marketing mix product essay

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Marketing Mix, Essay Example

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Marketing decisions made by a company when shaping a suitable proposition for the potential customer can be organized into four major groups. These are Product, Price, Place and Promotion. The actual meaning of those four is creating the right product, selling it at the right price and in the right place, with the use of the most effective promotion possible. When being in the process of bringing some particular product to the market, the organization is supposed to make choices concerning the product that will eventually influence the effectiveness of a chosen strategy. The four P’s are a sort of parameters that are under marketer’s control. “The goal is to make decisions that center the four P’s on the customers in the target market in order to create perceived value and generate a positive response” (Net MBA Business Knowledge Center).

The term ‘Product’ refers to both tangible physical goods and services. The choices that are made concerning the product can be: brand name, design, functionality, protection, maintenance, packaging, guarantee, accessories and services. To define what the product is supposed to represent questions may be asked like: What does the consumer want from the product/service? What requirements does it satisfy? What characteristics is it supposed to have to meet customers’ requirements? How and where will the customer exercise it? What does it look like? How is it different from the one product of your competitors?

The term ‘Price’ refers to the choice of appropriate approaches to forming the actual price of the product. It is no secret that each person pays a lot of attention to the price of the product being bought. Each customer weights benefit the product is to bring versus its cost in order to make a wise decision. It is also important to mention that while all the other three aspects of marketing mix are costs, price is the only one which creates sales revenue. Investigating consumers’ attitude toward pricing is significant since it specifies how they value what they are looking for, as well as what they would like to pay for it. Naturally, company’s pricing policy depends a lot on the circumstances in which the organization is operating. The possible decisions marketer is making concerning the price are: pricing strategy (demand-, cost-, profit- or competition- based methods), suggested retail price, volume discounts and wholesale pricing, seasonal pricing, bundling, price flexibility and discrimination, etc. The questions that can be asked in order to understand the pricing element better are: What is the value of the product or service to the purchaser? Is the client price sensitive? What discounts should be proposed to customers, or to other particular segments of your market? How will your price contrast with that of your competitors?

‘Place’ element of the marketing mix is the one being concerned with a range of methods of transferring and storing goods, and then making them accessible to the consumers. Significantly, approximately a fifth of the product’s cost goes on its distribution. What value do product’s exceptional features have if it is stored badly, or if the potential customers have no way to get it? Delivering the right product to the proper place at the right time requires creation of a distribution system. Once again, the choice of convenient distribution methods depends greatly on present circumstances.  When referring to ‘place’ marketer has to make decision on distribution channels and centers, transportation, warehousing, order processing, etc. Understanding of this particular element of the marketing mix can be obtained if giving answers to such questions as:  Where do buyers search for your product or service? In what kind of stored do they look for the product? How can you contact the appropriate distribution channels? What do you competitors do, and how can you benefit from that?

‘Promotion’ refers to the actual process of communicating with consumers. It is concerned with presenting customers with information needed to make a decision. The fact is that, even though being sometimes extremely costly, promotion can increase the sales significantly, so that advertising and other costs are spread over a larger output. If being properly organized and successfully implemented, promotion can be extremely cost-effective. Promotion is aimed at generating the positive customers’ response and deals with decisions on promotional strategy, advertising, public relations and publicity, sales promotions, marketing communication budgeting, etc. These are the questions that can be helpful when defining this particular element of marketing mix: Where and when can one get across your marketing messages to the target market? How will you reach your audience in the most effective way possible? When is the best time to promote? Is there seasonality in the market? How do your competitors promote their product and how can it influence your promotional strategies?

Such a great profit-oriented company as Nike, which is the global sports shoe company and is the largest seller of athletic footwear in the world, does surely pay a lot of attention to the development of its marketing mix. If referring to the ‘product’ element of Nike’s company, we can talk about how Nike proposes broad choice of shoe, apparel and equipment products. The company also market head gear under the brand name Sports Specialties. Nike’s pricing is considered to be competitive to the other sport shoe sellers. The pricing is established on the basis of premium segment as target customers. Nike shoes are available all over the world in the multi-brand and the exclusive Nike stores. “Nike sells its product to about 20,000 retail accounts in the U.S. and in almost 200 countries around the world. In the international markets, Nike sells its products through independent distributors, licensees and subsidiaries” (Cuizon, 2009). Nike’s promotion is greatly concerned with finding reachable store locations. It also involves targeted advertising in the newspaper and generating strategic associations. For example, Nike cooperates with a number of famous athletes that serve as brand representatives. Nike’s brand image, name and the trademark swoosh, position the company as one of the most identifiable brands in the world.

Adidas, Nike’s biggest competitor, is also one of the most recognizable brands of nowadays. As well as the Nike Company is, Adidas is oriented to obtaining high profits. Nowadays Adidas has a reputation of a strong brand for sports apparels. The company supports its brand by continually advancing and improving products’ original features and quality to please and satisfy its customers. If referring to Adidas pricing policy, it uses the market skimming method, positioning itself as a shopping product with prices lower than that of its major competitors. Adidas sportswear can be found in specialized brand stores, sporting outlets and in the internet. Company’s major promotion objective is to become world number one sportswear company. Promotion is implemented mostly through advertising in the mass-medias and internet, and through supporting various sport events.

Cuizon, G. (2009, February 13). Audit on Nike’s Marketing Strategies: The 4Ps – Product, Price, Place and Promotion. Retrieved July 6, 2009, from http://corporate-marketing-branding.suite101.com/article.cfm/audit_on_nikes_marketing_strategies

Net MBA Business Knowledge Center. (2007). The Marketing Mix (The 4 P’s of Marketing) . Retrieved July 6, 2009, from http://www.netmba.com/marketing/mix/

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7Ps of the Marketing Mix

A marketing strategy is a company’s battle plan in the struggle of market competition. However, its task is in effect to outline the way the company plans to act in the market, which is made in a general way. To realize the marketing strategy, a company develops a marketing mix, which is a set of marketing tools used to influence the demand for the product (Kotler et al 2008, p.49). The first formula of the marketing mix included four elements, so-called 4Ps, which were: Product, Price, Place, and Promotion. Gradually the notion of the marketing mix has been extended to 7Ps by adding such elements as Processes, Physical Evidence, ad People (Schneider & Bowen 1998, p. 213).

Product is a service produced by the company; it can be tangible or intangible, produced on a large scale or individually. Each product has its life cycle, which includes the stages of development, introduction, growth, maturity, and decline (Kurtz, MacKenzie & Snow 2009, p.341). Each of the stages requires specific marketing decisions. Another important point is a product’s competitive advantage, which also defines the product’s marketing: it helps to expand the company’s market segment and to increase the price.

