How to Successfully Leverage the 4Ps of Marketing Mix?

Marketing Mix and 4Ps of Marketing

In 2017, Airbnb ran an email marketing campaign called “floating world.” The goal was to market some of their lovely water-themed houses. And consequently, houses where visitors could reconnect with nature. 

Stay above water” and “live the life aquatic with these floating homes” were among the lines used in the email. The email campaign was meticulously prepared long in advance. 

Seems like a pretty intelligent and harmless promotional tactic right? A good use of one of the marketing mix elements!

(Hint: Promotion, the 4th P of the marketing mix components) 

This campaign began on August 28, 2017, during Hurricane Harvey’s devastation of Houston. Undoubtedly, this outraged a lot of people.

The issue was with the time of the email’s release. There would have been no problem if Airbnb had delayed the launch of this marketing campaign even by a couple of months or so. 

Therefore, it is important to time your brand’s promotions and advertising campaigns.

But How?

The answer lies in the concept of marketing mix and 4Ps of marketing. 

So, without further ado, let’s learn about the marketing mix, marketing mix elements and how you can leverage the 4Ps of the marketing mix. 

Table of Contents

  • What is Marketing Mix?
  • What are the 4Ps of Marketing Mix?
    • Product
      • Product Marketing Mix
      • Important Product-Related Concepts to Keep in Mind To Build A Better Marketing Mix Strategy
    • Price
      • Price Marketing Mix
        • Important Price-Related Concepts to Keep in Mind To Build A Better Marketing Mix Strategy
    • Promotion
      • Promotion Marketing Mix
        • Important Promotion-Related Concepts to Keep in Mind To Build A Better Marketing Mix Strategy
    • Place
      • Place Marketing Mix
        • Important Promotion-Related Concepts to Keep in Mind To Build A Better Marketing Mix Strategy
  • Endnotes

What is a Marketing Mix? 

Marketing mix is a conceptual framework that outlines the key decisions that managers make when customizing their services to meet the needs of their customers. 

Marketing connects a company’s capabilities with its customers’ desires. For decades, the marketing mix has been a tool for effective marketing. It refers to the company’s utilization of a variety of marketing decision variables to advertise its goods and services.

In Simple Words…

The marketing mix is similar to the process of baking cakes. Depending on the type of cake a baker wants to make, the amounts of ingredients in a cake will change. You can tweak the marketing mix strategy depending on your product.

What are the 4Ps of Marketing Mix?

Product, Price, Promotion, and Place are the four elements that make up the marketing mix. Every business has the ability to leverage the marketing mix elements and develop a reliable marketing plan. Let’s learn about these in detail. 

1. Product

A product is a physical object or service for which a consumer is willing to pay. Consumers buy tangible goods such as furniture, clothing, and groceries, as well as intangible stuff such as services. Any marketing mix’s most important component is the product.

Any marketing mix's most important component is the product.
Any marketing mix’s most important component is the product.

Product Marketing Mix 

All marketing efforts begin with the creation of a product or service. A product is a collection of various characteristics. Including physical criteria such as design, color, packaging and performance etc. As well as non-physical factors such as quality, value and so on. Product planning entails a number of firm decisions one must make in order to introduce the product to market.

Important Questions to Contemplate:
  • Why would consumers choose your product or avail your services over the ones offered by your competitors? 
  • What are the problem that your product or service can solve?
  • What draws customers to your product or service?
  • Does your product or service provide a good value and experience to your customers?
  • Design – In today’s world, design is crucial to attract attention, focus it on the product, and influence customers’ buying decisions.
  • Technology – It should be used to produce user-friendly new goods that are unique from the competition.
  • Utility – Product differentiation in the market is established by improving the utility of a product.
  • Value – A high-performance product should be designed that meets or surpasses a client requirement for a product’s performance.
  • Convenience – The product should make the customer’s life easier.
  • Quality – It attracts customers since everyone wants a high-quality product or service.
  • Packaging – It is used to increase the perceived value of a product.
  • Branding – It usually guarantees excellent or at least constant quality, resulting in recurrent purchases.
  • Warranties – It assures the client of after-sales service, guaranteeing the consumer of the product’s longevity. 

2. Price 

The price is the cost paid by a consumer for a product. The cost of the goods, the marketing plan and its charges connected to distribution, marketing expenses, or any form of price variation in the market are all key factors in pricing.  

Prices should be flexible to accommodate market fluctuations.
Prices should be flexible to accommodate market fluctuations.

Price Marketing Mix 

Since the price of a product is determined by a variety of factors and hence fluctuates frequently, pricing should be flexible in order to accommodate these fluctuations over time. Cost of materials, product differentiation, competitiveness, market share, and the perceived value of a product are all factors that influence it.

Important Questions to Contemplate:
  • What is the customer’s opinion on the product or service?
  • How does your product or service’s price compare to that of your competitors?
  • Are there any defined price points for the product or service?
  • Competitive Pricing

The approach is a method of determining the product’s competitive price. The marketers choose a competitive price approach in this case because they want to compete on the basis of better distribution, compelling marketing, and other considerations.

