The marketing mix consists of 4 P’s. They are:
Although these terms are quite self-explanatory, let’s briefly go over them anyway to clarify things.
Product– What you’re selling.
Price– The final value of the product which the customer will pay. There are a few different types of pricing systems which are explained later in this blog.
Promotion– This includes all methods adopted to increase the visibility of one’s product in the market as well as the persuasion methods adopted to encourage conversions.
Place– This is where the customer will acquire the product from- a final place of distribution.
All four of these are important aspects of the overall marketing experience and therefore strategic planning is required for their optimization.
For example, let’s take pricing. There are a lot of types of pricing strategies. Any one of these can be employed according to the situation.
1. Perceived Value Pricing
This is based on market research. It is the price deemed appropriate for a product according to information obtained from the prospects.
2. Promotional Pricing
This is the price that is set for when the volume of sales needs a boost or when stocks need to be cleared.
3. Psychological Pricing
Two simple examples should make this concept clear.
Example 1: A product is priced at $199 instead of $200. Letting go of that $1 makes it look cheaper. It is a very commonly used practice to make a product’s price appear more attractive.
Example 2: Giving offers such as Buy 2 Get 1 Free. Instead of this the seller could also have offered a small discount on each purchase. However, the results would not be the same. A 10% discount is not as attractive as the word ‘Free’. Secondly, in order to get that free item some customers will buy 2 of those items, where they might have bought 1 if there were no offer on the table at all. This means more sales.
Psychological pricing strategies are, therefore, used to make the product and the corresponding price more alluring.
4. Discount Pricing
Keeping this as part of your strategy means that when deciding on the initial prices the seller leaves some room for a future discount offer. So the initial prices go higher than the minimum required profit. In this way, when discounts are offered there is still a margin for profit.
5. Penetration Pricing
The name gives the purpose behind this away. This is for when a new business, or a struggling business, lowers their prices to increase their market share. They need a way to introduce their product to the user so they do it this way. This is usually the last resort, unless the product was designed with this approach in mind.
6. Competitive Pricing
Setting the price at the same level as the best in the business or higher is competitive pricing. This is done when the seller is setting their product up in the upper tier. It is a marker of ‘high quality’ and psychologically sets the customer’s expectations for a good quality product.
This is a permanent measure, unlike discount or promotional pricing. It is a decision the business owner has to take about their product.
So, the pricing element of the marketing mix can manifest in the aforementioned ways. While the price is what will make a business their profit, it is also a marketing tactic.
Therefore, using the above mentioned pricing strategies, you can make sure that your prices are not decided haphazardly. There should be a method to that madness and an objective behind it.
There are two main advertising channels available to any business.
Traditional marketing contains within it TV ads, yellow pages, other newspaper ads, radio ads etc.
The main tool of any business trying to make a name for itself, using traditional marketing media, is to enter with a bang. Invest as much as your budget allows into buying space and air time.
Being clear on your brand identity and the personality you want to give it will make this part much easier and a lot more fun. Make sure that your ads are distinctive and the tone and style across all media is cohesive.
This form of marketing is becoming more and more important to cover as world becomes more digital.
One of the most commonly used media channels is social media. No wonder then that all businesses have social media presence now. It is part of the job now.
The first thing a potential customer does, even if they heard about the product on TV, is to Google it. The reason behind that is information. Most people now will not buy a product without any prior information.
This social media and digital trend is giving more and more power to the buyer to make informed decisions and people are making the most of it.
Therefore, for digital marketing we are listing a list of things that should be part of every business’s marketing strategy:
⦁ Create and maintain social media accounts across the main channels (Facebook and Instagram are the most important).
⦁ Get digital marketing experts on board so they can look after SEO.
⦁ Build an online store.
⦁ Plan and run PPC campaigns.
Placement of your products and making them accessible to the target market are extremely important areas of marketing.
If your product has been manufactured for the masses then equal distribution of assets along different placement channels might work. This means that you make use of both real life as well as digital channels.
There is surely going to be some kind of a narrowing possible of your target audience. Use that information to figure out where they are more likely to be present. This should be part of the market research.
If your product is a niche one then you may reserve your energy and resources to only those places where the target audience is more likely to find you.
The 4 P’s of the Marketing Mix target all the main aspects of marketing. Therefore, it is very useful to keep them in mind when devising your marketing strategy.
There is, of course, a lot more to these elements than just what is stated here. However, this was only meant as a comprehensive introduction to what a well-planned marketing strategy entails. The purpose was to introduce you, the reader, to these concepts.
We hope that you got some useful ideas from this piece and that it will help you get your business off the ground!
The marketing mix consists of 4 P’s. They are: ⦁ Product ⦁ Price ⦁ Promotion ⦁ Place Although these …