Price is not simply the cost of the product for the buyer; it is a point of communication between the producer and the customer. Price defines the product’s position in the market, informing the client about its quality and originality. Depending on a good’s parameters and the life cycle stage, different pricing strategies can be used (Bangs 2002, p. 72): premium pricing (high quality or unique products), penetration pricing (lowering the price when entering the market), economy pricing, and price skimming (the product is new or has a strong competitive advantage). There are also some alternative approaches, such as psychological pricing ($99 instead of $100), optional product pricing (setting price for the additional services), etc (Armstrong et al 2009, p. 328).

The element of Place outlines the approach of the product’s distribution and includes the distribution chain which delivers the product from the manufacturer to the customer (Kotler et al 2008, p. 50). The product can be sold directly to the customer or the dealer; the shop can be physical or virtual. The place is defined according to the peculiarities of the product sold.

Promotion is a set of tools that help to communicate to the client, which is to attract his attention, provide information about the product, and stimulate the decision to buy. The company can use such tools as direct selling, personal selling, public relations, advertising, sponsorship, etc. As a rule, they are used in complex (p.51).

Schneider and Bowen emphasize the meaning of the last 3Ps: these factors help to overgrow the marketing of products and services and embrace marketing of the whole organization with its attributes, such as people, tangibles, etc. (1998, p. 213).

The component of People includes the company’s staff with its skills and knowledge. The staff which has appropriate interpersonal skills and attitude to the work, as well as the professional competence, creates an additional competitive advantage, becoming a face of the company.

Processes also make the company competitive, increasing the customers’ loyalty. They include efficient service delivery which meets the needs and requirements of the clients, for ex., preparing a burger the way a client wants (Strydom 2005, p. 196).

Physical Evidence implies taking care of the services’ performance which influences the judgments about the company. Providing a clean environment of the restaurant or comfortable accommodation for the college students, as well as the website and brochures about the company’s service or a logo at the ticket, are examples of this element (Strydom 2004, p. 197).

Some attempts to extend 7Ps to 9Ps take place (Dacko 2008, p. 335); however, the additional elements are disputable: for example, Packaging can be considered a separate element or be included in the category of the Product, and Professionalism can be combined with People.

• Armstrong, G et al 2009, Marketing: an introduction. Harlow, England, Financial Times Prentice Hall.
• Bangs, DH 2002, The market planning guide: creating a plan to successfully market your business, product, or service. Chicago, Dearborn Trade Pub.
• Dacko, SG 2008, The advanced dictionary of marketing: putting theory to use. Oxford; New York, Oxford University Press.
• Kotler, P et al 2008, Principles of marketing. Upper Saddle River, N.J., Pearson Prentice Hall.
• Kurtz, DL, MacKenzie, HF & Snow, K 2009, Contemporary marketing. Toronto, Nelson Education.
• Schneider, B & Bowen, DE 1998, Winning the service game. Boston, Mass., Harvard Business School Press.
• Strydom, J 2004, Introduction to marketing. Lansdowne, Cape Town, S.A., Juta.

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Product Marketing Essay Examples & Topics

Product marketing is the process of taking a product and launching it into a market. This process takes place in the beginning of a product’s life cycle. Product marketers have to understand the product and the customers that it will reach.

Introduction of a new product consists of five steps.

The first step is discovery, where specialists conduct research. The next stage is planning: the team comes up with an effective marketing strategy. It is followed by definitions, where the customers are identified. Then it is time for the preparation stage, where campaigns are developed. Finally, the product launches, and it is time to monitor it to ensure its growth.

In your product essay, you might want to focus on product marketing strategy development. Another option is to discuss the essential product management issues. Want to know more about how to promote a product? Essay examples, topics, and writing tips are collected here. In this article, our IvaPanda experts have broken down how to write a successful product marketing essay. We listed some advice on how to describe any item that needs to be marketed and sold. Furthermore, on the page, you will also find product essay examples.

Write an A+ essay about product marketing with us!

Product Essay: Writing Descriptions 101

To sell a particular product, you have to advertise it effectively. If you are studying marketing, you are very aware of that fact. However, you should also be mindful of writing a clever description of the item you’re advertising. An accurate and complete product description leads to the selling of a product. Essay examples analyzing such advertisements can be found below. Here, we will explore how to describe a product correctly.

Here are some ground rules:

• Determine your audience.

Before you can begin selling your item, you need to know to whom you’re selling it. Promoting a product cannot be accomplished without identifying your target audience. To do this, you need to get into the heads of your customers. Think of their interests, why they want your product, which features they would pay most attention to.

• Think of the product’s benefits.

With your buyer in mind, imagine what parts of your product are of the utmost importance. This will be the basis for your product promotion. Your audience needs to know how you can improve their lives. Mention the quality of the product and its unique selling point.

• Try a story-telling technique.

The days of personal selling door-to-door are over. Yet, you can still try to appeal to your customers. Their emotions will still influence their purchase, so try to call to them by being as precise as possible. Mention all the features that will be relevant. Ensure that you allow them to visualize their experience with the product.

• Work on the wording and tone.

Your sales letter needs to sound convincing but not overbearing. Try being as natural as possible in your wording, as though you’re working retail and selling the product face-to-face. At the same time, don’t shy away from using powerful words. Make sure your phrasing will elicit a strong emotional response from your audience.

• Make sure it’s easy to skim.

In the day and age of social media, people are surrounded by information. There isn’t enough time in the world to absorb it all. So, ensure that your description is easy to skim. Keep your introduction and conclusion short, use bullet points, and break your text into paragraphs. Our summarizer tool can help you see your essential arguments.

• Add keywords and images.

Remember to review your text to check that it is optimized for search engines. After all, that is how most people will stumble upon it! Make sure to add decent, quality images that capture your product design. They are just as important as the full item description.

How to Write an Essay about a Product

Even if you have read through different examples of essays about products and marketing in general, you might still have questions. For example, how do you create a correct paper structure? What is product-market research? Should you include it in your essay? In this section, see how to start your marketing essay.

