Marketing Planet

The Marketing Mix

From 4P definition to a Marketing Mix

Following to the introduction of the 4-P’s on marketing, we will enter more into detail on understanding the interaction of these elements. It will become more obvious why the 4-P’s are called the Marketing Mix.
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Why a Mix?

All elements from the Marketing Mix have an interaction on each other. If I have a product, I will have to create price and sell it by one way or another. The way I communicate on this product will make it more or less visible. The price I ask for the product will suppose a special quality. If I communicate a lot on the product, it will have to be for sale in a place where my "public" will come. They all influence each other and it is in there that the difficulty lies.

If you try to make a balance between the different elements, it is very important to understand the market in which you want to sell the product and review your analysis regularly.

  • For exemple selling a television: you have to know what are the different qualities, what are the prices that the competition applies, where is it in general sold but also what do clients want to do with a television and what is the image of a television. According to the country or even a local target you will not have the same needs, possibilities of distribution or pricing strategy.
  • The second step is to verify within your company at what price you can produce the television. If yours is more expensive then the average, you need to verify if the increase of cost price corresponds with a better quality and with an existing potential market. Your higher price will have to find a reason in the eyes of the clients. If a market exists for a higher price and better quality television you will have to decide where to sell the television. It will not be an identical selling strategy whether it is a cheap or a more expensive one. Maybe a more selective distribution will be required.
  • You should not forget neither to adapt the communication of the product to its price and required image. An expensive television needs to be justified whether in terms of product difference but also to the image and perceived added value that it will propose. You should help your potential client to see why he should rather buy a televison more expensive. It is very important to scan your clients needs and your target public and above all, let him know where he can buy it.
  • In the end, the television that is more expensive will probably require better after sales service and can be a reason itself for being more expensive (though nowadays television seem to be rather stable in quality).
    • You notice the influences it all brings to decide to change an aspect of the Marketing Mix.

Some exemples:

    • A company selling the same pens from a product point of view can price them differently according to the packaging they put around it: packaging influences the price and thus image.
    • A product that is very simple and standard can be a total desaster when having a price too high: there is no balance between the elements.
    • A jewellery that wants to increase its sales by selling a collection for cheaper prices will find his image decreasing and looses some of his high class clients: product influences the price and the image and communication.
    • The same cars are about to be sold in new distribution ways - such as supermarkets - and decrease the price. However, not all cars can allow to do so since the distribution by a supermarket has an image much less sophisticated: distribution influences the communication.
    • Some products don’t sell on a special market due to their brand image. The producer can thus create another brand but mainaining the same product and sell anyhow.
    • A high class hotel will have a higher price than a basic hotel but offering other annex services than just a room to sleep, thus providing a reason for a higher price.

As long as the elements are in balance and correspond to the market possibilities, the product can be sold. Nowadays the Marketing Mix is even more important since so many products exists that it is difficult to distinguish one from another and the clients are becoming more and more demanding.
Bear in mind that besides the influence of one element on another, each modification has also a cost....