See Also:
5 C’s of Credit (5 C’s of Banking)
Economic Production Run (EPR)
Economic Order Quantity (EOQ)
Market Segmentation
Porter’s Five Forces of Competition
Strategic Planning Process
Marketing Mix 4 P’s Definition
The marketing mix 4 P’s is a method for marketing a product. This is based upon the type of product, the price, where the product should be placed, and the promotion of that product.
Marketing Mix (4 P’s of Marketing) Explained
The marketing mix can best be explained through 4 P’s modeling. Each of the marketing mix components will be discussed in full below:
Product
The first of the 4 p’s is the product itself. The product itself has several decisions that need to be made about it. For example, the brand image and styling of the product have a lot to do with how the other three of the 4 Ps decision making is made. Other factors that go into the decision making of the product are whether or not a repair or warranty agreement should be offered. The ipod has a one year limited warranty that comes standard with the product’s purchase. This was a decision that was made by Apple when it brought the ipod into the market.
Price
The price of a product is sometimes made up before without much consideration for some products usually in a low cost high volume industry. Often times a simple margin over the cost to produce the product is all that is sufficient. However, some products require much more attention. Niche products such as in the fashion market require a lot of attention in pricing. A product that is priced higher will be considered to be of higher quality or possibly rarer.
Placement
The placement of a product is another important aspect in marketing mix strategy. If the product is in a niche market then it should not be as readily available as most low cost products like you would see in Wal-Mart. The logistics are another important factor and can affect the pricing as well. Dell has a just in time inventory system where the parts are not ordered or assembled until an order is made. This means that the pricing is lower, but the benefit of having computers on display in a store is not available.
Promotion
The promotion of a product also says a lot about the product in hand. If it is a niche product you would not want it to be seen on televised marketing commercial. You would much rather let the brand image or have it promoted in an expensive magazine. You also want your product to target the demographic in which the company believes the product will sell the best.
Marketing Mix Example
Charm Spice is a product that specializes in men’s products from body wash to deodorant. The company sets itself apart from the competition by pricing its products slightly higher, and putting better quality materials into its product. The company also places its products in grocery and drug stores where the majority of these products are sold. In addition, the company has decided to launch a campaign to promote its different products in the market as a premium brand in men’s health care products. All of these factors were used to enable the company’s products to be as successful as it could be.
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