Here are some tips on how to write an essay about a product:

• Introduce the product. This is the stage where you develop a relationship with your reader. Show your audience that you understand them and start to familiarize them with your item. They don’t have to know the history of the product development – just the context.
• Address the problem. In other words, formulate your thesis statement. Think of an issue that you could describe. Or consider ways to improve your product. You can approach this through tools such as marketing mix. Our thesis generator can help you formulate it.
• Describe the product in question. In the body of your essay, you need to capture the essence of your item. You can think about it in terms of a product launch. How do you sell it to the customers? Be specific, and don’t forget who your audience is.
• Evaluate the product’s features. Imagine what kind of service or benefit your readers might receive from it. Don’t forget to mention key details. For example, imagine you’re talking about a local product. Acknowledge a few different alternatives available on the market to validate your research.
• Conclude your assessment. To round up your essay, deliver your final verdict on the product. Mention whether you think the price-to-quality ratio is worth it. Your product essay has to be valuable to those who read it, so be candid and thoughtful.

Thank you for reading! We wish you all the best with your paper. Now, you can proceed to read our examples of essays about product below.

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11.3 Developing a Marketing Mix

• What is the marketing mix?

Once a firm has defined its target market and identified its competitive advantage, it can create the marketing mix , which is based on the 5Ps discussed earlier, that brings a specific group of consumers a product with superior value. Every target market requires a unique marketing mix to satisfy the needs of the target customers and meet the firm’s goals. A strategy must be constructed for each of the 5Ps, and all strategies must be blended with the strategies of the other elements. Thus, the marketing mix is only as good as its weakest part. For example, an excellent product with a poor distribution system could be doomed to failure. An excellent product with an excellent distribution system but an inappropriate price is also doomed to failure. A successful marketing mix requires careful tailoring. For instance, at first glance you might think that McDonald’s and Wendy’s have roughly the same marketing mix. After all, they are both in the fast-food business. But McDonald’s targets parents with young children through Ronald McDonald, heavily promoted children’s Happy Meals, and in-store playgrounds. Wendy’s is targeted to a more adult crowd. Wendy’s has no playgrounds, but it does have flat-screen TVs, digital menu boards, and comfy leather seating by a fireplace in many stores (a more adult atmosphere), and it has expanded its menu to include more items for adult tastes.

Product Strategy

Marketing strategy typically starts with the product. Marketers can’t plan a distribution system or set a price if they don’t know exactly what product will be offered to the market. Marketers use the term product to refer to goods, services , or even ideas. Examples of goods would include tires, MP3 players, and clothing. Goods can be divided into business goods (commercial or industrial) or consumer goods . Examples of services would be hotels, hair salons, airlines, and engineering and accounting firms. Services can be divided into consumer services, such as lawn care and hair styling, or professional services, such as engineering, accounting, or consultancy. In addition, marketing is often used to “market” ideas that benefit companies or industries, such as the idea to “go green” or to “give blood.” Businesses often use marketing to improve the long-term viability of their industries, such as the avocado industry or the milk industry, which run advertising spots and post social media messages to encourage consumers to view their industries favorably. Thus, the heart of the marketing mix is the good, service, or idea. Creating a product strategy involves choosing a brand name, packaging, colors, a warranty, accessories, and a service program.

Marketers view products in a much larger context than is often thought. They include not only the item itself but also the brand name and the company image. The names Ralph Lauren and Gucci , for instance, create extra value for everything from cosmetics to bath towels. That is, products with those names sell at higher prices than identical products without the names. Consumers buy things not only for what they do, but also for what they mean.

Pricing Strategy

Pricing strategy is based on demand for the product and the cost of producing that product. However, price can have a major impact on the success of a product if the price is not in balance with the other components of the 5Ps. For some products (especially service products), having a price that is too low may actually hurt sales. In services, a higher price is often equated with higher value. For some types of specialty products, a high price is expected, such as prices for designer clothes or luxury cars. Even costume jewelry is often marked up more than 1000 percent over the cost to produce it because of the image factor of a higher price. Special considerations can also influence the price. Sometimes an introductory price is used to get people to try a new product. Some firms enter the market with low prices and keep them low, such as Carnival Cruise Lines and Suzuki cars. Others enter a market with very high prices and then lower them over time, such as producers of high-definition televisions and personal computers.

Place (Distribution) Strategy

Place (distribution) strategy is creating the means (the channel) by which a product flows from the producer to the consumer. Place includes many parts of the marketing endeavor. It includes the physical location and physical attributes of the business, as well as inventory and control systems, transportation, supply chain management, and even presence on the web. One aspect of distribution strategy is deciding how many stores and which specific wholesalers and retailers will handle the product in a geographic area. Cosmetics, for instance, are distributed in many different ways. Avon has a sales force of several hundred thousand representatives who call directly on consumers. Clinique and Estée Lauder are distributed through selected department stores. Cover Girl and Coty use mostly chain drugstores and other mass merchandisers. Redken products sell through hair salons. Revlon uses several of these distribution channels. For services, place often becomes synonymous with both physical location (and attributes of that location such as atmospherics) and online presence. Place strategy for services also includes such items as supply chain management. An example would be that an engineering firm would develop offices with lush interiors (to denote success) and would also have to manage the supplies for ongoing operations such as the purchase of computers for computer-aided drafting.

Promotion Strategy

Many people feel that promotion is the most exciting part of the marketing mix. Promotion strategy covers personal selling, traditional advertising, public relations, sales promotion, social media, and e-commerce. These elements are called the promotional mix. Each element is coordinated with the others to create a promotional blend. An advertisement, for instance, helps a buyer get to know the company and paves the way for a sales call. A good promotional strategy can dramatically increase a firm’s sales.

Public relations plays a special role in promotion. It is used to create a good image of the company and its products. Bad publicity costs nothing to send out, but it can cost a firm a great deal in lost business. Public relations uses many tools, such as publicity, crisis management strategy, and in-house communication to employees. Good publicity, such as a television or magazine story about a firm’s new product, may be the result of much time, money, and effort spent by a public-relations department. Public-relations activities always cost money—in salaries and supplies. Public-relations efforts are the least “controllable” of all the tools of promotion, and a great deal of effort and relationship-building is required to develop the ongoing goodwill and networking that is needed to enhance the image of a company.

Sales promotion directly stimulates sales. It includes trade shows, catalogs, contests, games, premiums, coupons, and special offers. It is a direct incentive for the customer to purchase the product immediately. It takes many forms and must adhere to strict laws and regulations. For example, some types of contests and giveaways are not allowed in all the states within the United States. McDonald’s discount coupons and contests offering money and food prizes are examples of sales promotions.

