Marketing mix

The successful marketing of a product depends on the consideration of four key elements—the product itself, its price, how it is promoted, and where it is sold. This combination is called the marketing mix, and it is used as a tool for planning product launches and campaigns. Before focusing on the marketing mix, marketers need to define the target market for their product by determining which groups of customers are most likely to purchase it.

The 4Ps and 4Cs of the marketing mix

First proposed in 1960, the classic marketing mix tool contains the 4Ps: product, price, promotion, and place. In the 1990s, these were recast as the 4Cs, which emphasized the customeroriented dimension of the tool.

Commodity

❯ Has the product been specifically engineered and designed to meet and exceed customer expectations?

Product

❯ Is the product the right design, size, and color to appeal to customers?

❯ What are its unique features? How does it compare with competitors?

Price

❯ What is the value of the product to prospective customers?

❯ What is the usual price point for this type of product?

Cost

❯ How much will the product cost the customer, and will it be seen to represent a good buy?

Communication

❯ What is the most meaningful way
to get marketing messages to customers and provide them with useful information?

Promotion

❯ What combination
of marketing and media channels will be most effective?

❯ When is the best time to run promotions?

Place

❯ Where should the product be sold—stores, online, or catalogs?

❯ Where do competitors sell, and is there a way to stand out in the same place?

Convenience

❯ How easy is it for busy customers to find and buy the product?

The 7Ps of the marketing mix

Some marketers use a more detailed model of the marketing mix, which has three additional elements.

• ❯ Product
• ❯ Price
• ❯ Place
• ❯ Promotion
• ❯ People Does the business employ the right people to deliver optimum service to customers?
• ❯ Physical environment Does the design and layout of the business premises appeal to customers?

The 7Cs of the marketing mix

This model offers a customerfocused variation of the 7Ps, adding three more elements to the 4Cs.

• ❯ Commodity
• ❯ Cost
• ❯ Convenience (or Channel)
• ❯ Communication
• ❯ Corporation How do company structure, stakeholders, and other competitors affect marketing?
• ❯ Consumer What are the customer’s needs and wants? Is the product safe? What product information is available?
• ❯ Circumstances Can the business deal with external factors, such as laws, weather, economy, culture?

DEFINING THE MARKET

In order to establish a marketing strategy for the product they are introducing to the marketplace, businesses have to define the customers they aim to sell to by researching and segmenting the market.

Market research

❯ Identifies gaps in the market for the launch of new products

❯ Measures customer reactions to new offers and campaign messages

Market segmentation

❯ Breaks down the market into smaller customer groups with similar needs

❯ Allows more focused campaigns with a greater chance of success

“ Product, promotion, and place create value. But price harvests value.”