Marketing Mix: What it is and what it is for

The marketing mix is ​​one of the most important and 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 for, what are the 4 P's that make it up 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 4Ps model, which has become the most popular and accepted.

The marketing mix is ​​a fundamental tool for the development of the marketing plan, since it allows you to analyze and define strategic decisions about each of the elements that make it up, taking into account the target market, competition, positioning and marketing objectives. the company.

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What is the marketing mix for?

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

  • It allows us to know and satisfy the needs and expectations of customers, offering a quality product or service, with an appropriate price, efficient distribution and effective communication.
  • It allows you to differentiate 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 the analysis of the market and the environment.
  • 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 customers' perception and purchasing decision, so they must be defined and coordinated in a coherent and consistent manner.

Next, we explain what each of the 4 Ps consists of and what aspects you should take into account to design them.

Product

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

Some of the aspects that you must 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 with respect 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 that 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 attached to the product, such as the brand, price, origin, ingredients, instructions, etc.
  • The guarantee: 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, advice, etc.

Price

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

Some of the aspects that you must define about the price are:

  • The pricing strategy: the method you use to determine the price of your product, which can be based on costs, demand, competition, etc.
  • The discount policy: the set of conditions and criteria that you apply to reduce the price of your product, such as volume, prompt payment, season, etc.
  • The credit policy: the set of conditions and criteria that you apply to finance or defer payment of your product, such as the term, interest, form, 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.

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Distribution (Point of Sale)

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

Some of the aspects that you must define about the distribution are:

  • Distribution channels: the intermediaries that participate in the distribution process, such as wholesalers, retailers, agents, etc.
  • Distribution levels: the number of intermediaries involved in the distribution process, which can 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 can be intensive (in all possible points of sale), selective (in some 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 that are used to communicate and inform the market about the product or service, and to persuade and motivate customers to buy it. The promotion must be consistent with the image and positioning of the product, and must generate interest and trust in customers.

Some of the aspects that you must define about the promotion are:

  • Advertising: paid and non-personal communication that is carried out through mass media, such as television, radio, the press, 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: the direct and interactive communication carried out between the seller and the buyer, in order to inform, persuade and close the sale of the product.
  • Direct marketing: direct and personalized communication carried out with clients or potential clients, 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 examples are there 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, we show you some examples of marketing mix from well-known companies:

Coca Cola

The Coca-Cola product is a refreshing drink with a unique flavor, which is offered in different varieties, sizes and containers.

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.

Manzana

Apple's product is a set of electronic devices of high quality, design and innovation, which complement each other and offer a unique user experience.

Apple's price 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 differential characteristics of its products, using media such as advertising, direct marketing, influencer marketing and content marketing.

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Netflix

Netflix's product is an audiovisual content streaming service, which offers a wide variety of movies, series, documentaries and its own productions, personalized according to the preferences of each user.

The price of 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 promotion is based on generating engagement and loyalty with its users, using media 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 enhancing digital businesses in more than 7 countries and generating more than 1,500 million pesos.

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