The marketing mix is the set of controllable, tactical marketing tools that a company uses to produce a desired response from its target market. It consists of everything that a company can do to influence demand for its product. It is also a tool to help marketing planning and execution. Show
The four Ps of marketing: product, price, place and promotionThe marketing mix can be divided into four groups of variables commonly known as the four Ps:
Marketing toolsEach of the four Ps has its own tools to contribute to the marketing mix:
Marketing strategyAn effective marketing strategy combines the 4 Ps of the marketing mix. It is designed to meet the company’s marketing objectives by providing its customers with value. The 4 Ps of the marketing mix are related, and combine to establish the product’s position within its target markets. Weaknesses of the marketing mixThe four Ps of the marketing mix have a number of weaknesses in that they omit or underemphasize some important marketing activities. For example, services are not explicitly mentioned, although they can be categorized as products (that is, service products). As well, other important marketing activities (such as packaging) are not specifically addressed but are placed within one of the four P groups. Another key problem is that the four Ps focus on the seller’s view of the market. The buyer’s view should be marketing’s main concern. The four Ps as the four CsThe four Ps of the marketing mix can be reinterpreted as the four Cs. They put the customer’s interests (the buyer) ahead of the marketer’s interests (the seller).
Want to learn how to understand and talk to your customers? Join us for our next cohort of the Customer Development Immersive. Expanding your business into a new market? Sign up to access our International Growth Collection —it features specialized resources built in partnership with Export Development Canada. What Is Marketing?Marketing refers to activities a company undertakes to promote the buying or selling of a product or service. Marketing includes advertising, selling, and delivering products to consumers or other businesses. Some marketing is done by affiliates on behalf of a company. Professionals who work in a corporation's marketing and promotion departments seek to get the attention of key potential audiences through advertising. Promotions are targeted to certain audiences and may involve celebrity endorsements, catchy phrases or slogans, memorable packaging or graphic designs and overall media exposure. Key Takeaways
Understanding MarketingMarketing as a discipline involves all the actions a company undertakes to draw in customers and maintain relationships with them. Networking with potential or past clients is part of the work too, and may include writing thank you emails, playing golf with prospective clients, returning calls and emails quickly, and meeting with clients for coffee or a meal. At its most basic level, marketing seeks to match a company's products and services to customers who want access to those products. Matching products to customers ultimately ensures profitability. The 4 P's of MarketingProduct, price, place, and promotion are the Four Ps of marketing. The Four Ps collectively make up the essential mix a company needs to market a product or service. Neil Borden popularized the idea of the marketing mix and the concept of the Four Ps in the 1950s. Image by Sabrina Jiang © Investopedia 2020ProductProduct refers to an item or items the business plans to offer to customers. The product should seek to fulfill an absence in the market, or fulfill consumer demand for a greater amount of a product already available. Before they can prepare an appropriate campaign, marketers need to understand what product is being sold, how it stands out from its competitors, whether the product can also be paired with a secondary product or product line, and whether there are substitute products in the market. PricePrice refers to how much the company will sell the product for. When establishing a price, companies must consider the unit cost price, marketing costs, and distribution expenses. Companies must also consider the price of competing products in the marketplace and whether their proposed price point is sufficient to represent a reasonable alternative for consumers. PlacePlace refers to the distribution of the product. Key considerations include whether the company will sell the product through a physical storefront, online, or through both distribution channels. When it's sold in a storefront, what kind of physical product placement does it get? When it's sold online, what kind of digital product placement does it get? PromotionPromotion, the fourth P, is the integrated marketing communications campaign. Promotion includes a variety of activities such as advertising, selling, sales promotions, public relations, direct marketing, sponsorship, and guerrilla marketing. Promotions vary depending on what stage of the product life cycle the product is in. Marketers understand that consumers associate a product’s price and distribution with its quality, and they take this into account when devising the overall marketing strategy. Marketing refers to any activities undertaken by a company to promote the buying or selling of a service. If there is a limited quantity of a product, a company may market itself in an attempt to be better positioned as one of the few who get to buy something. Types of Marketing StrategiesMarketing is comprised of an incredibly broad and diverse set of strategies. The industry continues to evolve, and the strategies below may be better suited for some companies over others. Traditional Marketing StrategiesBefore technology and the internet, traditional market strategies was the primary way companies would market their goods to customers. The main types of traditional marketing strategies includes:
Digital MarketingThe marketing industry has been forever changed with the introduction of digital marketing. From the early days of pop-up ads to targeted placements based on viewing history, there are now innovating ways companies can reach customers through digital marketing.
In 1978, Gary Thuerk sent a message to roughly 400 people using ARPANET, the first public packet-switched computer network. With that message, the first ever recorded spam e-mail message had been sent. Benefits of MarketingWell-defined marketing strategies can benefit a company in several ways. It may be challenging in developing the right strategy or executing the plan; when done well, marketing can yield the following results.
According to MarTech, a digital marketing provider, the world will spend $4.7 trillion on marketing by 2025. This estimate includes an increase of $1.1 trillion from 2021 to 2025. Limitations of MarketingThough there are many reasons a company embarks on marketing campaigns, there are several limitations to the industry.
What Is Marketing?Marketing is a division of a company, product line, individual, or entity that promotes its service. Marketing attempts to encourage market participants to buy their product and commit loyalty to a specific company. Why Is Marketing So Important?Marketing is important for a few reasons. First, marketing campaigns may be the first time a customer interacts or is exposed to a company's product. A company has the opportunity to educate, promote, and encourage potential buyers. Marketing also helps shape the brand image a company wants to convey. For example, an outdoor camping gear company that wants to be known for its rugged, tough goods can embark on specific campaigns that embody these traits and make these emotions memorable to prospective customers. What Is the Purpose of Marketing?An important goal of marketing is propelling a company’s growth. This can be seen through attracting and retaining new customers. Companies may apply a number of different marketing strategies to achieve these goals. For instance, matching products with customers' needs could involve personalization, prediction, and essentially knowing the right problem to solve. Another strategy is creating value through the customer experience. This is demonstrated through efforts to elevate customer satisfaction and remove any difficulties with the product or service. What Are the 4 Ps of Marketing?A commonly used concept in the marketing field, the Four Ps of marketing looks at four key elements of a marketing strategy. The Four Ps consist of product, price, place, and promotion. What Are the Types of Marketing?There are dozens of types of marketing, and the types have proliferated with the introduction and rise of social media, mobile platforms, and technological advancements. Before technology, marketing might have been geared towards mail campaigns, word-of-mouth campaigns, billboards, delivery of sample products, TV commercials, or telemarketing. Now, marketing encompasses social media, targeted ads, e-mail marketing, inbound marketing to attract web traffic, and more. Which of the following is a form of traditional marketing?Traditional Marketing
This includes advertising in print publications, newsletters, direct mailings, television, billboards and radio.
What are the two models that are commonly used to explain the relationship between advertising and sales?The two models that are commonly used to explain the relationship between advertising and sales are the: concave-downward function and the S-shaped response function.
What two questions must be answered for the development of the promotional program?Which of the following are questions that must be answered for the development of the promotional program? When should the promotion be run? Who is the target audience?
Which of the following is a process of combining traditional marketing activities with activities on social media?Answer: Integrated marketing communication (IMC) can be defined as the process used to unify marketing communication elements, such as public relations, social media, audience analytics, business development principles, and advertising, into a brand identity that remains consistent across distinct media channels.
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