Marketing Mix
The marketer delivers value to the customer basically through his market offer. He takes care to see that the offer fulfills
the needs of the customer. He also ensures that the customer perceives the terms and conditions of the offer as more
attractive.
Firstly the marketer creates the product that meet the identified need s of the consumer.
Secondly, he carries out functions such as transportation so that the product can conveniently reach the consumer.
Thirdly, he communicates benefits of the offer to the consumer by carrying out various promotional activities such as
personal selling, advertising and sales promotion.
Lastly, he tackles the price mechanism and consummates the marketing task by arriving at a price that is acceptable to the
consumer; these are the elements with which the marketer accomplishes his valued delivering task.
Definition of marketing mix
According to Philip Kotler” Marketing mix is a set of controllable variables that the firm can use to influence buyers
response.”
Professor Kelly and Lazar “Marketing mix is composed of a large battery of devices which might be employed to induce
consumers to buy a particular product.”
Meaning: Marketing mix is a blend or the compound of all the marketing efforts hovering around the 4 ingredients
namely product, price, promotion and place. These are ingredients and revolve the potential consumer satisfaction as the
final points.
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.
The four P’s of marketing
1. Product
2. Price
3. Promotion
4. Place
Product: it is the first element of marketing mix. It is the heart of the marketing program. The needs of the
consumer must be recognized before deciding the products to be developed. It consists of product line and product
range, product design, product package, quality, product labelling, branding and after sale services and guarantees.
Or
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.
Price: the second element is the value of the product expressed in terms of money. It is a powerful instrument in
which both buyers and sellers are keenly interested. It is equal to the consumers’ expectations and expectations
imply product installation, credit discount and commissions after sale services etc.
Or
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.
Promotion: it is the communication mix which is concerned with bringing the products to the knowledge of the
customer and persuading them to buy. It is a function of informing and influencing customers like personal selling
and impersonal communication like advertising, sales promotion and public relations.
Or
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.
Place (physical distribution): place or distribution mix stands for matching arrangements for the smooth flow of
goods and services from the producers to the consumers. It is concerned with creation of place, time and
possession utilities. It signifies 2 things-physical distribution and channel of distribution.
Or
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'.
4P’s
4C’s
4O’s
Product
Price
Promotion
Place
Consumers need
Consumers cost
Consumers communication
Consumers convenience
Object
Objective
Operations
Organizations
Factors of marketing mix
1. Product factors (controllable)
Product, pricing, branding, personal selling and physical distribution
2. Market factors(non-controllable)
Consumers, buying behavior, competitor’s behavior, government behavior , trader’s behavior
Advantages of marketing mix
1. Precision of market study
2. Better utilization of market resources
Limitations of marketing mix
1. Theoretical
2. Lace of uniform opinion
3. Over changing environment
4. Imbalanced approach
Problems of updating marketing mix
1. Multiple objectives
2. Problems in measuring 4p’s
3. Competition among consumers
4. Difficult to measure market response
5. Element of uncertainty
Four P’s of Marketing mix
1. Product mix:
The key element of marketing program is product. It is a sum total of the physical and psychological satisfaction. It
provided to the buyer. Before making any decision on pricing, promotion and distribution, a marketer has to
determine what it will present in the market. Any firm that markets the product has its aim to achieve consumer’s
satisfaction and profit maximization. The medium through which the firm attains this dual objective is the product.
What is a product?
According to Philip Kotler” a product is anything that can be offered to the market for attention, use, consumption,
satisfaction that may satisfy a want need.” it includes physical services, persons, place, organization and ideas.
Different views of product:
1. manufacturer(raw material)
2. Economist (utilities)
3. Consumer(satisfaction)
4. Marketer(building blocks of managing)
Features of product
1. Tangibility - a sum total of physical attributes. Size shape density taste colour etc.
2. Intangible attributes - Include services or benefits that cannot be touched tasted etc., can only be experienced and
felt. E.g. haircut, banking services, cold& fresh (fridge) etc.
3. Associated attributes - includes before and after sale services. Accessories that go with the product e.g. car phone
with mobile.
4. Exchange value - must be capable of being exchanged between the seller and buyer for mutually agreed price.
5. Consumer satisfaction - should have the ability to offer value satisfaction to the consumer. The satisfaction may
be real or psychological e.g. when we buy cosmetics we buy beauty and hope.
Meaning of product mix
1. A product mix (also called product assortment) is the set of all products and items that a particular seller offers for
sale.
2. A total group of products that an organization markets.
3. A company’s product mix has a certain width, length, depth and consistency.
Dimension of product mix
1. The width of company’s (say HLL’s)product mix refers to how many different product lines the company
carries such as bathing soap, detergents, shampoos, toothpaste, food products.
2. The length of a company’s product mix refers to the total number of items in its product mix. Thus in each of
the product line HLL has a number of product items. E.g., in the product line of bathing soaps, HLL has several
product items like Lux, Liril, Lifebuoy, Pears.
3. The depth of a company’s product mix refers to how many variants are offered of each product in the line.
Thus if close up toothpaste comes in three formulations and in three sizes, Close up has a depth of nine (3x3).
The average depth of HLL product mix can be calculated by averaging the number of variants within the brand
groups.
4. The Consistency of the product mix refers to how closely relate the various product lines are in end-use,
production requirements, distribution channels, or some other way. HLL’s product lines are consistent insofar as
they are consumer goods that go through the same distribution channels.
Variable of product mix
1. Product line: a group of closely related products to satisfy a class of need to be sold to consumer group etc.
2. Product design: consist of its appearance, arrangement of materials, the use and application of the product.
3. Product package: wrappers or containers used to house the product.
4. Product labelling: description or information to identify the product.
5. Product branding: image of the product.
6. Product services and guarantees: After sale services and guarantees associated with the product.
Factors influencing Product Mix
1. Market demand- By launching a new product, if the demand of that product is increasing then that product is
beneficial to the company (keep in mind the cost of resources available) start production of the new product but
if the demand decreases drop the product.
2. Cost of product- If with the help of resources the company can develop new product with low cost then the
company can produce that product.
3. Quantity of production- If the production of new product is considered to be on a large scale then the company
can add 2 more items in product line.
4. Advertising and distribution factors- if the advertising and distribution of the organization are same i.e. it does
not need an additional effort to advertise or distribute, the company can add 1 or more products to its product line.
5. Use of residuals -if by- products can be developed then the companies should produce those by-products.
6. Change in companies objective – keeping in view the main objective of the company i.e. profitability, the firm
may add or drop some product.
7. Competitor’s action- In order to meet the competition/market a firm may decide to include or eliminate the
produce.
8. Change in purchasing power and behavior of consumers- When the number of customer’s increases or
change in buying habits and fashion the company may decide to increase more products to the product line.
9. Full utilization of marketing capacity - If the existing marketing resources are not being utilized to their full
capacity the company may decide to start production of another product to utilize the capacity fully.
10. Goodwill of the company - If the company is of a good reputation it can market new product without any
difficulty. It can decide to decide to increase a new product without any hitch because it knows that the customers
will accept the product introduced by the firm.