Marketing mix is one of the most important topics in marketing science and learning this topic is essential for digital marketing professionals.
One of the basic topics of marketing science is the topic of marketing mix, which those interested in this profession should be familiar with. This scientific concept consists of 4 parts: product, price, distribution, and promotion. Considering that each of these factors starts with the English letter P, they are known as 4P.
In the following article, using real examples, we examined the challenges and opportunities of the implementation of mixed marketing in various businesses. The result of this discussion is in front of you.
Table of Contents
The four important P’s of the marketing mix
Simple concept of marketing; It is the right use of the product at the right time and place. Although it sounds easy, this simple definition requires a lot of effort to be operationalized. The main objective of the marketing mix is to make the best use of products. Mixed marketing assures business owners that this product is used in the best way. To know how to plan for a successful product launch, we need to get to know these 4 P’s.
These 4 titles are price, product, promotion, and place.
Product
A product can be understood or not understood by customers and meet their specific needs and demands. All products are part of a product life cycle (PLC) and marketing experts need to identify different situations in this field and plan for them. So you should know the problems that the product can solve. The benefits of the product and how to use them should be placed among consumers and the main purpose of sales should be taught. In addition, the main buyers of the product should also be identified.
Price
The price determines the actual cost expected by the customer. How a product is priced directly affects how it is sold. Each of these is related to the ratio of the amount of profit received by the product to the expenses resulting from its supply. If a product has a price that is too high or too low compared to the profit, then it will not be sold. That’s why the customer’s view of what you’re selling is so important.
If a good profit is received from the customer, then that product is successfully priced higher than its targeted profit. Instead, if your product is of low value in the eyes of the customer, you should sell it below the price. The price of a product is also affected by its distribution plans. The amount of product profit depends on its price the difference between price and cost and how competitors price a competitive product.
Promotion
Sales promotion techniques and strategies are all included under this P meaning promotion. These strategies include advertising, sales promotion, special offers, and public relations. Regardless of the costs required in this field, the suitability of this P for the product, price, and user that is advertised to him is also essential. You should be able to differentiate between marketing and promotion. Promotion is only the promotional aspect of marketing.
place (distribution)
place (distribution) means how to present the product to the customer. Product distribution is one of the subsets of this P. A product distribution strategy helps you understand which channel will work best for your product.
History of the marketing mix and its concept
The marketing mix idea became famous after the publication of the marketing mix article by Nail Borden in 1964. In this article, Borden explains how he came to use the term, which was coined by James Culliton, who in 1940 defined marketing management as a combination of various factors. Borden’s article defined these factors as including product, planning, price, branding, product distribution, display, packaging, advertising, sales promotion, and personal selling, among others.
Marketing mix objective
These four P’s have been formulated and developed by experts over the years to improve the structure and performance of a successful marketing strategy. We must use this tool to satisfy the seller and the buyer. When the marketing mix is used well it is considered as a key factor in the success of the product.
The main characteristics of the marketing mix
The dependent variables
The marketing mix consists of four variables. These four variables are complementary and must be planned together to ensure that these four variables are aligned.
Achieving marketing goals
Companies can achieve their marketing goals such as sales, benefits, and customer retention and satisfaction with the help of these variables.
The concept of flexibility
The marketing mix is a flexible state that focuses on any of the variables that may increase or decrease. Variables that can provide good conditions to the customer and meet his needs.
Continuous review
Focusing on changing trends and needs in the company as well as the market is essential to ensure that marketing mix elements are linked and updated.
The role of the marketing manager
A mature, intelligent, and creative marketing manager should have full control over the marketing mix. This effective role means that this manager is responsible for achieving the expected results with the acquired skills.
The customer is the priority
The main characteristic of the marketing mix is that the customer is the priority. The profit of a product is determined by the customer’s purchase, and the main goal is to achieve a satisfied and loyal customer.
Building a marketing mix
A marketing manager must have creative and excellent thinking. However, relying solely on these is wrong and can lead to undesirable results. To ensure a research-based marketing mix that combines facts with innovation, the relevant manager should undertake the following systematic processes:
Systematic processes include all the processes of satisfying the audience through research and investigation about the audience and the business structure.
Step 1: Explaining the main sales objective
The first step of a marketing manager is to explain what the product offers or what the main selling objective (USP) is. You need to find out how much this USP is important to the consumer and whether the service offered is ambiguous to them or not. This requires that you understand the key features and benefits of the product and understand whether they will help sales or not.