Social media is a major element of the promotion mix in today’s world. Most businesses have a corporate website, as well as pages on different social media sites such as Facebook , Pinterest , and Twitter . Social media is more powerful as a channel for getting the company’s message out to the target market (or general public) than traditional advertising, especially for some target markets. Companies (and even individuals) can use social media to create instant branding. E-commerce is the use of the company website to support and expand the marketing strategies of the 5Ps. It can include actual “order online” capabilities, create online communities, and be used to collect data from both existing and potential customers. Some e-commerce websites offer free games and other interactive options for their customers. All of this activity helps to build and strengthen the long-term relationships of customers with the company.

Not-for-Profit Marketing

Profit-oriented companies are not the only ones that analyze the marketing environment, find a competitive advantage, and create a marketing mix. The application of marketing principles and techniques is also vital to not-for-profit organizations. Marketing helps not-for-profit groups identify target markets and develop effective marketing mixes. In some cases, marketing has kept symphonies, museums, and other cultural groups from having to close their doors. In other organizations, such as the American Heart Association , marketing ideas and techniques have helped managers do their jobs better. In the private sector, the profit motive is both an objective for guiding decisions and a criterion for evaluating results. Not-for-profit organizations do not seek to make a profit for redistribution to owners or shareholders. Rather, their focus is often on generating enough funds to cover expenses or generating enough funds to expand their services to assist more people. For example, the Methodist Church does not gauge its success by the amount of money left in offering plates. The Museum of Science and Industry does not base its performance evaluations on the dollar value of tokens put into the turnstile. An organization such as the American Red Cross raises funds to provide basic services, but if enough funds are raised (beyond just the amount to cover expenses), those funds are used to expand services or improve current services.

Concept Check

• What is meant by the marketing mix?
• What are the components of the marketing mix?
• How can marketing techniques help not-for-profit organizations?

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Marketing Mix: definitions, analysis examples [Complete Guide 2023].

The marketing mix aims at making your  marketing positioning  concrete . Often associated with the term “ 4Ps “, the objective of the marketing mix is to make your positioning tangible each time your brand is in contact with the consumer (the so-called “touchpoints”).

This article explains the  difference between 4P and 7P , explains each facet of the marketing mix with  numerous examples , and ends with a  detailed case study .

To go even further, we suggest you consult our  online resource , where we detail and illustrate all the factors to study for each of the 7Ps. We have also published case studies analyzed according to the 7Ps:  Rimac electric car ,  high-end watchmaking ,   fruit juice , cosmetics .

Finally, don’t miss our free pdf marketing mix guide with tons of exemples. It’s free to download.

• The 4P: definition
• Difference between 4P and 7P
• P1: Product
• P3: Promotion
• P6: Process
• P7: Physical Evidence
• Complete case study (Ryanair)
• Marketing mix guide (free download)

Marketing mix: what are the 4Ps?

The term “marketing mix” is often associated with another acronym: the 4Ps. The two have become almost interchangeable since Philip Kotler popularized the concept. “4Ps” is the English acronym for the 4 operational facets of marketing  that make your company’s positioning a reality. They all begin with the letter “p” in English:

• “Product” : all aspects related to the product (the Product Policy)
• “Price” : the price positioning of your product concerning its competitors (the Price Policy)
• “Promotion” : the aspects related to promotion such as advertising or the ways to make people aware of the existence of the product (the Communication Policy)
• “Placement” : aspects related to the distribution of your product (the Distribution Policy)

If Kotler popularized the 4Ps, its paternity goes to  E. Jerome McCarthy (1960) . The latter’s genius was to summarize these 4 facets in the form of an acronym that has now become part of everyday marketing language. Since the 1970s, however, marketing has evolved considerably. The 4Ps have become, if not obsolete, at least seriously incomplete. In the 1980s, marketing theorists called for a revision of the 4Ps, leading to  the birth of the 7Ps .

History: how the marketing mix went from 4Ps to 7Ps

• In 1960, McCarthy invented the 4P model (Product, Price, Place, Promotion)
• In 1987, Judd proposed a “human” component in the form of a fifth P (“people”).
• In 1986, Kotler added “political power” and public opinion (“public opinion formation”)
• It was in 1980 that the 7Ps took shape. Booms and Bitner proposed to add three “P’s”: “people” (to cover the human aspects of relationship marketing), “physical evidence” (a material component of the service), and the “process” part (interaction with the service user).

Marketing mix: what is the difference between the 4Ps and the 7Ps?

Digitalization has made the 4P’s seriously outdated. The 4Ps were indeed well adapted to a “physical” world but much less to e-commerce. They have therefore been supplemented by 3 new “P’s”:

• People : aspects related to human interactions through the multiple channels available today (primarily digital)
• Process : the processes put in place to guide interactions, especially those related to services.
• Physical Evidence: the tangible elements put forward to convince the customer (sales outlet layout, customer reviews, etc.)

To help you implement the marketing mix, we have prepared a detailed example  at the end of this article.

A recent example (2023): the collaboration between Yayoi Kusama and Vuitton

The famous Japanese artist collaborates once again in 2023 with Louis Vuitton. This collaboration allows us to illustrate several facets of the marketing mix:

• Physical evidence : the Vuitton flagship store, already famous for its spectacular window displays , is adorned with a unique ephemeral decor. The facade is studded with round motifs, symbols of Yayoi Kusama’s work, and a huge inflatable effigy in her image.
• Product : the collaboration is realized through a special edition of the famous Vuitton bag. The monogrammed canvas is adorned with round patterns. This is not the first time that Vuitton has carried out this kind of collaboration. We will remember, for example, the one conducted with the article by Jeff Koons.
• Promotion : this collaboration is making news, which results in a spectacular staging of the sales outlet on the Champs-Elysees and a limited edition product. This operation can, therefore, also be analyzed from the perspective of the Promotion P.

Vuitton’s flagship store on Avenue des Champs Elysées in Paris, photographed in February 2023 during the collaboration with Yayoi Kusama.

The P in “Product” (Product Policy)

The first of the 7Ps is, of course, the  product . The term product does not mean only a physical object. It can also be a service.

The chocolate maker Pierre Marcolini had materialized its collaboration with Kistuné by very original packaging.

To cover this first “P,” you will have to describe the product’s characteristics (design, packaging, functionalities), its place in the range, as well as the services that are attached to it (after-sales service, repair, end-of-life recycling).

Try to explain the characteristics of the product that make it different, unique, and that are part of its identity.

Also, think about the packaging, which is often an integral part of the  customer experience , as it is at Apple.

