is the value that the customer perceives of the product?
- How sensitive is my target to price changes?
- What discount levels can I offer to increase sales?
Place or distribution.
This variable focuses on the facility that the company has to distribute its product. As a result, this allows customers to purchase it more quickly.
That is, your product must be strategically located to be efficiently distributed to your target market. This requires a great knowledge of the different distribution channels available and the sales processes; whether direct in store or online. For this you must answer the following questions:
- Where do your customers look for your products?
- How can I access the appropriate distribution channels?
- What is the place or distribution strategy used by the competition?
Depending on your product, it is likely that you need a sales group, distribute catalogs, attend fairs and of course improve your presence on the Internet.
Promotion.
Promotion is the ability of the company to promote its brand. They are all the different communication methods that exist to make your products known and generate a positive image in front of the consumer.
Advertising, public relations, sales promotion, personal selling, radio, television, sponsorships and, in more recent times, social networks are the most important communication tools in an organization. To create a good promotion strategy you must answer the following questions:
- How can I communicate with my potential customers?
- According to my target, should I promote on radio, television, press or social networks… or on all of them?
- What is the best time to promote my product?
- What is the competition promotion strategy?
People.
A company not only depends on its customers, it also works thanks to the work of its employees. From salespeople to management positions, a company’s people are essential to its proper functioning. For this reason, it is essential to hire and train people who can design and execute the appropriate strategies for the success of the company.
Your ability to select, recruit, hire and retain people with the skills you need; is more important than everything else. You must develop the habit of thinking in terms of exactly who is going to carry out each task and responsibility. For this you must answer the following questions:
- What positions or positions does my company need to function?
- What skills do people need to fill those positions?
- Do these people have the values and personality that fit the company’s organizational culture?
processes.
Each and every one of the processes of the organization directly affect its results. Not only the speed to produce a good or service until it reaches the customer, but they are also keys to reducing costs.
From this point of view, this variable focuses on improving processes and making adjustments that minimize costs and of course maximize profits.
On the other hand, processes can affect the customer experience and therefore their levels of satisfaction. These processes can be:
- Waiting time in store.
- Purchase process on the website.
- Delivery times of the products.
- Communication with customer service.
- Returns and after-sales service.
Physical evidence or physical evidence.
They are all those things outside the product that generate extra value in the eyes of customers. For example, a watch or glasses are sold with their own case or box. These extra goods are physical evidence of the product and improve its image in front of the consumer. Even purchase receipts and emails thanking you for the purchase are part of this element of the marketing mix.
Additionally, this reinforces the credibility of the product and the company that sells it. These components must exhibit the qualities that customers are looking for, in accordance with industry standards.
Simply put, “physical evidence” is about ensuring that each component involved with the product adheres to brand values and maximizes its value. This creates a consistent and compelling customer experience.
Conclusion.
Despite the fact that it is a tool from 70 years ago, the marketing mix is still valid today and its applicability is vital in any Marketing process. The use of this tool is of great importance for brand positioning and product launching.
Do not forget that each element must be analyzed regularly, since the strategies must adapt to the constant changes of the market. We hope this information will help you for all your endeavors 🙂
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