The marketing mix is the collection of activities, or methods, that a business does to sell its brand or product. It refers to a group of methods, or techniques, that a business uses to sell its products or services.
The marketing mix consists of the key elements of a marketing strategy which an organisation can use to improve their chances that customers will notice and purchase their products or services.
What is the importance of the marketing mix?
The marketing mix components interact with one another in various ways and each component of the marketing mix has an impact on the others. When managed properly, they help create a company's business strategy and may contribute significantly to its success. But, if managed incorrectly, the company's recovery might take years. The marketing mix requires extensive knowledge, a great deal of understanding, market research, and engagement with a range of stakeholders, including users, traders, manufacturers, and more.
The modern marketing mix was initially published in 1984 and has since evolved into the basis for all marketing management choices.
The original marketing mix, sometimes known as the 4 Ps, was first proposed by scholar and marketer Philip Kotler and E. Jerome McCarthy and offers a framework for making marketing decisions. Since then, McCarthy's marketing mix has grown to become one of the industry's most reliable and well-liked frameworks. The 4Ps are product, price, place, and promotion.
Over the years, a plethora of new marketing strategies has been developed as the market has become more competitive, customer requirements and expectations have changed, and we have learned a lot more about the buyers' journey.
Marketing has evolved from using conventional media to using new digital media. Reaching and connecting with the new Gen Z and persuading them to buy products and services is a new challenge for marketers.
All of these have made it necessary to develop new marketing concepts, which are redefining how marketing strategies were created: 4 Ps became 5 Ps of marketing; 5 Ps became the 7 Ps of marketing 7 Ps became the 12 Ps of marketing, and the process is still evolving.
The 12ps of the marketing mix are:
Product - What your company makes or provides to your customers, ie products or services you are selling.
Price - The amount a business charges its customers for its products or services.
Place - Where your customers are able to buy/purchase your products or services, eg a retail store, online store or directly from the manufacturer.
Promotion - All the activities you are employing to create awareness about your products or services with the aim of persuading customers to purchase or inform them about new offerings, eg branding, TV adverts, social media activities, marketing emails and so forth...
People - This is the ‘Who’ or your target audience, ie your prospective and loyal customers.
Process - Refers to the activities or processes involved in delivering your products or services to your customers.
Positioning - This is the 'Where' your products or services stand against the competition, thus providing your customers a reason to buy your products or services based on their value.
Presentation/Packaging - This is the 'How' you present your products or services, making it extremely appealing to your customers.
Purpose - The reason or the 'Why' of your company (brand), products and services.
Principles - These represent your core values and tell your customers what your brand stands for.
Performance - This is the alignment between your company's goals versus your company's actual results.
Personas - These are a representation of your ideal customers. They help you to understand your ideal customer’s needs, wants, desires, behaviours and motivations.
The 12Ps of marketing will be discussed in more depth as part of our Marketing series blogs.
In summary, while creating marketing strategy, firms should consider the elements of a marketing mix. Thorough evaluation of these factors will enable a firm to create marketing strategies that successfully reach their target market.
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