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THE MARKETING MIX
The marketing mix can be
compared with baking a
cake.
If you don’t have the right
“mix” of ingredients, you will
get a very disgusting cake
and no-one will eat it.
THE MARKETING MIX
THE “4 P’S”
Similarly, if you don’t have
the right marketing mix, noone will buy your product.
1ST P: PRODUCT
1ST P: PRODUCT
Before a new product is
made, there needs to be
people (consumers) that
are interested in buying
that product.
Once a demand is
identified, a company will
consider how to develop
their product.
Therefore, companies
research to make sure
people will want this
product.
For example, before the
iPhone4 was created,
Apple did market research
and discovered that people
would want a front-facing
camera on the iPhone4.
1ST P: PRODUCT
1ST P: PRODUCT
The product mix also
included packaging and
branding.
How a product looks is
very important when
marketing certain
products. Nobody wants
to eat a hamburger that
looks like in was just
picked up off the floor!
Branding is a very
important concept in
marketing.
If a company has a good
brand image, this will
convince consumers to pay
more for a product.
This is why Starbucks can
sell coffee for more than
their competitors.
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2ND P: PRICE
2ND P: PRICE
Price is an important factor
in most products that
people decide to buy.
For some products, the price
mix is not as important.
For example, if a company’s
target market is very rich,
they can charge more for
their product.
Without strong branding
like Starbucks, other
coffee companies lower
their price to attract
consumers.
However, it must be a very
high quality product if people
are going to spend their
money. Even Bill Gates wants
to see value in what kind of
private jet he will buy.
3RD P: PLACE
3RD P: PLACE
Place mix is very important
for some companies.
The place mix also includes
the storage, distribution,
and channel selection.
For example, would a
convenience store in the
middle of the forest do well?
How about a McDonald’s
restaurant on Maple Leaf
campus?
3RD P: PLACE
Channel selection:
selection If a company wants to sell a
prestigious, luxury product they will not sell it in
street stalls.
The place mix is less important for products where
convenience is not essential to sell a product.
Airports are usually very inconveniently located,
but this does not stop people from travelling.
)
Storage:
Storage If a store is small, it
will not sell big products.
Distribution:
Distribution If a business is
selling to people who are
walking, they will not sell
heavy items.
4TH P: PROMOTION
The promotion mix is the last
part of a marketing plan.
The advertising,
advertising sales
promotion, and publicity can
promotion
only be done after a
company has created the
product, identified their
target market, chosen a
price, and chosen a place to
sell it.
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4TH P: PROMOTION
4TH P: PROMOTION
Promotion is very important to companies who
have many competitors who sell a similar product.
For example, we see many
advertisements for low
priced cars such as Honda,
Ford, and Toyota.
However, car companies with
a smaller target market don’t
need to rely on heavy
promotion. When was the
last time you saw a Rolls
Royce advertisement on TV?
THE PROMOTION MIX
Although 1 “P” might be
very important for a
product, it is important to
consider all 4 P’s when
developing a marketing
plan.
Ò
McDonald’s didn’t put
enough care into their
“place” mix, and the
“McPizza” cost them
millions of dollars.
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