The P in “Price” (Pricing Policy)

In the marketing mix of luxury watch brands, the pricing strategy is “value-based.” The price is determined according to the value perceived by the customer and is not the sum of the price of the components used.

The second of the 7Ps is central since it is about price.

Here, the aim is to describe  how the company manages the different facets of “price” in its market . This starts with a description of the pricing strategy adopted by the company. The most well-known are the following:

• costs + margins: you add a margin to your production costs
• value-based: the price is determined according to the consumer’s perception of value
• competitive: you realize using the  competition research  and fix your price according to one of your competitors

The pricing strategy, once determined, will have to be declined in a “ price tactic .” The  pricing tactic is the operational extension of the pricing strategy. It describes how, in concrete terms, the pricing strategy is applied in the field. In this respect, the strategy of Swiss watchmakers is fascinating. They create a shortage that supports demand by voluntarily limiting production and choosing to whom they want to sell. Some, like Patek Philippe, also support the price level by buying back their older models at a high price to increase their desirability. The price of the products then soars on the parallel market, creating speculative bubbles like the one we described in this survey. The graph below shows the effect of the pricing tactics of Rolex, Audemars Piguet, and Patek Philippe on the price of their men’s watches.

Embed this media on your website

Once the overall strategy is described, you will need to describe  the other aspects of the marketing mix that depend on price:

• the pricing policy towards your intermediaries
• the discount policy towards your customers
• the payment policy and possible facilities offered to your customers to acquire your products

The P of “Promotion” (Communication Policy)

The third “P” is “Promotion.” It covers the aspects related to the company’s communication and the strategies used to make itself known on the market. The result is measured by the  notoriety  of the company among its target customers.

Electric hypercar manufacturer Rimac promotes its Nevera model by using YouTubers. Here Many Koshbin tries the vehicle in one of his YouTube videos (YouTube screenshot)

It is helpful to start by describing, in broad lines, the communication strategy followed by the company. What is the company’s position on advertising, and does it realize using advertising? Are specific media used (sponsoring, influencers, etc.)? If so, which channels are favored (digital, radio, TV, press, Out-Of-Home), and according to what logic are these channels selected?

When advertising investments are made, the repetition of messages plays a role in the persistence of the information in the consumer’s mind. Therefore, the analysis should try to clarify which repetition is aimed at, which will make it possible to deduce the advertising pressure that the company wants to impose and the importance of advertising in its global strategy.

In addition to advertising, the company can also promote itself through  inbound marketing . It is, therefore, a matter of attracting prospects naturally. Inbound marketing is a tactic that materializes in the digital space. The goal is to improve natural referencing (SEO) to capture the attention of Internet users and attract them to the company’s website. It is, therefore, necessary to analyze whether the company invests in content marketing and, if so, which online media are privileged.

The P of “Place” (Distribution Policy)

The fourth “P” concerns the distribution policy (“Place” or “Placement” according to the 4P terminology). In this part, we analyze how the product or service is distributed. There are three main distribution strategies:

• direct distribution
• distribution via a third-party network
• hybrid (a mix of the 2 previous ones)

Perugina commercializes its “Baci” in large-scale distribution but also has some stores of its own (here the one in Perugia)

Nespresso  distributes its coffee capsules through its own stores (direct distribution). Most food manufacturers sell their products through third-party networks (retailers). However, some of these manufacturers invest in their own stores ( Perugina , Lindt, M&M, ….). This is a hybrid strategy.

Once the broad lines have been drawn, the analysis of the marketing mix requires going into detail. It is advisable to study the opportunity of franchising, especially when the ambitions are high in terms of the geographical distribution of products. Covering a large territory requires significant resources. Therefore, a start-up with a product in high demand may have to turn to the franchise model to accelerate its deployment. This is a widespread model in the fast-food industry.

The Printemps store in Paris offers visibility to many brands and attracts foreign tourists. Crédits : gibs02 via Flickr.

Outsourced distribution  (via a franchise network or third-party distributors) also has marketing coverage advantages. Some brands may naturally attract customer segments that could represent additional sales for your company. Regardless of the distribution strategy chosen, careful consideration must be given to  the location of sales outlets (in the case of physical sales). The research on implementing physical commerce is of particular importance because of the  decline in the number of visitors to physical sales outlets . Over the last 10 years, city centers have lost 50% of their pedestrian traffic, which inevitably affects profitability.

If the company opts for e-commerce (which seems essential), particular attention must be paid to the logistical aspects. In particular, request what logistical processes need to be implemented to meet customer expectations regarding product availability and delivery times. Customer requirements are constantly increasing. They are shaped by  the delivery policies of the industry’s giants  (Amazon and others), whose logistical excellence allows them to shorten delivery times even further. For SMEs that lack operational excellence, the use of third-party fulfillment services can be an enjoyable (but costly) alternative to compete with the giants.

The P of “People” (Relationship policy)

Starbucks had set up a co-creation platform allowing customers to propose ideas to the company. Customer interaction was also possible.

The relational policy (the fifth “P”) is part of the 3 new “Ps” proposed by Booms and Bitner in 1981. The recognition of the role of the human being coincides with the emergence of relational marketing . We understand that the human component can contribute positively to the quality of service and customer satisfaction/loyalty.

In this part of the marketing mix, we will focus on understanding how its marketing positioning can be materialized through its human component. We will study the human part in the success of the company, and the satisfaction of the customer, as well as the role, played by the employees to transmit the values of the brand.

In the digital era, the relational policy is no longer only in B2C. It also materializes through C2C (Consumer To Consumer) interactions. Customers become ambassadors for the company and sometimes even play essential roles. Ryanair, for example, has set up a  customer advisory board . Hollister, a medical equipment manufacturer, has created its Vivre+ network to create links between patients through activities organized throughout France. The customer thus becomes an essential component of the marketing strategy. They become a full-fledged player, just like the employee.

The P of “Process” (the processes related to the service)

This part of the marketing mix is about describing and analyzing the processes surrounding the service. To make your analysis enjoyable, you should focus on the most distinctive elements of the processes.

Processes are a central component in the success of Ryanair’s low-cost business model.

In the case of a low-cost airline (see case study), we will look at  the role of processes in the business model’s success .

When the marketing positioning is the opposite (luxury), the sales processes play a significant role. The attitude, gestures, and behavior of salespeople are codified to align with the values embodied.

Your marketing mix analysis can quickly skim over certain aspects and should go into detail when justified.

The P of “Physical evidence”

Abercrombie & Fitch used to emphasize the plastic qualities of its salespeople to attract customers.

