Marketing Mix

Marketing Mix Paper

The marketing mix is probably the most famous phrase in marketing. According to Wikipedia.com, the marketing mix approach to marketing is a model of crafting and implementing marketing strategies. It stresses the "mixing" or blending of various factors in such a way that both organizational and consumer (target markets) objectives are attained (Wikipedia). "The elements are the marketing 'tactics'. Also known as the 'four Ps', the marketing mix elements are price, place, product, and promotion" (Marketing Teacher). In other words, "Marketing mix is a combination of marketing tools that are used to satisfy customers and company objectives. Consumers often call the marketing mix "the offering." By using variations of these four components a company has the ability to reach multiple consumers within the target market" (Lake, Developing).

The most common variables used in constructing a marketing mix are price, promotion, product and distribution (also called placement or often referred to as the four Ps). This was firs suggested by Jerome McCarthy, and indicated that marketers have essentially these four variables to use when crafting a marketing strategy and writing a marketing plan. In the long term, all four of the mix variables can be changed, but in the short term it is difficult to modify the product or the distribution channel. McCarthy's four P's focus on marketing from the perspective of the marketer. It basically describes what variables marketers have to work with and to ensure that each variable is also seen from a consumer's perspective. "This transformation is accomplished by converting Product into "customer solution", Price into "cost to the customer", Place into "convenience", and Promotion into "communication". He calls these the four C's" (Wikipedia) .

Creating a successful marketing mix that will increase results often takes experimenting and market research. There are many methods that can be used, both in person and the use of impersonal presentations. The key is to not always depend on "one" mix always explore other avenues. The combining and coordination of these elements will be more effective than depending on one. The concept is simple. For instance, another common mix is a cake mix. Normally, all cakes contain eggs, milk, flour and sugar, but you can always modify the cake by changing the mix elements. So for a sweeter cake add more sugar! This example also applies to the marketing mix. "The offer you make to you customer can be altered by varying the mix elements. So for a high profile brand increase the focus on promotion and desensitize the weight given to price. Another way to think about the marketing mix is to use the image of an artist's palette. The marketer mixes the prime colors (mix elements) in different quantities to deliver a particular final color. Every hand painted picture is original in some way, as is every marketing mix" (Marketing Teacher). This is why, some will increase the marketing mix to the 'five Ps' (instead of the four Ps) to include people.

The following are description of the elements of the marketing mix:

"Product:

A good product makes its marketing by itself because it gives benefits to the customer. Suppose now that the competitors products offer the same benefits, same quality, same price. You have then to differentiate your product with design, features, packaging, services, warranties, return and so on. In general, differentiation is mainly related to:

- The design: it can be a decisive advantage but it changes with fads.

- The packaging: It must provides a better appearance and a convenient use. In food business, products often differ only by packaging.

- The safety: It does not concern fun board but it matters very much for products used by kids.

- The "green": A friendly product to environment gets an advantage among some segments.

In business to business and for expensive items, the best mean of differentiation are warranties, return policy, maintenance service, time payments and financial and insurance services linked to the product.

Pricing:

Price means the pricing strategy you will use. You have already fixed, as an hypothesis a customer price fitted to your customer profile but you will have now to bargain it with the wholesalers and retailers.

In fact, you have to choose between three strategies:

- Competitive pricing: If your product is sold at the lowest price regarding all your competitors, you are practicing competitive pricing. Sometimes, competitive pricing is essential. For instance, when the products are basically the same, this strategy will usually succeed.

- Cost-plus-profit: It means that you add the profit you need to your cost. It is also called cost-orientated strategy and is mainly used by the big contractor of public works. The authority may have access to the costing data and should like to check if the profit added to the cost is not too high.

- Value pricing: It means that you base your prices on the value you deliver to customers. For example, when a new technology has a very large success, you can charge high prices to the customer. This practice is also called skimming. It is easy when you are in the introductory phase of the product life cycle.

Promotion:

The function of promotion is to affect the customer behavior in order to close a sale. Of course, it must be consistent with the buying process described in the consumer analysis. Promotion includes mainly three topics: advertisement, public relations, and sales promotions.

Reach is the percentage of the target market which is affected by your advertisement. For example,