Step 2: Understanding the consumer
The second step is knowing the consumer. The product can be considered by recognizing the identity of its buyer. Other elements of the marketing mix follow this understanding. Who is the customer? What does it need? What is the product worth to them? These concepts ensure that what the product delivers is relevant and targeted.
Step 3: Understanding the competition
The next step is to understand the competition. Prices and associated benefits such as discounts, warranties, and special offers should be considered. Understanding the profit margin of a product and comparing it with the actual amount of its price division can help in realistic pricing.
Step 4: Evaluation of placement points
At this stage, the marketing manager must evaluate the points of product placement to see where the customer buys and how much the costs of using this channel are. Several channels may increase target customers and ensure their easy access. The profit of the product is directly related to its availability.
Step 5: Development of relationships/promotion strategy
The sales promotion strategy can now be developed based on knowing the audience and the set price of the products. Whatever the promotional methods are, they should demonstrate the product to customers and ensure that the key features and benefits of the product are clearly understood.
Step 6: Review the marketing mix
You have to look at everything to see how these factors are known and programmed to interact with each other. All marketing variables are interdependent for an effective strategy. Do sales channels increase product profits? Are sales promotion factors in step with product distribution goals by channels? The marketing plan can be completed when it is ensured that all four factors are integrated and there are no conflicting messages whether virtual or explicit.
The main challenges
Over the years, marketing managers have realized that the traditional marketing mix has limitations in its structure. Several important factors were brought together by four larger factors, whereby they lost their original importance among several other factors.
Every business has its challenges, in digital marketing these challenges are focused on the services that can be provided as well as customers.
Two important criticisms and their solutions:
Not focusing on services
A marketing mix must be applicable to be able to relate to the product. This concept is better understood in traditional marketing. Intangible goods and services are also customer propositions and should be planned just like physical products. To prepare for the main challenges of these services, the four P model is equipped with three other categories.
These three complementary categories are:
- Physical evidence is proof that the service was properly applied.
- People are employers and make the wheels of business work
- Accesses are the methods by which the service is implemented
Lack of real customer focus
Although focusing on the customer and their interests is a very important factor in the marketing mix, it is sometimes overdone by overzealous marketing teams. To examine this issue, Robert F. Lauterborn put the four C categories at the center of customer issues in 1990. This model changed the four P’s to more customers’ desires, i.e. the four C’s.
- Product for customer needs
- Price for customer expenses
- Promotion of customer communication
- Finding the right location for the customer’s well-being
Marketing mix example – NIVEA
NIVEA is a well-known company that works in the field of skin and cosmetic products. NIVEA is a brand manufactured and sold by Beierdorf, the brand was founded in 1882. In the UK, the company above all ensures the high availability of its products. In addition, this company has always tried to know the diverse needs of its main consumers and to offer special products to the market as much as possible.
Marketing mix for new products
Market research provided an opportunity for younger customers in the market. This opportunity led to the start of production of NIVEA Visage Young in 2005. This product was made for girls aged 13 to 19 years.
To start the production of this product, the company should create a balanced and relevant marketing mix to show to its young audience. From its first launch in 2005 until its relaunch in 2007, the company focused on balancing the marketing mix to ensure that all of its product features were well represented to reach the right target audience.
the product
This company placed its main priority on research to understand the growing market and consumer activity. This awareness helped the company to produce more innovative new products that meet the needs of consumers. During this research, it became clear that younger consumers like products that have specified the needs of the skin in their age group. Among those needs was a beauty regimen for daily consumption that instead of prescribing a medical product that only showed a series of specific skin problems, identified their needs. This product was redesigned to meet these needs.
According to this company, some changes will help it work better in some areas, such as better packaging to reduce waste, the use of more natural products, and the use of recyclable plastics.
The actual pricing strategy is placed in the actual profit. The final price should be adjusted accordingly to make the product more attractive to the buyer and seller. After its relaunch, NIVEA Visage Young was slightly more expensive than before for better packaging and increased product range.
Since this product was bought by mothers for their daughters, the price was kept low to keep a good profit. Effective pricing means that the sale of this product accounted for about 7% of the total sales of NIVEA visage.
Distribution
As it was said, NIVEA had planned for the full availability of its products so that its products are easily available to its target customers.
Promotion
NIVEA has always tried to base its communication with its customers on the lifestyle of its target customers. This company was not seen in advertising spaces such as television. But instead, their communication methods were mostly chosen by customers. Sales samples are a very important activity that allows consumers to try the original product. There is also a magazine called FYL to raise the audience’s view of the product. The company also used a new social network to raise awareness of the product among the target audience.