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Understanding the Marketing Mix: Product, Price and Promotion

  • Jatin 
Marketing Mix

Marketing can seem like a complicated thing, especially when you’re just starting out. The principles of marketing, however, aren’t that hard to understand. In this blog post I’m going to break down the 4 Ps of Marketing (Product, Price, Place and Promotion) so that you have a better understanding of how they work together and are able to apply them in your own marketing strategy.

Meet your 4 Ps of Marketing

The Marketing Mix is a term used to describe the combination of tactics used by a business to achieve its objectives by marketing its products or services effectively to the customer. The 4 Ps make up a typical marketing mix – Price, Product, Promotion and Place. However, nowadays, the marketing mix increasingly includes several other Ps like Packaging, Positioning, People and even Politics as vital mix elements. This article discusses in detail about the product element of the marketing mix.

Product is the key element

Product is one of the most important elements of the marketing mix definition. The term ‘product’ means more than just tangible goods. It also includes services, experiences, events and persons. For example:

A company may be selling cars (tangible good). Along with that it is also selling after-sales service (service), warranties (promise), reliability (experience), driving pleasure (experience) etc. A hotel may be selling rooms (tangible good), but along with that it may be selling relaxation (experience), events such as parties or conferences (event).

Companies are increasingly realizing that they are not simply in the business of making and selling things but they are actually in the business of creating experiences for customers. A product has five characteristics which determine its success – Quality, Variety

Learn more about your pricing options

If you’ve ever been to a grocery store and wondered why the same item will be priced differently at different stores, or why two identical items will have such different prices, then you’ve thought about pricing in marketing.

While pricing is simply the amount of money charged for a product or service, pricing strategy is much more complicated than that. When we talk about marketing mix, or the 4 Ps (Product, Place/Distribution, Promotion and Price) of marketing, price is considered one of the most important elements. In some cases it can be the only element that generates revenue. Other elements may contribute to your success as a marketer, but if you don’t get your price right, nothing else will matter.

It’s important for marketers to understand how pricing affects other components of the marketing mix. But first let’s look at what factors might influence the price of a product.

A company needs to consider many factors when developing its pricing strategy:

  • The cost of producing their product
  • The profit they want to earn
  • Their competitors’ prices for similar products
  • Consumers’ perceptions about their brand and willingness to pay for it

Understand the importance of place

Place refers to where the product or service is offered or sold. It includes the distribution channels and intermediaries that get the product from production to the consumers. In order for a product to be successful, it must be in the right place at the right time, and there are a variety of ways to make that happen.

The most common way, especially for large corporations, is through advertising. Advertisements can be broadcast through television, radio, magazines, newspapers, flyers and posters. They can also be viewed online through websites and on social media networks like Facebook or Twitter. Another way of getting your product out there is through trade shows and conferences. These are often attended by business professionals who are looking for new products to offer their clients.

A marketing representative at a trade show might survey potential customers about their needs and concerns, which could lead to changes in how you promote your product or service in order to better meet those needs.

Promote your product

Promotion is also referred to as marketing communications, and is the means by which firms attempt to inform, persuade, and remind consumers—directly or indirectly—about the products and brands that they sell. The aim of promotion is to increase awareness, create interest, generate sales or create brand loyalty. It is one of the basic elements of the market mix, which includes the four Ps: product price place (distribution), and promotion.

Promotion includes advertising, sales promotion, public relations (PR), direct marketing, personal selling and sponsorship. Each element contributes in a different way to the overall promotional mix.

Marketing mix sum up

The marketing mix is not a set of tools or strategies, but a consistent way to think about how you do business. As such, you should always be thinking about your strategy in terms of the 4 Ps as much as possible. It can be difficult to keep this at the forefront of your mind all the time, but it is well worth the trouble. You will be better able to assess and adapt to changing situations in business once you have a solid grasp on what the 4 Ps are and how they relate to one another.

Image source: freepik.com

References:

  • https://www.123helpme.com/essay/Marketing-Mix-166244
  • https://economictimes.indiatimes.com/definition/marketing-mix
  • https://artsandculture.google.com/entity/promotion/m05t5gr?hl=en
  • https://www.optimizemybrand.com/2014/01/06/todays-marketing-mix