To the untrained eye, the marketing of unrelated companies, such as Ikea, Dyson, and Expedia, bears no resemblance. What could be similar between a furniture retailer, a vacuum-cleaner manufacturer, and an online travel agency? When you look closely, however, you will notice that all of them have a strong market presence, and their marketing can be broken down into a list of specific activities. We will review these building blocks in detail. Show
The way these companies approach their cooperation with customers is based on what’s called a marketing mix which is a fundamental tool for any business. The marketing mix will help you achieve the company’s objectives and satisfy your customers. What is a marketing mix?Marketing mix is a set of critical elements used by a brand to build the company’s market presence. Although the Ps are interdependent, the marketing specialists can consider each component separately according to the industry and marketing strategy’s goal and then combine them to deliver the best value to the customers. Initially, the marketing mix consisted of four groups of variables which are product, price, place, and promotion. E.Jerome McCarthy introduced the model in 1960. In 1981, Booms and Bitner added three extra elements, including process, people, and physical evidence, that were more applicable for services marketing. A marketing mix can help you determine how to bring a new product to the market or test your current marketing strategy. With the help of the model, businesses can develop advantages, minimize drawbacks, improve competitiveness and adaptability and increase collaboration between departments and partners. Elements of the marketing mix: 4ps and 7psThe four Ps are the fundamental pillars of any marketing plan. Companies utilize the marketing mix to learn about the customers’ requirements, the ways their business satisfies these needs, and how they differentiate themselves from the competition.
ProductA product in the marketing mix is a physical good or service offered to the customers. It should satisfy the customers’ demand or be so attractive that buyers believe they need it. This will result in new demand. Even the best effort put in the other marketing mix components would be useless if the product does not achieve a minimum performance level. And vice versa, a product, which is better than the competition, will significantly improve your ability to sell it, as customers would be willing to buy from you rather than from competitors. To promote the product or service on the market, it is essential to determine the unique features that distinguish it from the competing offers. Moreover, it is necessary to decide what additional items may be sold in conjunction with it. The next step is to consider the life cycle and develop a plan for dealing with the product at every stage. This is needed to anticipate the challenges the customers may face once they buy a product and find solutions to their problems. The questions the company can ask to improve the product are the following:
PriceThe price of the product is the amount of money paid by the customers. Marketing specialists should compare the real and perceived value taking into account special discounts, competitors’ prices, and manufacturing costs. The price can influence the product’s image. A lower price makes a product more accessible to a wider range of clients, whereas a higher price attracts those who demand exclusivity. There are various types of pricing strategies that usually depend on the business plan. For example, according to the broad cost leadership strategy, the company can minimize production, research and development, and material expenses. This would result in charging the prices below the industry average and offering products of decent quality. Hence, your company can achieve higher revenue due to an increase in the volume of sales. When setting the price for the product, give the answers to the questions:
PlacePlace refers to the location where the customers can find, use or buy the product and the means for delivering it to consumers. When the business makes marketing decisions about the place, the company considers the best locations for sale and the ways to deliver the product to the market. The marketing decisions regarding the place also address logistics, transportation, online and offline inquiries, and locations of sales points. The primary business objective is to make the product accessible for the customers and promote it to the people motivated to purchase it. This can relate to offering the product in some physical stores or placing it online, on TV shows, or in movies to attract attention. The questions to take into consideration before choosing the location for selling your product are the following:
PromotionPromotion includes a range of different activities to make the customer aware of the product or service, such as advertising, public relations, interviews, word of mouth, personal selling, and others. Whether you’re selling B2B or B2C products, the purpose of promotion is to demonstrate the value of the product to potential customers and justify the reasons they need to pay a certain price. When making the marketing decisions about the promotion, the business needs to consider the budget allocated for the overall marketing mix. The marketers develop a message using information from the other three Ps to reach the target audience. It is also critical to determine the frequency of communication and the best channels to deliver the message. Here are some questions the company should answer to develop effective communication:
In addition to the traditional four Ps, there are three other components, including people, process, and physical evidence. PeoplePeople refer to the customers and employees who have a direct connection to your product or service. This component concerns how professionally staff executes the duties, how the employees are perceived by the clients, and how satisfied customers are with their interaction with your team. It is crucial that everyone who represents your organization and interacts with the customers be an expert with a thorough understanding of your product and how it can solve clients’ problems and improve their lives. So, besides studying your target market to understand the demand for your product, you need to employ the perfect candidates who can do their best to sell it. The following questions will help you to hire the best team:
ProcessProcesses are vital for delivering high-quality services to your customers. You need to plan your processes in detail to increase your business performance and efficiency. Make sure that your operations are seamless and smooth to reduce unnecessary expenses and improve customer satisfaction. The processes can include features that are consistent with your brand, such as the focus on environmental protection. The process maps will help you analyze the steps and understand whether the process needs improvements. For example, if you receive multiple client complaints about the same procedure, find what is going wrong and how to solve the problem. Consider the processes related to customer service, logistics, and digital partnerships as these points are crucial for online businesses. You can improve the processes by answering the questions:
Physical evidencePhysical evidence refers to the packaging, branding, shop interior, and other things the customers see when they consume or buy your product or service. If you are selling the product online, physical evidence concerns the visual aspects of your website or social media. The appealing design makes it easier for customers to recognize your brand and draw attention to certain qualities of your product. Besides, the packaging can contribute to customer education and brand promotion by including the instructions for using the product and a surprising element. To build compelling physical evidence, consider the questions:
Marketing mix examplesWe will analyze the extended marketing mix of the world’s leading companies to discover their formulas for success. Apple marketing mixApple's marketing is so good that it can turn its customers into loyal supporters who will wait in line for hours to receive each new product the company introduces.
Tesla marketing mixTesla produces high-performance electric vehicles and power storage systems. The company is famous for its emphasis on sustainability. Tesla's automobiles, engineering expertise, and focus on the transition to a sustainable transportation system set it apart from the competitors.
McDonald’s marketing mixMcDonald’s is one of the world-leading restaurants in the fast-food industry. The company’s marketing mix allows the brand to reach out to target customers all over the world and maintain the top position.
Netflix marketing mixNetflix is one of the world’s top streaming services. It offers various content, such as TV shows, documentaries, and movies. The massive advantage of the service is the absence of commercials.
How to define your marketing mix?We have discussed the core elements of the marketing mix and reviewed the examples. Now we will consider the simple steps to define your perfect marketing mix.
A well-developed marketing mix is one of the foundational factors of your company’s success. It will help understand what your business has to offer to the customers, develop a strong value proposition, plan and implement marketing initiatives and avoid unnecessary expenses. Which aspect of the marketing mix is concerned with how much a customer?In the marketing mix, the term “price” refers to the cost to the customer. This requires the company to analyze the product's value for the target customer.
Which aspect of the marketing mix is concerned with the distribution and delivery?The place element of the marketing mix is defining how and where the product is being sold. In these days of online purchasing, the place covers both the website and the physical distribution and delivery of the product once purchased.
Which of the following elements of the marketing mix is involved when marketers make their offering available when and where the customer wants it?After a firm has created value through a product and/or service, it uses the marketing mix variable—place—to make the product or service readily accessible to the customer when and where he or she wants it.
Which element of the marketing mix is responsible for communicating value to customers?Promotion encompasses the marketing mix variables associated with advertising and communicating product value to target market members. This includes advertisements on television, radio, magazines, and online. Communicating product value also involves sales promotions, public relations, and direct marketing.
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