Concept of Marketing Mix
Marketing is the process of identifying, anticipating, and satisfying customers’ requirements with
the purpose of making profits. This process involves the marketing managers and representatives
take various marketing decisions to make the operations profitable. They are required to identify
suitable combination of marketing policies and procedures so as to adopt and bring about desired
behaviour of trade and consumers at minimum cost. They have to decide how elements of
marketing, advertising, personal selling, pricing, packaging, channels, warehousing etc. be
combined to make marketing operations profitable. More specifically, they have to decide a
marketing mix – a decision making method in relation with the product, price, promotion, and
distribution.
The term Marketing Mix was introduced by Neil H. Borden in his article – “The Concept of
Marketing Mix”. In this study he described the business executive as a “decider,” an “artist” – a
“mixer of ingredients,” who sometimes follows a recipe prepared by others or prepares his own
recipe or adapts a recipe to the ingredients immediately available, and sometimes experiments
with or invents ingredients no one else has tried.
Definitions of Marketing Mix
According to Philip Kotler, “ Marketing mix is the combination of four elements called the 4P’sProduct, Price, Promotion and Place that every company has the option of adding, subtracting or
modifying in order to create a desired marketing strategy”.
According to Kotler and Armstrong, “Marketing mix is the set of tactical marketing tools that the
firm blends to produce the response it wants in the target market”.
According to W. J. Stanton, “Marketing mix is the term used to describe the combination of the
four inputs which constitute the core of a company’s marketing system: the product, the price
structure, the promotional activities and the distribution system”
CHARACTERISTICS OF MARKETING MIX:
1. Marketing mix is the core of marketing process:
Marketing mix involves important decisions relating to each element of the mix. The impact of
the mix is best when proper weightage is allotted to each element and they are combined for
attaining best results.
2. Marketing mix has to be reviewed constantly in order to meet the changing
requirements:
The marketing manager has to constantly review the mix and the market scenario and make
necessary changes in the marketing mix according to changes in the conditions and complexity
of the market.
3. Changes in external environment facilitate alterations in the mix:
Changes keep on taking place in the external environment. For many industries, the customer is
the most fluctuating variable of environment. Customers’ tastes and preferences change very
fast. Brand loyalty and purchasing power also change over a period. The marketing manager has
to carry out market analysis constantly to make necessary changes in the marketing mix.
4. Changes taking place within the firm also necessitate changes in marketing mix:
Changes within the firm may take place due to technology or product line or in the size and scale
of operation. All such changes call for corresponding changes in the marketing mix.
5. Applicable to business and non-business organization:
Marketing mix is applicable not only to business organizations but also to non-business
organizations, such as clubs and educational institutions. For example, an educational institution
is expected to provide the right course (product), charge the right fee (price), promote the
institution and the courses, and provide the course at the right place.
6. Helps to achieve organizational goals:
An application of an appropriate marketing mix helps to achieve organizational goals like
increased profits and market share.
7. Concentrates on customers:
A clear focus point of marketing mix is the customer, and the marketing mix is expected to
provide maximum customer satisfaction
FEATURES OF MARKETING MIX
1. Interdependent variables
The marketing mix is made up of four unique variables product, price, place and promotion.
These four variables are interdependent and need to be aligned.
2. Help Achieve Marketing Targets
The company aims to achieve its marketing targets such as sales, profits, customer retention and
satisfaction through the use of these variables.
3. Flexible Concept
The marketing mix is a dynamic concept and the focus on any one variable may be either
increased or decreased on the basis of existing marketing conditions and customer requirements.
4. Constant Monitoring
It is necessary to keep continuous watch on the changing trends and requirements, within the
company as well as in the market to ensure that the marketing mix elements stay relevant and
useful.
5. Customer as a focal point
The customer is the focal point of all marketing activity. The value of the product is determined
by customer perception and the goal is to achieve a satisfied and loyal customer.
DEVELOPING A MARKETING MIX
Intuition and creative thinking are key requirements for a marketing manager. But relying only
on these qualities is incorrect and can lead to inaccurate assumptions that may not provide the
desired results. To ensure that marketing mix is based on research and combines facts with
innovation, a manager should go through the following process:
Step 1
The first step on the marketing manager’s list is to define the unique feature, the product offers,
the customer surveys or focus groups and identify the importance of unique feature to consumers
and whether they can increase the sales of the product.
Step 2
The second step is to understand the consumer that would purchase the product, what they need,
what value they associate. All the other elements of the marketing mix will be designed in
accordance with the customer. This understanding will enable the product offered be relevant
and targeted.
Step 3
The next step is to understand the competition. The prices and related benefits such as discounts,
warranties and special offers need to be assessed. An understanding of the subjective value of the
product and a comparison with its actual manufacturing distribution cost will help set an ideal
price point.
Step 4
At this point the marketing manager needs to evaluate the options of place to understand where
the customer is most likely to make a purchase and the costs associated with using this channel.
Multiple channels may help target a wider customer base and ensure easy access. A product
which serves a niche market would concentrate distribution to a specific area or channel; hence
value of the product is closely related with availability of the product.
Step 5
Based on the target audience and the price identified the communication strategy can be
developed. The promotional methods need to appeal to the customers and ensure that the key
features and benefits of the product are clearly communicated and understood.
Step 6
A last step needs to be taken at this point to see how all the elements identified and planned
relate to each other. All marketing mix variables are interdependent and rely on each other for a
strong strategy. It has to be seen whether the selling channels strengthen the perceived value of
the product or the promotional material supports the selected distribution channels.
The marketing plan is finalized after ensuring that all four elements are in harmony and there are
no conflicting messages, either direct indirect.
IMPORTANCE OF MARKETING MIX
Marketing Approach
It contributes towards the formation of an effective marketing strategy and its practical
implementation. Integrates the essentials of effective marketing, marketing and allows to analyse
and asses the feasibility and role of the product or service that the organization offers. Identifies
appropriate distribution channel for the proper placement of the product, sets a suitable price for
the value that is offered to the consumers and identifies and employs suitable promotional media.
It provides the organization with an all-inclusive and holistic marketing approach and gives
direction.
Value Creation
Marketing mix guides in identifying and assessing the diverse aspects of the products or services
in relation to their importance and utility to customers and their preferences. Furthermore, it also
provides direction for the selection of a suitable distribution channel, where the target consumer
is more likely to look around for offered services or products. The platform may range from
being a retail store to an online shop.
Marketing mix also includes directives for the allocation of a suitable price, which confers with
priorities and limitations of the target consumers. It helps to promote and advertise the products
and services effectively, so as to effectively deliver value to consumers.