Marketing Mix and How to Use It Effectively
The Big Idea behind the marketing mix is to put the right products in the right place considering both time and price. It acts as a very practical tool in promoting your business and the products or services you are offering.
Businesses for a long time have been using marketing tools to promote their brand, though the term “marketing mix” was first originated in the mid-20th century. By identifying and organizing the elements of the marketing mix, it allows a corporate to make profitable marketing decisions. These decisions help in:
- Improve the brand’s strengths and minimize its weaknesses
- Emerge as an adaptable and competitive business
- Enhance profitable collaboration between various segments and associations
By the 1950s, the elements of the marketing mix have experienced tremendous transformations in response to innovative technologies and the leading marketing practices.
The Four Ps of Marketing Mix
Since the 1960s, the marketing mix comprises of four Ps: Price, Product, Promotion, and Place.
Price refers to the cost required for purchasing a product. It primarily depends on the customers’ perceived value of the product that can significantly influence your marketing strategy.
A comparatively low price makes a product more appealing and accessible whereas products with relatively high prices only appeal to an exclusive set of customers. Either way, the price should be higher than the cost of production to acquire better profitable prospects.
- How consumers will use your product or services?
- Have you included all the important features?
- Are there any unnecessary features?
- What features meet the customers’ needs?
- How is your product differing from those offered by competitors?
It’s crucial to frequently evaluate the cost of your products and services to ensure you are following the right track with the realities of the marketplace. One important thing that businesses often forget about branding is the pricing that has a great impact on the consumers’ perception.
In certain industries, a low price makes an important element. On the contrary, a very low price may indicate inferior products or services in other industries. Subsequently, a thorough competitor analysis is essential. Moreover, make sure to be flexible on pricing. If you are finding any negative change in your marketing or sales, it’s time to reconsider the pricing solutions. Revise the costs if required to come up as the topmost competitor in a highly saturated market.
- What is the cost of product manufacturing?
- Whether a somewhat decrease in price can improve product positioning?
- What is the perceived value for the consumers?
- Is the current pricing can keep up with competitors?
It refers to direct marketing and advertising. Promotion includes TV commercials, billboards, digital advertisements, catalogs, trade fairs and much more. The category also includes public relations such as media relations and distribution of press releases. Promotion is all about what is being communicated, what is the message, how it will reach the audience and promotion after the campaign.
- Where consumers should look for in your products or services?
- Where your customers invest their time?
- Whether you need a better sales force?
- How your distribution strategy can compete on the market?
Lastly, one essential element in the traditional marketing mix is product placement.
This type of promotion comprises of various methods of communication you can use to promote your products or services. Even slight changes to your promotional strategy can introduce significant changes to your profits.
That way, you can write more marketing articles, modify the color contrasts, change the email subject lines and much more that can instantly lead to high sales. In most industries, both large and small companies can experiment with advertising and promotion.
- What is the best place to find your potential customers?
- How you can communicate with your potential buyers?
- What is the best time to promote your products or services?
- Should you go for cross-communication solutions?
- What promotional strategies your competitors follow?
The Seven Ps of the Marketing Mix
At times, the four Ps are expanded to seven Ps. In addition to the four Ps, you may also want to go for the other three.
It refers to anything tangible related to your products or the physical environment where you are promoting your services. In addition, it includes delivery receipts, product packaging or the layout of your brand.
Employees are the ones who directly communicate with your customers, staff recruitment and training. The category mainly includes how efficient your employees perform their jobs, how they communicate to your customers, and how customers feel about their experience.
Anything in the business environment that can influence how your product or service is managed by employees and delivered to customers. For instance, the list of tasks that employees must perform, the number of queries received and responded, and how performance is measured. Also, it highlights the areas where customization can be performed.
What Is a Digital Marketing Mix?
A digital marketing mix is how a corporate achieve its marketing objectives using digital technologies. With increasing online business, digital marketing tools have a significant value. Though the process is similar to the traditional marketing mix, these elements are used considering the internet influence concerning digital technologies and consumer behavior.
It includes the requirements of the customers. The primary approach is to focus on solving problems for customers instead of creating more products. The strategy evaluates consumers’ behavior and needs in addition to communicating with potential customers.
It includes the total cost of product or service. Cost involves the time required to research a product and make a purchase. Also, it includes the cost of trade-offs such as preceding another purchase or the cost they experience for purchasing or not purchasing a product.
How easy or challenging it is for customers to find and buy a product. The rise of internet marketing and online purchase has made it more convenient for consumers to buy their favorite products right on time.
It refers to the dialogue that depends on both seller and consumer. It includes media presence, marketing, and advertising. Speaking of the digital world, it comprises of blog posts, sponsored product placement, social media appearance, brand ambassadors, etc.
How to Identify Your Marketing Mix?
To establish a strong customer base and boost sales, the foremost thing businesses should do is to identify its marketing mix. The very first step in this process is to figure out your target customers. As soon as you are familiar with your potential customers, you can have a better overview of your relationship with your business.
- What issues does your target consumers have?
- How do your products or services can meet their needs?
- What opinion your target customers have about your competitors?
- What factors can encourage your target audience to buy your products or services?
Subsequently, determine the objectives for sales and growth in addition to the marketing finance. Afterward, choose a marketing strategy that can help you reach your target audience and accomplish the ultimate goal. For instance, you need 25 leads to sell one product and you are looking forward to selling 1,000 products per month.
Then you will need 25,000 new leads. For this, you may want to outreach two different websites including one with million visitors and the other with 25,000 visitors. That way, you can manage your marketing budget to gain targeted consumers. By working on these elements, you can create a strategy that efficiently reaches customers and grow your business.
Advantages of Marketing Mix Models
Whether you would prefer 7 Ps and 4 Cs or a combination of both, determining the appropriate marketing mix is about considering the right choices when it comes to promotion and branding. A good marketing mix can provide you with a better foundation from which the marketing plan and business solution can align with your specific goals.
1- Assist in product development
When designing the marketing mix, you can have a comprehensive understanding of the pricing tactics, product placement, processes and promotion involved in developing products. Every time you want to design a new product, you will have already existing guidelines to help you with your decision.
2- Create value
Marketing mix can help in building a better customer base and sell value to consumers. Eventually, your customers will buy what they consider will provide them the best value for their money. By executing innovative marketing campaigns, it allows you to present your exclusive products at relatively low prices to boost your brand progress.
3- Communicate your message
By using the right marketing mix in your business promotional strategies, you can communicate the right message to your audience in the right place and at the right time. The better you understand your business objectives and customers through the right evaluation of the marketing mix, you can easily figure out which messages and format can influence your target market. Appropriate media, timing, and emotions can impact your business bottom line.
4- Boost differentiation
Analyze the marketing mix to benefit your branding strategy that involves the evaluation of your competitors. Once you know how other businesses are delivering their products or services, you can differentiate yourself by devising a better promotional strategy. That way, you can gain a competitive advantage by improving your marketing tactics.
5- Improve your business
Physical evidence makes an important element in the marketing mix. If you look forward to giving your business a real presence in the industry and build enhanced customer loyalty, you will have a lot to succeed. The marketing mix can pinpoint various ideas that you need to improve and get ahead of the competition.
Today’s customers are more empowered than ever before. They have more expectations from brands to meet their specific requirements. The marketing mix is an effective approach to break down what’s needed for business progress.
It’s a unique collection of resources, marketing tools and understandings to satisfy your business objectives. Success is attributed to the in-depth insights used in every step. Businesses can deliver that the customers truly want and present how their products or services can enrich their lives.