The Marketing Mix

The Marketing Mix

Introduction

Setting the right marketing mix for the product or service means that it including all of the important bases in marketing strategy. The marketing mix is generally established as the use and requirement of the 4P’s which is describing the strategic position of a product in the marketplace. One version of the beginning of the marketing mix starts in 1948 when James Culliton said that a marketing decision should be a result of something related to a methods and he described the marketing manager as a “mixer of ingredients”.

In 1953, Neil H, Borden took that theories in his teaching. The term "marketing mix" became popularized after Borden published his article, The Concept of the Marketing Mix in 1964. Borden's marketing mix which including product planning, pricing, branding, distribution channels, personal selling, advertising, promotions channels, packaging and other factors

Overall that information, a business firm controls four important elements of marketing that it combines in a way that reaches the firm’s target market. These are depended on the Product itself, the Price of the product, the means of the selection for its Place, and the Promotion of the product. When combined, these four elements form a marketing mix (see Figure 2.1).

A firm can contrast its marketing mix by changing any one or more of these elements. Therefore, a firm may use one marketing mix to reach one target market (a group of individuals or organizations which a firm develops and maintains a marketing mix suitable for the specific needs and preference of that group) and different marketing mix to reach another target market. For example, most computer technician produce several different types and models of computer an d aim them at different market segments (a group of individual or organization within a market that share one or more common characteristics) based on age, income, sex, education, race and other factors.

(Figure 2.1)

(http://en.wikipedia.org/wiki/4P)

(Business,Libraryediton,seventhedition,houghtonmifflin)

The 4 P's of Marketing

How much to offer? What price to offer? Where to offer and how to offer? These 4 are the necessary questions to which the business must find an answer and make the decision on it. These 4 P's relate the strategic positioning so that the returns are the maximum in any specified market. The mix is also used to refer to the combination of the media for the promotion such as means of communication and television, newspaper and magazines, advertising on billboards and the Internet.

Its goal is to make decisions that aim the four P's on the customers in the target market in order to generate perceived value and a positive response from customers. Marketing decisions generally include the following four controllable categories:

Product

Nowadays, there are a lot more services available, such as those available online. Also, the characteristic between product and service has become more complicated (e.g., Web-based software application is a product or a service?). However, product here refers to products or services. The product or service features which should able to meet a specific, existing market demand. Or, it should be able to create a market position through building a strong brand.

The term "product" refers to tangible, physical products as well as services. A product is everything one receives in an exchange, including all tangible and intangible attributes and expected benefits

Product decisions include the following such as function, product outlook, packaging, service and after sale service, warranty, etc. For example, when McDonald’s decides on brand names, package designs, sizes of orders, flavors or sauces, and recipes, these choices are all part of the product ingredient.Here are some examples of the product decisions should be included:

пЃ¬ Brand name

пЃ¬ Functionality

пЃ¬ Styling

пЃ¬ Quality

пЃ¬ Safety

пЃ¬ Packaging

пЃ¬ Repairs and Support

пЃ¬ Warranty

пЃ¬ Accessories and services

The product is definitely very important and the success of the business will depend largely on how good or bad it is. The decision as to the character of the product also has to depend on its customer base as also their buying habits, geographical locations, purchasing power ( purchasing refer to all the activities involved in obtaining required materials, supplies, and parts from other firms. Purchasing power refer to how much they can effort) and other factors. Sometimes a business may want to approach the best there is, and sometimes the same business might market a product that is for the budget customer.

Price

The pricing for the product or service is acting a large role in its marketability. Pricing for products or services that are more generally available in the market is more elastic, meaning that unit sales will increase or decrease more directly in response to price changes. For example, those products that have a generally more limited availability in the market which have a strong demand are more inelastic, meaning that price changes will not affect unit sales very much. The price elasticity of the product or service can be determined through various market testing techniques.

Pricing decisions should consider the profit margins and the reasonable pricing response of competitors. Pricing is not only included the list price, but also discounts, financing, and other methods.. Here are some examples of pricing decisions should be included:

пЃ¬ Pricing strategy (skim, penetration, etc.)

пЃ¬ Suggested retail price