Marketing Mix: What it is and what it is for

by Moises Hamui November 27, 2023

The marketing mix is one of the most important and widely used concepts in the world of marketing. It is a set of tools and variables that allow us to design and execute effective marketing strategies, adapted to the needs and preferences of customers and the competitive environment.

In this article we explain what the marketing mix is, what it is used for, the 4 Ps that comprise it and some strategies that you can apply.

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What is the marketing mix?

The marketing mix, also known as the marketing mix, is the set of elements that a company can control and combine to influence demand and satisfy customer needs. These elements are product, price, distribution and promotion, and are known as the 4 Ps of marketing.

The term marketing mix was coined by Professor Neil Borden in 1960, based on the ideas of his colleague James Culliton, who described the marketing manager as a “mixer of ingredients”. Later, Professor Jerome McCarthy proposed the 4 P model, which has become the most popular and accepted.

The marketing mix is a fundamental tool for developing a marketing plan, as it allows for analyzing and defining strategic decisions on each of the elements that comprise it, taking into account the target market, the competition, the positioning and the company's objectives.

What is the marketing mix for?

The marketing mix is used to design and execute marketing strategies that allow the company to achieve its goals and improve its competitive advantage. Some of the benefits of the marketing mix are:

It allows us to know and satisfy the needs and expectations of customers, offering a quality product or service, with an adequate price, efficient distribution and effective communication.
It allows you to differentiate yourself and stand out from the competition, creating a unique and attractive value proposition that generates trust and loyalty in customers.
It allows you to optimize resources and maximize results by establishing the most appropriate criteria and actions for each element of the marketing mix, based on market and environmental analysis.
It allows you to evaluate and improve the performance of marketing strategies by measuring the impact and profitability of each element of the marketing mix, and by making the necessary adjustments to adapt to changes and opportunities.

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What are the 4 Ps of the marketing mix?

The 4 Ps of the marketing mix are product, price, distribution and promotion. Each of these variables has a direct influence on customer perception and purchasing decisions, so they must be defined and coordinated in a coherent and consistent manner.

Below, we explain what each of the 4 Ps consists of and what aspects you should take into account when designing them.

Product

The product is the good or service that the company offers to the market to satisfy a need or desire of the customers. The product must have characteristics and benefits that make it attractive and differentiated, and that generate value for the customers.

Some of the aspects you need to define about the product are:

Quality: the level of excellence and compliance with product standards.
Variety: the number of versions or models of the product offered to the market.
Innovation: the degree of novelty and improvement of the product compared to existing ones.
Design: the physical and functional aspect of the product, which influences its attractiveness and usability.
The name: the word or phrase that identifies the product and conveys its essence and personality.
Packaging: the container or material that contains and protects the product, and that influences its conservation and presentation.
The label: the set of information that is attached to the product, such as the brand, price, origin, ingredients, instructions, etc.
The warranty: the company's commitment to repair or replace the product in the event of a defect or malfunction.
After-sales service: the set of activities carried out after the sale, such as customer service, technical support, consulting, etc.

Price

Price is the amount of money that customers pay to purchase a product or service. The price should reflect the value that the customer perceives from the product, and should be competitive and profitable for the company.

Some of the aspects you need to define regarding the price are:

Pricing strategy: The method you use to determine the price of your product, which can be based on costs, demand, competition, etc.
Discount policy: the set of conditions and criteria that you apply to reduce the price of your product, such as volume, early payment, season, etc.
Credit policy: the set of conditions and criteria that you apply to finance or defer payment of your product, such as the term, interest, method, etc.
Psychological pricing policy: the set of techniques you use to influence the perception of the price of your product, such as rounding, contrast, framing, etc.

Distribution (Point of Sale)

Distribution is the set of activities and channels that allow the product or service to reach the end customer from the company. Distribution must be effective and efficient, and must facilitate the accessibility and availability of the product for customers.

Some of the aspects you need to define regarding distribution are:

Distribution channels: Intermediaries involved in the distribution process, such as wholesalers, retailers, agents, etc.
Distribution levels: the number of intermediaries involved in the distribution process, which may be direct (without intermediaries), short indirect (with one intermediary) or long indirect (with more than one intermediary).
Distribution coverage: the degree of presence and penetration of the product in the market, which may be intensive (in all possible points of sale), selective (in a few selected points of sale) or exclusive (in a single authorized point of sale).
Distribution logistics: the set of operations and resources used to transport, store and handle the product, such as transportation, storage, inventory, packaging, etc.

Promotion

Promotion is the set of actions and tools used to communicate and inform the market about the product or service, and to persuade and motivate customers to buy it. Promotion must be consistent with the image and positioning of the product, and must generate interest and trust in customers.

Some of the aspects you need to define about the promotion are:

Advertising: paid, non-personal communication carried out through mass media, such as television, radio, newspapers, the Internet, etc.
Sales promotion: the set of short-term incentives offered to the market to stimulate the purchase or consumption of the product, such as discounts, coupons, gifts, samples, etc.
Public relations: the set of activities carried out to create and maintain a good image and reputation of the company and the product before the public, such as press releases, events, conferences, donations, etc.
Personal selling: direct and interactive communication between the seller and the buyer, with the aim of informing, persuading and closing the sale of the product.
Direct marketing: direct and personalized communication with customers or potential customers, using means such as mail, telephone, email, SMS, etc.
Digital marketing: the set of strategies and actions carried out through the Internet and new technologies, such as SEO, SEM, email marketing, social media, content marketing, etc.

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What are some examples of marketing mix?

The marketing mix can be applied to any type of product or service, whether physical or digital, tangible or intangible, consumer or industrial, etc. Each company must design its own marketing mix, taking into account its market, its target audience, its competition and its objectives.

Below are some examples of marketing mixes from well-known companies:

Coca-cola

Coca-Cola's product is a refreshing beverage with a unique flavor, offered in different varieties, sizes and packaging.

Coca-Cola's price is affordable and competitive, and adapts to each market and each distribution channel.

Coca-Cola's distribution is intensive and global, reaching millions of points of sale around the world.

Coca-Cola's promotion is based on transmitting values such as happiness, friendship, diversity and social responsibility, using mass, digital and alternative media.

Apple

Apple's product is a set of high-quality, innovative and stylish electronic devices that complement each other and offer a unique user experience.

Apple's pricing is high and premium, reflecting the value and exclusivity of its products.

Apple's distribution is selective and controlled, using its own physical and online stores, as well as authorized distributors.

Apple's promotion is based on highlighting the benefits and differentiating features of its products, using means such as advertising, direct marketing, influencer marketing and content marketing.

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Netflix

Netflix is a streaming service for audiovisual content, offering a wide variety of films, series, documentaries and its own productions, customized according to the preferences of each user.

Netflix is affordable and flexible, offering different plans and payment methods, as well as a free trial period.

Netflix distribution is direct and digital, using its own online platform, accessible from any device and location.

Netflix's promotion is based on generating engagement and loyalty with its users, using means such as email marketing, social media, viral marketing and guerrilla marketing.

Written by Moises Hamui Abadi : I am an entrepreneur, founding partner of Viceversa and SoyMacho. After leading several digital businesses and advising several other businesses, I decided to form MHA Consulting, a digital marketing consultancy dedicated to growing and empowering digital businesses in more than 7 countries and generating more than 1,500 million pesos.