1-4-3-The-Marketing-Mix

An introduction to the marketing mix

• The marketing mix (4Ps of marketing) provides a framework for businesses to create and implement successful marketing strategies

• The 4Ps represent the key elements of a marketing strategy: product, price, place, and promotion

• These four components work together to satisfy the needs and want of a target market while achieving the company’s objectives

• By understanding and manipulating the marketing mix, businesses can differentiate themselves from competitors

• The marketing mix is an essential tool for any company looking to maximise its marketing impact and achieve long-term success

The marketing mix

Promotion

• Promotion is an important element of the marketing mix as it plays a crucial role in generating customer awareness, interest and desire for a product/service

  • A business can communicate its value proposition to potential customers and differentiate itself from competitors

  • Promotion helps to build brand awareness and loyalty which can lead to repeat purchases and referrals

• The promotion element of the marketing mix includes a variety of promotional methods such as advertising, direct selling to potential customers, and public relations

Product

• The product design mix refers to the combination of elements that make up a product’s design

  • These elements include function, aesthetics, and cost 

• Balancing the elements of function, aesthetics, and cost, helps the product design to be both functional and attractive, while also being cost-effective for both the manufacturer and the consumer

  • Some manufacturers aim to balance all three elements e.g. Fentimans ginger beer is relatively affordable and is packaged in eye catching bottles and the product itself is very good quality

  • Other manufacturers may focus on one aspect, more than the others e.g. Asda’s own brand of ginger beer is produced at the lowest possible cost and sold to consumers at a very low price

  • Businesses must take care to balance customers’ quality expectations with these elements 

    • The target market may value quality less than price and will not be prepared to pay a high price for goods even if they are of the highest quality

• Developing a strong brand can help to differentiate a product or service from those offered by competitors and can help a business to add value as customers are often willing to pay higher prices for brand they recognize and trust 

Price

• By understanding their customers, competitors, and costs, businesses can set prices that maximise revenue and profitability

• Pricing can play a significant role in positioning the brand in the market and help a firm to compete effectively 

Place

• This refers to the physical location of the business and/or the journey (distribution) through which the product goes from the business to the end customer

• Choosing the most efficient location or distribution network will result in lowered costs and greater profits

The marketing mix in a competitive environment

• The marketing mix may change in a competitive environment, with businesses adapting their product, price, promotion, or place to differentiate themselves from competitors and attract customers

  • The specific elements that businesses change may depend on the industry, the competition, and the needs of their target market

How the marketing mix may differ in different competitive environments

• The competitive grocery market in the UK has seen the rise of smaller convenience stores in local neighbourhoods e.g Sainsbury Local and Tesco Express

  • The location of these stores is often the main factor in the marketing mix that attracts local customers

  • Convenience adds value and customers are often willing to pay more for much needed items (e.g. milk) which do not require a main supermarket shopping trip

• Many service based businesses such as Save My Exams or recruitment companies like The International Educator have set up as remote based company with their employees working from home

  • This reduces business costs and gives a competitive advantage over competitors who continue to incur office expenses

  • Facilities can be hired for company get togethers or essential business meetings

Changing the marketing mix in response to changing consumer needs

• The marketing mix should constantly be evolving as businesses respond to changing market conditions and feedback from their customers

  • E.g. A small bakery might introduce a home delivery service in response to customer requests

• Here are some examples of how changing consumer needs can impact each element of the marketing mix:

Price

• Changing consumer needs can also impact the pricing strategy of a business

  • E.g.During a recession, consumers may become more price-sensitive and shop around for more affordable options

  • Businesses may reduce prices or offer discounts to remain competitive

Product

• Businesses must adapt their products to changing needs

  • E.g.In (opens in a new tab) recent years there has been a growing demand for plant-based foods as more consumers adopt vegan or vegetarian lifestyles

  • This has led to the introduction of new products in the market, such as plant-based meat substitutes, which have been successfully marketed to this growing market segment

Promotion

• The way businesses promote their products can also change based on changing consumer needs

  • E.g. in recent years, there has been a significant shift towards digital marketing, as consumers increasingly rely on social media to inform their purchasing decisions

  • This has led to businesses investing more in digital marketing channels such as influencer marketing, to reach their target audience

Place

• Changing consumer needs can impact the way businesses distribute their products

  • E.g. The rise of e-commerce has made it easier for consumers to shop online and have products delivered to their doorstep

  • In response, many businesses have invested in their online presence offering convenience and fast delivery to cater to the needs of their customers

New technology and the marketing mix

• New technology has revolutionised each element of the marketing mix

  • Changes in e-commerce & digital communication have changed the way businesses create and distribute products

  • Changes in e-commerce & digital communication have changed the way businesses communicate with customers and set prices

• To remain competitive, businesses must continuously embrace the latest technology and adapt their marketing strategies accordingly

 How new technology impacts elements of the marketing mix