Marketing mix-NET exam - paper 2

                                   Marketing mix

Definition of Marketing Mix

According to Philip Kotler - "Marketing Mix is the combination of four elements, called the 4P's (product, Price, Promotion, and Place), that every company has the option of adding, subtracting, or modifying in order to create a desired marketing strategy"

According to Principles of Marketing, 14e, Kotler and Armstrong, 2012 - "The Marketing Mix is the set of tactical marketing tools - Product, Price, Promotion, and Place - that the firm blends to produce the response it wants in the target market."

The marketing mix is a business tool used in marketing and by marketers.The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. T 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.
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.

• People - The individuals involved in the sale and purchase of products or services come under people.
• Process - Process includes the various mechanisms and procedures which help the product to finally reach its target market
• Physical Evidence - With the help of physical evidence, a marketer tries to communicate the USP’s and benefits of a product to the end users

Four C’s of Marketing Mix

. In the current scenario, the four C’s has thus replaced the four P’s of marketing making it a more customer oriented model. Koichi Shimizu in the year 1973 proposed a four C’s classification.

• Commodity - (Replaces Products)
• Cost - (Replaces Price) involves manufacturing cost, buying cost and selling cost
• Channel - The various channels which help the product reach the target market.
• Communication - (Replaces Promotion)

Conclusion

Through its successful use of a balanced marketing mix,  Traditional distribution methods are balanced by a unique product and updated promotional strategies. This ensures that the brand message reaches the right people at the right time in the right way.