Marketing Mix
Also known as: 4 P's
The marketing mix is the combination of tools that an organization can use to complete its marketing strategy. The use of each of these tools and their interaction with each other depends, among other things, on the objectives, the market, the target market and the competition.
Originally distinguishing four marketing tools, this number was later expanded to six in order to accommodate perceived shortcomings or to emphasize new insights. These include the following 6 p's:
Product
The first stands for product, sometimes called the product mix.
Price
Price is an important factor for both supplier and consumer and is generally determined by the relationship between supply and demand. It is also a very fast-changing factor in most product categories and therefore a widely used marketing mix tool.
To illustrate, if a soft drink is bought in the supermarket in the form of a 1.5-liter bottle or on a terrace in the form of an individual glass, then:
- product: bottle of cola, price: 1.27 for 5 glasses, promotion: none, location: supermarket
- product: glass of cola, price: 2.00 per glass, promotion: none, location: terrace
Location
The P of place includes both the location where the consumer obtains the product and the (type of) distribution channel. One can think of direct distribution directly from supplier to end-user (for example, insurance companies, outlet stores and Internet sales). In indirect distribution, there are a number of links between the manufacturer and the consumer, such as wholesalers and retailers.
Promotion
Promotion includes a company's communications aimed at boosting sales. Some activities that can be grouped under the promotional mix are:
Public relations (PR): the pursuit of good contacts with public groups, such as customers, competitors, suppliers and financiers.
Advertising: non-personal communication aimed at large groups of buyers, for example in the form of advertising leaflets, or radio and TV ads.
Personal selling: a very effective but usually expensive sales tool. Personal selling is done in interaction with the customer which allows any objections or prejudices to be addressed immediately. In addition, personal selling can create a bond of trust that reduces the customer's perception of risk.
Sales promotion: drawing attention to a price reduction (the price reduction itself falls under the P of price).
Cold calling: contacting random or selected individuals or companies directly by telephone.
Later, the marketing mix was expanded to include the following 2 Ps:
Staff
The quality of staff can be essential in the perception of the product offering. Not only are personnel essential as business cards, but also in the form of salespeople or (after sales) service personnel are a decisive factor in ultimate customer satisfaction.
Process
Of importance is the ability to map the process and how processes can be compared. The moment benchmarking is applied it is also possible to improve the process. The concept of iso-certification is an increasingly emerging phenomenon.
