The Marketing Mix
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The Marketing Mix is a tool utilised by businesses to help shape their product or service offering. It is comprised of four key elements, commonly referred to as the “4 Ps”: Product, Price, Place and Promotion.
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‘Product’ refers to what the company is selling. This could be a physical item, a service or a digital product. It’s important that a business understands exactly what need or want their product is fulfilling for customers.
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‘Price’ relates to how much the product or service is sold for. This can depend on a variety of factors, including cost of production, competition, and perceived value. Businesses can employ different pricing strategies to maximise profits, such as cost-plus pricing, competitive pricing, or penetration pricing.
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‘Place’ refers to how the product is distributed to the customer. This could be directly, through a retail store, online or via a wholesaler. The choice of distribution method can significantly impact overall marketing strategy.
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‘Promotion’ involves raising customer awareness about a product or service. This can be achieved through various channels such as advertising, sales promotions, PR, and social media. An effective promotion strategy can help a business stand out from its competitors.
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The balance between these four elements is crucial for achieving marketing success. If one aspect of the mix is off, it can negatively impact the other components and the overall marketing strategy.
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The concept of the Marketing Mix is dynamic and flexible. Companies must constantly review and amend their marketing mix in response to changes in market conditions, consumer behaviour and business objectives.
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In addition to the traditional ‘4 Ps,’ some modern marketing models include three additional factors: People, Processes, and Physical evidence - often referred to as ‘Extended Marketing Mix.’
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‘People’ refers to all the individuals involved in the provision of your product or service - from the employees who make it, to the sales staff who sell it.
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‘Processes’ involve the methods and procedures used to deliver your product or service to customers - this affects the customer’s perception of your organisation.
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‘Physical evidence’ refers to everything the customers see when interacting with your business. For instance, the quality and layout of a store, your brand design, or even your website design.