The last of the 7Ps is called “physical evidence.” In the spirit of the marketing mix, it is the tangible elements with which the customer is in contact when he buys the product .

These elements can be linked to the sales outlet itself (its design, its layout, the sound/smell / visual atmosphere), the objects found there, or the employees themselves (specific clothes, for example). The brand  Abercrombie & Fitch , for example, became famous for the olfactory and sound ambiance of its sales outlets. Its employees, chosen for their “visual” qualities, worked shirtless.

The brand Archiduchesse sends its products accompanied by some “goodies” (candies, stickers, key rings)

If we immediately think of the attributes of the sales outlet, we must not forget the digital space. Online reviews are now part of the “proof” that the customer integrates before making a decision. The delivery can also be an important moment to comfort the customer in his choice. In this article , we have given 3 examples of companies that use delivery as an emotional touchpoint with the customer: the wine estate Le Cazal that adds a sprig of wild thyme to its deliveries, Coolblue that sends a personalized postcard, and Archiduchesse that completes its orders with some “goodies.”

Case study: analysis of Ryanair’s marketing mix

In this research we propose to analyze the marketing mix of Ryanair, the Irish low-cost airline which is today the n°1 airline in Europe .

Marketing Mix guide (free download)

• Market research methodology

20 February 2022

Amazing stuff. I really found this article very interesting and helpful. The case study at the end of the article really helped to drive home the points raised in each of the elements of the 7 Ps. I say a big thank you to Dr Pierre-Nicolas S. Merci beaucoup.

21 February 2022

You’re welcome. THank you for your kind words. You can find even more here : https://www.intotheminds.com/blog/en/marketing-mix-guide/

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Home — Essay Samples — Business — Coca-Cola — The Marketing Mix of Coca Cola

The Marketing Mix of Coca Cola

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What Are the 4 Ps of Marketing?

• Understanding the 4 Ps

4. Promotion

How to use the 4 ps of marketing in your marketing strategy, the bottom line.

• Business Essentials

4 Ps of Marketing: What They Are & How to Use Them Successfully

Product, price, place, and promotion are the four Ps in a winning "marketing mix"

The four Ps of marketing are:

These are the key factors that are involved in introducing a product or service to the public. Often referred to as a marketing mix , they provide a framework that companies can use to successfully market a product or service to consumers. Since the four Ps were introduced in the 1950s, more Ps have been added to the mix, including people, process, and physical evidence.

Key Takeaways

• The four Ps are the four essential factors involved in marketing a product or service to the public.
• The four Ps are product, price, place, and promotion.
• The concept of the four Ps has been around since the 1950s. As the marketing industry has evolved, other Ps have been identified: people, process, and physical evidence.

Investopedia / Julie Bang

Understanding the 4 Ps of Marketing

Neil Borden, an advertising professor at Harvard, popularized the idea of the marketing mix—and the concepts that would later be known primarily as the four Ps—in the 1950s. His 1964 article "The Concept of the Marketing Mix" demonstrated the ways that companies could use advertising tactics to engage their consumers.

Decades later, the concepts that Borden popularized are still being used by companies to advertise their goods and services.

Borden's ideas were developed and refined over a number of years by other key players in the industry. E. Jerome McCarthy, a marketing professor at Michigan State University, refined the concepts in Borden's article and named them the "four Ps" of marketing. McCarthy co-wrote the book Basic Marketing: A Managerial Approach , further popularizing the idea.

At the time the concept was introduced, it helped companies breach the physical barriers that could hamper widespread product adoption. Today, the Internet has helped businesses to overcome some of these barriers.

People, process, and physical evidence are extensions of the original Four Ps and are relevant to current trends in marketing.

Any successful marketing strategy should be revisited from time to time. The marketing mix you create is not intended to be static. It needs to be adjusted and refined as your product grows and your customer base changes .

Creating a marketing campaign starts with an understanding of the product itself. Who needs it, and why? What does it do that no competitor's product can do? Perhaps it's a new thing altogether and is so compelling in its design or function that consumers will have to have it when they see it.

The job of the marketer is to define the product and its qualities and introduce it to the consumer.

Defining the product also is key to its distribution. Marketers need to understand the life cycle of a product , and business executives need to have a plan for dealing with products at every stage of the life cycle.

The type of product also dictates in part how much it will cost, where it should be placed, and how it should be promoted.

Many of the most successful products have been the first in their category. For example, Apple was the first to create a touchscreen smartphone that could play music, browse the internet, and make phone calls. Apple reported total sales of the iPhone for FY 2022 at $205.4 billion. In 2021, it hit the milestone of 2 billion iPhones sold.

Price is the amount that consumers will be willing to pay for a product. Marketers must link the price to the product's real and perceived value, while also considering supply costs, seasonal discounts, competitors' prices, and retail markup.

In some cases, business decision-makers may raise the price of a product to give it the appearance of luxury or exclusivity. Or, they may lower the price so more consumers will try it.

Marketers also need to determine when and if discounting is appropriate. A discount can draw in more customers, but it can also give the impression that the product is less desirable than it was.

UNIQLO, headquartered in Japan, is a global manufacturer of casual wear. Like its competitors Gap and Zara, UNIQLO creates low-priced, fashion-forward garments for younger buyers.

What makes UNIQLO unique is that its products are innovative and high-quality. It accomplishes this by purchasing fabric in large volumes, continually seeking the highest-quality and lowest-cost materials in the world. The company also directly negotiates with its manufacturers and has built strategic partnerships with innovative Japanese manufacturers.

UNIQLO also outsources its production to partner factories. That gives it the flexibility to change production partners as its needs change.

Finally, the company employs a team of skilled textile artisans that it sends to its partner factories all over the world for quality control. Production managers visit factories once a week to resolve quality problems.

Place is the consideration of where the product should be available—in brick-and-mortar stores and online—and how it will be displayed.

The decision is key: The makers of a luxury cosmetic product would want to be displayed in Sephora and Neiman Marcus, not in Walmart or Family Dollar. The goal of business executives is always to get their products in front of the consumers who are the most likely to buy them.

That means placing a product only in certain stores and getting it displayed to the best advantage.

The term placement also refers to advertising the product in the right media to get the attention of target consumers.

For example, the 1995 movie GoldenEye was the 17th installment in the James Bond movie franchise and the first that did not feature an Aston Martin car. Instead, Bond actor Pierce Brosnan got into a BMW Z3. Although the Z3 was not released until months after the film had left theaters, BMW received 9,000 orders for the car the month after the movie opened.

