The marketing mix consists of the four Ps: product, price, promotion, and placement. Each element is important for effective promotion, and the mix varies depending on the company’s objectives.
Most business school graduates are familiar with the term marketing mix. It refers to the different tools that a company uses to effectively promote its business in the market. These are often separated into what are known as the four Ps of marketing: product, price, placement, and promotion.
Product refers to the actual physical item that a business is trying to sell to the consumer. Marketers typically don’t focus as much on product development as on product presentation. Therefore, the marketing mix at this stage should consist of the name of the product, its packaging, and how it will differ from similar products in the store.
Price is how much the company will charge consumers for the product. Usually, a lot of thought goes into pricing because setting a price that is too high can lead to few sales. There are also dangers in setting a price that is too low, as that price can lead potential customers to think that the product lacks quality. Marketers use this knowledge to help price and profit from the product. The marketing mix may also include special price incentives, such as coupons.
Promotion is how the company spreads the word about a product. It involves working with stores to distribute samples, run public relations events, and buy advertising—in print, in broadcast media, or both. The role promotion plays in the marketing mix depends on how much the company wants to advertise the product and how much money it has set aside to do so. Today, the Internet is also a marketplace for product promotion, and online campaigns can be quite cheap but effective.
Placement is the art of placing the product in the right place at the right time. Proper placement is important, so that the consumer sees the product and wants to have it. This is part of the marketing mix because sellers need to appeal to retailers and gain high-profile space in those stores if they want their products to sell well. Placement may also involve determining and reaching a specific target audience. For example, a company that sells paint might set up a booth at a home improvement show to reach people who want to learn about and buy paint.
The marketing mix is unique to each product or company. It often depends on the objectives that the organization would like to achieve. This can range from selling as many products as possible to cultivating a reputation for making high-quality products.
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