• Marketing mix is the mixture of essential elements of marketing in order to enhance satisfaction.• Marketing mix offers an optimum combination of all marketing elements so that we can achieve company goals such as profit, return on investment sales volume, and marketing shares and so on.• It naturally changes the environmental factors such as technical, social, economic, political and competition.
CHARACTERISTICS OF MARKETING MIX.• Marketing mix is the crux of the marketing process.• Marketing mix has to be reviewed constantly in order to meet the changing requirements.• Changes in the external environment necessitate alterations in the mix.• Changes taking within the firm too necessitate changes in the marketing mix.
FACTORS AFFECTING MARKETING MIX Factors affecting the marketing mix• Consumers behavior.- It is determined by consumers motivation in purchasing, buying habits, living habits, buying power.- Technical and socio-economic development of the society also brings changes in consumers behavior.• Competitors behavior- Competition is another factor affecting the demand and supply for the product. Major factors included in competitors behavior are-• Size and strength of the competitors.• Number of competitors.• Product choices offered to the consumers.
Factors affecting the marketing mix- Government exercises control and regulates the production and pricing of products, advertising and sales promotion.- The management should consider the consider the government laws and policies while formulating the marketing mix.
PRODUCT• A product is anything which can satisfy a need, want or desire of consumers and can be offered in an exchange process.• Hence a product can be a commodity, service, idea or a combination of all this.• Therefore a product can be any of the following-• a material product• an intangible service• a location• a person• an idea
Essential attributes of a product• Tangibility• Intangible attributes• Exchange value• Consumer satisfaction
PRICE• Price is the value that the company expects to get from customers in return of the product or the service the company is providing to the customer.• Price is what the company gets back in return for all the effort that it puts into manufacturing and marketing the products.• The other three elements of marketing mix i.e., product, promotion and distribution incur cost.• Both undercharging and overcharging have detrimental effects on profitability.
FACTORS AFFECTING PRICING DECISIONSFactors affecting pricing decisions are divided into twogroups• INTERNAL FACTORS• EXTERNAL FACTORSInternal factors• Product differentiation- Price of the product depends upon the characteristics of the product
Internal factors• Marketing mix- Marketing experts view price as only one of the main important elements of marketing mix.• Cost of the product- Cost and price of a product are closely related.- Most important factor is the cost of production.• Objectives of the firm- Pricing contributes its share in achieving the objectives ofa firm.
External factors• Demand- Exists a close relationship between demand and price.• Economic conditions- Economic environment of a country also affects the pricing decisions of a country.• Government- Government policies in the form of taxes and pricefixation also affects pricing decisions.
External factors• Suppliers- Suppliers of raw materials and other goods also affects theprice of a product.
PLACE Place or its more common name is“Distribution”is about how a business gets its products to customers. It is to make products available in the right place at the right time in the right quantities. After deciding the product, price, promotion methods the business needs to get the product to the consumer. Where consumer can buy the product will depend on how well it will sell. Business have to decide where to sell their product. They also have to decide how products gets to the consumer.
PROMOTION• Promotion is any communicative activity whose main objective is to move forward a product, service or idea in a channel of distribution.• Sales do not take place automatically without promotion or marketing communication.• Therefore in essence, Promotion is the spark plug In marketing mix.• The promotion is the process of marketing communication involving information, persuasion and influence.
PROMOTION Promotion has three specific purposes-• It communicates marketing information to consumers, users and sellers.• Promotion persuades and convinces the buyer and enters into consumer behavior.• Promotional efforts act as powerful tools of competition providing the cutting edge of its entire marketing program.
PROMOTION ELEMENTS OF PROMOTION MIX• Personal selling- Oral presentation of goods or services.- It is the conversation with one or more prospective customers for the purpose of making sales.- It is the creation of demand for product through sales representations.• Advertising- It is the paid form of impersonal presentation andpromotion of ideas, goods or services by an independentsponsor.
PROMOTION ELEMENTS OF PROMOTION MIX• Sales promotion.- Marketing activities other than personal selling, advertising and publicity that stimulates consumer purchasing and dealer effectiveness are known as sales promotion. For instance- rebate, price off, premium offer.• Publicity.- Creates awareness among the potential customers. For instance- News items about a business is an exampleof publicity.
PROMOTION ELEMENTS OF PROMOTION MIX• Public relations.- Now a days, most of the companies maintains aseparate public relation department to maintainrelationship with the public i.e., suppliers, dealers,customers and government agencies.
conclusion• This traditional four p’s of marketing mix helps in satisfying or communicating with customers.• The notion of mix implies that all the variables are interrelated and dependent on each other.• Lastly marketing mix is an important ingredient in promoting the different market segments to further extent.