The goal of promotion is to communicate to consumers that they need this product and that it is priced appropriately. Promotion encompasses advertising, public relations, and the overall media strategy for introducing a product.

Marketers tend to tie together promotion and placement elements to reach their core audiences. For example, In the digital age, the "place" and "promotion" factors are as much online as offline. Specifically, where a product appears on a company's web page or social media, as well as which types of search functions will trigger targeted ads for the product.

The Swedish vodka brand Absolut sold only 10,000 cases of its vodka in 1980. By 2000, the company had sold 4.5 million cases, thanks in part to its iconic advertising campaign. The images in the campaign featured the brand's signature bottle styled as a range of surreal images: a bottle with a halo, a bottle made of stone, or a bottle in the shape of the trees standing on a ski slope. To date, the Absolut campaign is one of the longest-running continuous campaigns of all time, from 1981 to 2005.

The four Ps provide a framework on which to build your marketing strategy. Think through each factor. And don't worry when the factors overlap. That's inevitable.

First, analyze the product you will be marketing. What are the characteristics that make it appealing? Consider similar products that are already on the market. Your product may be tougher, easier to use, more attractive, or longer-lasting. Its ingredients might be environmentally friendly or naturally sourced. Identify the qualities that will make it appealing to your target consumers.

Think through the appropriate price for the product. It's not simply the cost of production plus a profit margin. You may be positioning it as a premium or luxury product or as a bare-bones, lower-priced alternative.

Placement involves identifying the type of store, online and off, that stocks products like yours for consumers like yours.

Promotion can only be considered in the context of your target consumer. The product might be appealing to a hip younger crowd or to upscale professionals or to bargain hunters. Your media strategy needs to reach the right audience with the right message.

When Did the 4 Ps Become the 7 Ps?

The focus on the four Ps—product, price, place, and promotion—has been a core tenet of marketing since the 1950s. Three newer Ps expand the marketing mix for the 21st century.

• People places the focus on the personalities who represent the product. In the current era, that means not only sales and customer service employees but social media influencers and viral media campaigns.
• Process is logistics. Consumers increasingly demand fast and efficient delivery of the things they want, when they want them.
• Physical evidence is perhaps the most thoroughly modern of the seven Ps. If you're selling diamond jewelry on a website, it must be immediately clear to the consumer that you are a legitimate established business that will deliver as promised. A professionally designed website with excellent functionality, an "About" section that lists the principals of the company and its physical address, professional packaging, and efficient delivery service are all critical to convincing the consumer that your product is not only good, it's real.

What Are Some Examples of the 4 Ps of Marketing?

• Place refers to where consumers buy your product, or where they discover it. Today's consumers may learn about products and buy them online, through a smartphone app, at retail locations, or through a sales professional.
• Price refers to the cost of the product or service. Properly determining product price includes an analysis of the competition, the demand, production costs, and what consumers are willing to spend. Various pricing models may be considering, such as choosing between one-time purchase and subscription models.
• The product a company provides depends on the type of company and what they do best. For example, McDonald's provides consistent fast food in a casual setting. They may expand their offerings, but they wouldn't stray far from their core identity.
• Promotion refers to specific and thoughtful advertising that reaches the target market for the product. A company might use an Instagram campaign, a public relations campaign, advertising placement, an email campaign , or some combination of all of these to reach the right audience in the right place.

How Do You Use the 4 Ps of Marketing?

The model of the 4Ps can be used when you are planning a new product launch, evaluating an existing product, or trying to optimize the sales of an existing product.

A careful analysis of these four factors—product, price, place, and promotion—helps a marketing professional devise a strategy that successfully introduces or reintroduces a product to the public.

The four Ps of marketing—product, price, place, promotion—are often referred to as the marketing mix. These are the key elements involved in planning and marketing a product or service, and they interact significantly with each other. Considering all of these elements is one way to approach a holistic marketing strategy .

Neil Borden. " The Concept of the Marketing Mix ."

E. Jerome McCarthy. "Basic Marketing: A Managerial Approach." Richard D. Irwin, Inc., 1960.

Apple. " Condensed Consolidated Statements of Operations (Unaudited) Q4 2022 ," Page 1.

Apple Insider. " At 2 Billion iPhones Sold, Apple Continues to Redefine What Customers Want ."

Harvard Business School: Technology and Operations Management. " UNIQLO: What’s Behind the Low-Cost High-Quality Casual Wear? "

Smart Insights. " Campaign of the Week: The Longest Running Print Ad Marketing Campaign in History ."

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Essay on marketing mix: meaning, components and observations.

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Essay on Marketing Mix: Meaning, Components and Observations !

Essay 1 # Meaning of Marketing Mix:

Marketing mix might be defined as follows:

Marketing mix is a unique combination of the basic ingredients of marketing viz. product, price, place (channels of distribution) and promotion-designed for the best realisation of the objectives of marketing management.

(1) “Marketing mix refers to the apportionment of effort, combination, designing and integration of the various elements of marketing into a programme, of mix which will best achieve the marketing objectives of an enterprise at a given time”.

—Prof. Neil Borden of the Harvard Business School

(2) “Marketing mix is the term used to describe the combination of four inputs which constitute the core of the company’s marketing system- the product, the price structure, the promotional activities and the distribution system”.

—William J. Stanton

Marketing mix is a mix of the type that is planned to ensure that the ‘product’ does sell even amidst intensely competitive conditions; providing best satisfaction to consumers and providing, in turn, handsome profits to the enterprise- in addition to fulfillment of other objectives of marketing management.

Point of Comment:

An analogy could be drawn between the marketing mix of a manufacturer and the spices-mix of a famous ‘Chat-wala’ located at the corner of a busy street in the walled city of Delhi; who combines spices like-salt, rock salt, pepper, black pepper, spices for seasoning food (i.e. garam masala) etc. in such proportions that the chat becomes so tasty as to lead to a remarkable rapidity of turnover fetching handsome profits to the chat-wala.

The chat masala mix is so to say, the trade secret of the chat-wala- unknown to the competitors. Further, the consumers, being unable to prepare that much tasty type of a chat at their homes, are persuaded to visit that particular chat-wala for the satisfaction of their ‘tongue-needs.’

A manufacturer, in a likewise manner, must design such a marketing-mix, that despite severe business competition-consumers do prefer his product and are led to buy that product for the satisfaction of those needs of theirs- for which that particular product is designed.

