Marketing decisions generally fall into the followingfour controllable categories: Product Price Place (distribution) PromotionThe 4 p’s of Marketing
The 4 p’s of MarketingThe term "marketing mix" became popularized after Neil H.Borden published his 1964 article, The Concept of theMarketing Mix. Borden began using the term in his teaching inthe late 1940s after James Culliton had described themarketing manager as a "mixer of ingredients". The ingredientsin Bordens marketing mix included productplanning, pricing, branding, distribution channels, personalselling, advertising, promotions, packaging, display, servicing,physical handling, and fact finding and analysis. E. JeromeMcCarthy later grouped these ingredients into the fourcategories that today are known as the 4 Ps of marketing,
The 4 p’s of MarketingProduct DecisionsThe term "product" refers totangible, physical products as well asservices. Here are some examples of theproduct decisions to be made: Brand name Functionality Styling Quality Safety Packaging Repairs and Support Warranty Accessories and servicesPrice DecisionsSome examples of pricing decisions to bemade include: Pricing strategy (skim, penetration, etc.) Suggested retail price Volume discounts and wholesale pricing Cash and early payment discounts Seasonal pricing Bundling Price flexibility Price discriminationThese four Ps are the parameters that the marketing manager can control, subjectto the internal and external constraints of the marketing environment. The goal is tomake decisions that center the four Ps on the customers in the target market inorder to create perceived value and generate a positive response.
The 4 p’s of MarketingDistribution (Place) DecisionsDistribution is about getting the productsto the customer. Some examples ofdistribution decisions include: Distribution channels Market coverage(inclusive, selective, or exclusivedistribution) Specific channel members Inventory management Warehousing Distribution centers Order processing Transportation Reverse logisticsPromotion DecisionsIn the context of the marketingmix, promotion represents the variousaspects of marketing communication, thatis, the communication of informationabout the product with the goal ofgenerating a positive customer response.Marketing communication decisionsinclude: Promotional strategy (push, pull, etc.) Advertising Personal selling & sales force Sales promotions Public relations & publicity Marketing communications budget
Limitations of the Marketing Mix FrameworkThe marketing mix framework was particularly useful in the early days of the marketingconcept when physical products represented a larger portion of the economy.Today, with marketing more integrated into organizations and with a wider variety ofproducts and markets, some authors have attempted to extend its usefulness byproposing a fifth P, such as packaging, people, process, etc. Today however, themarketing mix most commonly remains based on the 4 Ps. Despite its limitations andperhaps because of its simplicity, the use of this framework remains strong and manymarketing textbooks have been organized around it.