Skip to main content

MARKETING MIX

Definition of 'Marketing Mix'


Definition: The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. The 4Ps 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.

Description: What are the 4Ps of marketing?

Price: refers to the value that is put for a product. It depends on costs of production, segment targeted, ability of the market to pay, supply - demand and a host of other direct and indirect factors. There can be several types of pricing strategies, each tied in with an overall business plan. Pricing can also be used a demarcation, to differentiate and enhance the image of a product.

Product: refers to the item actually being sold. The product must deliver a minimum level of performance; otherwise even the best work on the other elements of the marketing mix won't do any good.

Place: refers to the point of sale. In every industry, catching the eye of the consumer and making it easy for her to buy it is the main aim of a good distribution or 'place' strategy. Retailers pay a premium for the right location. In fact, the mantra of a successful retail business is 'location, location, location'.

Promotion: this refers to all the activities undertaken to make the product or service known to the user and trade. This can include advertising, word of mouth, press reports, incentives, commissions and awards to the trade. It can also include consumer schemes, direct marketing, contests and prizes.

What is the importance of the marketing mix?

All the elements of the marketing mix influence each other. They make up the business plan for a company and handled right, can give it great success. But handled wrong and the business could take years to recover. The marketing mix needs a lot of understanding, market research and consultation with several people, from users to trade to manufacturing and several others.

Comments

Post a Comment

Popular posts from this blog

What are business activities?

What Are Business Activities? Business  activities include any activity a business engages in for the primary purpose of making a profit. This is a general term that encompasses all the economic activities carried out by a company during the course of business. Business activities, including operating, investing and financing activities, are ongoing and focused on creating value for  shareholders . KEY TAKEAWAYS Business activities are any events that are undertaken by a corporation for the purpose of earning a profit. Operating activities relate directly to the business providing its goods to the market, including manufacturing, distributing, marketing, and selling; they provide most of the company's cash flow and hugely influence its profitability. Investing activities relate to the  long-term use of cash , such as buying or selling a property or piece of equipment, or gains and losses from investments in financial markets and operating subsidiaries. Financing activitie...
Post a Comment
Read more

EXTERNAL COSTS AND EXTERNAL BENEFITS

External costs An external cost occurs when producing or consuming a good or service imposes a cost (negative effect) upon a third party. If there are external costs in consuming a good (negative externalities), the  social costs  will be greater than the private cost. The existence of external costs can lead to market failure. This is because the free market generally ignores the existence of external costs. External marginal cost (XMC)  the cost to a third party from the consumption/production of one extra unit. Example of External Cost Driving a car imposes a private cost on the driver (cost of petrol, tax and buying car). However, driving a car creates costs to other people in society. These can include: Greater congestion and slower journey times for other drivers. Cause of death for pedestrians, cyclists and other road users. Pollution, health-related problems. Noise pollution. Example of Production External Cost Producing electricity from burning coal leads to air ...
Post a Comment
Read more

Aims of a business

o    To Survive Many a times you find yourself fighting to survive. Sometimes your life is threatened by a certain sickness and you must do everything in your power to fight the disease and survive. It is the same thing with a business, it must survive. A business finds itself faced with tough competition and other things that threaten its survival. To survive means that the business is able to fight competition, gain new customers find reliable suppliers and grow. It is able to be successful and not fail. o    To make a Profit If you were to start a business today, what would be your main objective? Most people start businesses to make a profit. This means that the business is able to sell its goods and services at a price above the buying price . The difference between the selling price and buying price is the profit. For example, if you bought a product at E20 and sold it at E50, the E30 is your profit. o    To Grow or Expand Imagine a situatio...
Post a Comment
Read more