The marketing mix deals with the way in which a business uses price, product, distribution and promotion to market and sell its product.
The marketing mix is often referred to as the “Four P’s” – since the most important elements of marketing are concerned with:
- Product – the product (or service) that the customer obtains
- Price – how much the customer pays for the product
- Place – how the product is distributed to the customer
- Promotion – how the customer is found and persuaded to buy the product
It is known as a “mix” because each ingredient affects the other and the mix must overall be suitable to the target customer.
- High-quality materials used in a product may mean that a higher selling price can be achieved
- An advertising campaign carried in one area of the country requires distribution of the product to be in place in advance of the campaign to ensure there are no disappointed customers
- Promotion is needed to emphasize the new features and benefits of a product
What makes for an effective marketing mix?
An effective marketing mix is one which:
- Meets customer needs
- Achieves marketing objectives
- Is balanced and consistent
- Creates a competitive advantage for the business
The marketing mix for each business and industry will vary; it will also vary over time.
For most businesses, one or two elements of the mix will be seen as relatively more important than the others, as illustrated below: