Understanding Marketing Mix: Definition, Concept, Goals, and Benefits
Marketing mix is one of the fundamental concepts in the world of marketing that is important for business people and marketers to understand. This concept has evolved over the years and remains relevant today.
This article will discuss in depth what marketing mix is, its purpose, benefits, and concepts related to it.
Definition of Marketing Mix
Marketing mix is a basic concept in marketing that refers to the combination of elements used by companies to promote and sell their products or services.
This concept was first introduced by Neil Borden in 1964, inspired by James Cullington's idea in 1948. Borden initially compiled a list of marketing mix elements consisting of 12 aspects.
However, this concept was later simplified and popularized by Jerome McCarthy in 1968 into four main aspects known as the 4Ps: Product, Price, Place, and Promotion.
Marketing Mix Concept
Here is a more detailed discussion of the concepts in the 4P marketing mix:
Product
A product is a good or service offered by a company to meet the needs or desires of consumers. It can be a physical product, service, or even an idea.
In developing a product, companies need to consider quality, design, features, brand name, packaging, and service.
- Quality: includes durability, reliability, precision, and ease of use of the product.
- Features: characteristics that complement the basic functions of the product.
- Design: the appearance and function of the product.
- Branding: a name, symbol, or design that identifies and differentiates the product.
- Packaging: a product container or wrapper that also functions as a marketing tool.
- Service: additional services that enhance the customer experience, such as a warranty.
It is important for companies to do extensive research before developing a product, because each product has a fluctuating life cycle.
Starting from the growth phase, maturity phase, to the sales decline phase.
Price
Price is the second important element in the marketing mix. Pricing is a decision that affects the profitability of the company.
Some factors to consider in pricing include:
- Costs of production and distribution
- Desired profit margin
- Competitor prices
- Customer perception of value
- Elasticity of demand
- Pricing strategy (e.g., skimming or penetration)
Place
Place refers to how the product is distributed and made available to consumers.
This includes the selection of distribution channels, logistics, sales locations, and accessibility of the product. In the digital age, “place” also includes online platforms and e-commerce.
Promotion
Promotion involves all communication activities that companies undertake to inform, persuade, and remind consumers about their products.
This can include advertising, sales promotions, public relations, personal selling, and direct marketing.
Over time, the concept of the marketing mix has evolved. Some marketing experts have proposed adding new elements.
One of the popular ones is the 7P concept, which adds three new elements:
People
In the 7P marketing mix concept, 'People' refers to all individuals involved directly or indirectly in delivering a product or service to consumers.
These include:
- Employees: especially those who interact directly with customers.
- Management: makes strategic decisions.
- Company culture: influences how employees interact with customers.
- Customers: can influence the perceptions of other potential customers.
Process
Involves the methods and workflows used to deliver the product or service. This includes:
- Ordering and payment systems
- Queue management
- Service standardization
- Customer complaint handling
Physical Evidence
The environment in which the service is delivered and the interaction between the company and customers takes place. Examples are:
- Facility design
- Equipment
- Employee uniforms
- Website
Another concept that has developed is the more consumer-oriented 4Cs. Robert F. Lauterborn proposed these 4Cs in 1990:
- Customer Solution: focuses on the customer’s needs rather than the product.
- Cost: considers the total cost of ownership to the customer.
- Convenience (Convenience): emphasizes ease of access for customers.
- Communication (Communication): emphasizes two-way dialogue with customers.
Marketing Mix Objectives
The main objective of the marketing mix is to create an effective and comprehensive marketing strategy.
By considering the four 4P elements, companies can:
- Position their products or services appropriately in the market.
- Attract target consumers.
- Create value for customers.
- Build competitive advantage.
- Increase sales and market share.
Quoted from Investopedia, the marketing mix can help organizations make strategic decisions when launching new products or revising existing products.
Benefits of the Marketing Mix
The application of the marketing mix concept provides various benefits for companies. Some of them are:
Better Financial Analysis
The marketing mix helps business people understand the flow of costs and revenues according to market conditions.
Good Resource Allocation
The next benefit of the marketing mix is that companies can allocate their resources more effectively.
Facilitating the Communication Process
This concept helps allocate responsibilities for each division with clear tasks.
Simplifying Marketing Strategy
The marketing mix simplifies and unifies various marketing activities into a more manageable framework.
Increasing Marketing Effectiveness
By considering all elements, companies can create a more effective and integrated marketing strategy.
The marketing mix is an important concept in planning and implementing a marketing strategy. By understanding and applying this concept well, you can create a more effective and integrated marketing approach.
However, flexibility in applying the marketing mix concept is very important. As technology advances and consumer behavior changes, you may need to adjust your approach.
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