  • Skimming

Skimming is the strategy when the firm fixes the price of a product significantly high in contrast to related commodities. The skimming technique helps the company to quickly recover its costs by maximizing sales income.

  • Penetration Pricing

This refers to setting the price of a product cheap in comparison to similar items in the hopes of capturing a large market. It ultimately allows the company to raise the price of its product in future.

  • Psychological Pricing

Since it is practiced all around the world, marketers believe that certain prices are more tempting to purchasers than others and this type of image pricing is frequently created. Retailers use price tags like ‘19.95, ‘69.98, or ‘9.99 to create psychological pricing.

  • Cost-plus Pricing

Under this, certain businesses aim to maximize their earnings by charging exorbitant prices for their products. Every business has its own pricing goals. It is a method of cost-based pricing in which the business can combine all costs connected with selling a commodity in the market together. These might include charges for production, shipping, distribution, and marketing, as well as a profit margin.

3. Promotion 

One of the most powerful components of the marketing mix is promotion. Publicity, public relations, exhibitions, and demonstrations are examples of promotional activities. In short, promotion helps in effectively representing the product to customers and persuading them to buy.

Sales are one of the finest promotional strategies.
Sales are one of the finest promotional strategies.

Promotion Marketing Mix 

The goal of promotional activities is to communicate with and persuade the target market to purchase the company’s products. Secondly, it is one of the most significant competitive weapons for maintaining industry dynamism. Lastly, the product’s positioning in the target market is determined by the promotion mix. 

Important Questions to Contemplate:
  • What strategy will you use to reach out to your intended audience?
  • When is the best time to launch a new product or service in the market?
  • What channels will you use to reach out to your target market with marketing messages?
  • What marketing techniques does your competitor use to promote their product? Does this have an impact on your own marketing efforts?
  • Sales Promotion

Offers like buy-one-get-one-free, coupons, discounts, free gifts and so on are examples of special offers. Furthermore, user trials persuade clients of the product’s benefits. 

  • Endorsements

Consumers follow their role models and celebrities. Therefore, endorsements can prove to be beneficial for product promotion and a shift in consumers’ mindsets. 

  • Advertising

Advertising is an important mode of communication. Therefore, ultimately used to raise awareness and disseminate information and attract the target market. Journals, magazines, television, movies, Ad labs, outdoor advertisements and newspapers are only a few examples of advertising modes and media.

  • Direct Marketing

It focuses heavily on database-based customer targeting. The potential consumer is targeted based on a number of characteristics, as is the case with all sorts of marketing. For instance, various agencies collaborate to create highly targeted messages in the form of emails. The mail is addressed to potential clients, and the answers are carefully tracked. Furthermore, leaflets/posters are a kind of direct communication that effectively conveys product information to customers.

4. Place 

It is a method by which goods and services are carried from the service provider and producer to the consumer. Hence, it usually comprises distribution channels, warehouse facilities, modes of transportation, and inventory control management. 

Amazon is one of the biggest e-commerce website where consumer can purchase niche products.
Amazon is one of the biggest e-commerce website where consumer can purchase niche products.

Place Marketing Mix 

Physical distribution refers to the process of transferring products from the manufacturer to the customer. Distribution has a huge effect on the profitability therefore a firm should have an excellent supply chain and logistics management plan for distribution.

Important Questions to Contemplate:
  • What stores do your customers visit regularly to shop?
  • Are they looking for similar things on the internet or in local shops?
  • What social media platforms are they using?
  • Retail

Since they stock a variety of other products from various brands, retailers will have a much closer relationship with their customers. This will help the product to be accessible to the myriad of customers. Moreover, retailers frequently market and merchandise items and services as well. 

  • Wholesale

When compared to retail merchants, wholesalers frequently lower the price of a product. As a result, clients often feel satisfied after purchasing a product. Additionally, in order to enhance manufacturer sales, wholesalers produce their own brochures. However, wholesalers must be paid a percentage of the total sales proceeds.

  • Internet

Consumers usually purchase things online through websites such as Flipkart, Amazon, and eBay. The fundamental advantage of the Internet is that specific items may reach a large audience with low entry barriers because set-up expenses are relatively inexpensive. As a result, there has been a paradigm change in commerce and consumption via the Internet, resulting in a massive increase in e-commerce. 

  • Direct Sales

Any marketing that is done without the use of a distributor or intermediary is referred to as direct sales. In terms of marketing, this implies that the firm has direct contact with the customer. 

  • Multi-channel Distribution

It is particularly effective for gaining market share for various products and services, hence many manufacturers or providers use several distribution channels. 

Endnotes

The marketing mix’s four components are all intertwined. The demand for the product will be reduced when the price is raised, and fewer distribution sites will be necessary. On the other hand, the product USP may be such that the focus is entirely on building brand awareness, resulting in better product price. 

Ultimately, the entire marketing mix can lead to dynamic modeling based on customer feedback, in order to improve the product and consumer experience. 

Feel free to share your opinions in the comment section! You can also mention your experience of using marketing mix strategies and some tips for others to learn. 

If you wish to learn more about different marketing trends, strategies, tips and how-to guides, do check out our website for regular updates. 

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3 responses to “How to Successfully Leverage the 4Ps of Marketing Mix?”

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