Marketing is composed of three distinct elements.
I. Research: Understanding what customers (or potential
II. Product Development: Creating products, services and
experiences that satisfy those desires
III.Communication: Letting customers know that your products and
services will satisfy their desires
The term 'marketing mix' was first used in 1953 by Neil
Borden, in his American Marketing Association
A prominent marketer, E. Jerome McCarthy, proposed a 4
P’s. classification in 1960, which has seen wide use.
A. The 'marketing mix' is a foundation concept in marketing.The
marketing mix has been defined as the "set of marketing tools that
the firm uses to pursue its marketing objectives in the target
B. The marketing mix definition is simple. It is about putting the
right product or a combination thereof in the place, at the right
time, and at the right price.The difficult part is doing this well, as
you need to know every aspect of your business plan
in the mind of
Collection of features
and benefits that
Product is the actually offering by the company to its targeted
customers which also includes value added stuff. Product may be
tangible (goods) or intangible (services).
For many a product is simply the tangible, physical entity that they may
be buying or selling.
While formulating the marketing strategy, product decisions include:
What to offer?
After sale services
Price includes the pricing strategy of the company for its products.
How much customer should pay for a product? Pricing strategy is not
only related to the profit margins but also helps in finding target
customers. Pricing decision also influence the choice of marketing
Price decisions include:
Pricing Strategy (Penetration, Skim, etc)
Using price as a weapon for rivals is as old as mankind, but it’s risky
too. Consumers are often sensitive for price, discounts and additional
offers. Another aspect of pricing is that expensive products are
considered of good quality.
It not only includes the place where the product is placed, all
those activities performed by the company to ensure the availability
of the product tot he targeted customers. Availability of the product at
the right place, at the right time and in the right quantity is crucial in
Placement decisions include:
selection of channel members
There are many types of intermediaries such as wholesalers, agents,
retailers, the Internet, overseas distributors, direct marketing (from
manufacturer to user without an intermediary), and many others.
Promotion includes all communication and selling activities to
pursuade future prospects to buy the product. Promotion decisions
The elements of the promotions mix are integrated to form a
coherent campaign. As with all forms of communication.
As these costs are huge as compared to product price, So it’s good
to perform a break-even analysis before allocating the budget. It
helps in determining whether the new customers are worth of
promotion cost or not.