Essay 2 # Components of Marketing Mix – The 4p’s Of Marketing Mix:

Though there are a large number of component parts (or factors) which may go into the making of a marketing mix; yet, authorities on marketing management agree on four basic elements of marketing mix-popularized as the 4p’s of marketing viz. the product, the price, the place (i.e. the channels of distribution) and the promotion.

In fact, each of these four elements has many variables or variations of factors, and accordingly within the marketing mix we have four sub-mixes i.e. the product-mix, the price-mix the place-mix and the promotion-mix. In other words, the marketing-mix is a fine blend of product mix, price-mix place-mix and promotion-mix.

Following is a brief account of the four sub-mixes, comprised in the marketing mix:

(1) Product-Mix:

A product is not just, a physical tangible object; it is rather a ‘bundle of services’ associated with the utilisation of that product. A person e.g. does not buy a product simply for possession sake; rather he/she expects a number of services and conveniences-to be obtained from using that product.

Some of the important factors which usually go into the designing of the product mix are decisions about:

1. The product-range

2. Design, shape, colour, size, weight of the product etc.

3. Multiple uses of the product.

4. Standardisation/grading of the product.

5. Brand name of the product.

6. Guarantees and warranties offered by the seller.

7. After sales service provided.

A unique combination of these product factors and others makes for designing the product- mix. The basic idea behind making a product mix is to produce and offer a product that makes it acceptable to the target-consumers; by providing them maximum satisfaction for their needs for the fulfillment of which, the product, in question, is intended.

(2) Price-Mix:

The price-factor is, perhaps, the most-crucial factor of the marketing mix; as the buying decisions of most of the consumers are dependent on the price of the product. For the manufacturers also, the price decision is directly reflected in the profits; which they make from selling the product.

Some of the important factors which usually go into the designing of the price-mix are decisions about:

1. Price-range

2. Profit-margin to be included in the price

3. Discounts to be offered-cash discounts and trade discounts.

4. Credit terms

5. Competitors’ prices for similar type of products.

6. Discriminating pricing aspect.

7. Resale price maintenance policy etc.

A unique combination of these price factors and others makes for designing the price-mix. The basic idea behind making a price-mix is to offer the product at a price which is affordable by the target-consumers; making the product worthwhile for purchase; in view of the utility of the product.

(3) Place-Mix:

In marketing management, the term place is used to refer to channels to distribution i.e. intermediaries which fetch products from the place of the manufacturer to the place of ultimate consumers.

The ‘place’ is an important ingredient of marketing mix; as howsoever useful the product might be and howsoever suitable its price, be; unless and until products are made available to consumers at ‘centres of convenient buying’, the busy consumers of today’s affluent societies will be most unwilling to buy those product-travelling long distances.

The important factors which usually go into the making of the place-mix are decisions about:

1. Wholesalers

2. Selling agents

3. Transportation agencies

4. Warehousing agencies

5. Company’s direct selling outlets

6. Home delivery of products.

A unique combination of these place factors and others makes for designing the place-mix. The basic idea behind making a place-mix is to make the product available at such common centres of consumption; as makes for most convenient buying-on the part of the busy consumers of today.

(4) Promotion-Mix:

Promotion refers to creation, maintenance and increase of the demand of the product-through communication of the existence and utility of the product to target consumers and general public’s.

Promotion is a very significant component part of the marketing mix; as without promotional efforts, people would never be able to appreciate the utility of the product for satisfaction of their needs; and conducting sales-transactions, would not, obviously, be possible for the marketer.

Promotion, in a sense, is a sort of best consumer-education; which educates consumers as to the availability and usefulness of various products.

Some of the factors which go into making of the promotion mix are decisions about:

1. Advertising-through various media like the press, radio, TV, films, outdoor advertising, point of purchase-advertising etc.

2. Personal selling or salesmanship through various types of salesmen

3. Sale promotion methods (i.e. methods other than advertising and salesmanship) like- coupons, reduction sales, distribution of free samples, trading stamps, bonus offers, prize- contests and a host of other devices.

A unique combination of various advertising media, various types of salesmen and attractive sales promotions devices, makes for designing the promotion-mix.

The basic idea behind making a promotion-mix is to so communicate knowledge about the existence and utility of products; that prospects appreciate the significance of the products for the satisfaction of their needs and may become ready to buy the product-so promoted.

Point of comment Synchronization of sub-mixes i.e. product-mix, price-mix place-mix and promotion-mix into a grand-plan of marketing, would result in the development of a marketing mix of type which makes

1. The product acceptable

2. The price affordable

3. The place most convenient and

4. The promotion most influencing.

The criterion for measuring the success of the marketing mix is the volume of sales of product turned over by it.

The concept of marketing mix could, we’ll be illustrated, by means of the following circular diagram:

Note: Letter ‘C’ in the inner circle of the diagram indicates the term ‘Consumer’.

Essay 3 # Observations of Marketing Mix:

Certain observations on the concept of marketing mix:

(1) Target consumer is the focal point of designing marketing-mix. In fact, consumer is the central point around which the whole circle of marketing mix is drawn.

(2) All the four P’s of marketing mix are equally important; while designing the marketing mix. If e.g. the product is good (acceptable); but the price is not affordable the product may not be a good success.

Or if the product is acceptable and its price is also affordable; but the place (i.e. Channels of distribution) is not convenient for buying on the part of consumers-the product may not sell as much as expected.

Again, if the product, price and place-all the three meet the requirements of consumers; but the promotion is not properly communicative and influencing-the product may not sell much.

Therefore, an equal amount of emphasis must be placed on each of the four major elements of marketing mix; as an over-emphasis on any one element of the mix at the cost of other elements would simply mean a failure of the entire design of marketing mix.

(3) The four P’s of marketing mix are interrelated and interdependent; because a change in any one element of marketing mix is likely to necessitate suitable changes in other related elements of it.

For example, if a change (of any type, for that matter) is proposed to be made in the product; it might also be considered fit, by marketing management, to effect a change in the price of the product or a change in the promotional techniques; and so on for changes in other elements of marketing mix.

(4) Marketing mix is not developed in a vacuum:

Besides the 4P’s of marketing mix, which are the controllable elements of it; there are certain external environmental factors which are the uncontrollable elements of marketing mix.

Any design of the marketing mix must, accordingly, be shaped in view of the implications of environmental factors, amidst which the marketing mix is to demonstrate its impact on the marketing operations of the business enterprises.

In fact, the environmental factors provide the basic framework; within which the marketing mix is to be designed . (The outer circle of the marketing mix diagram shows the significance of environmental factors; while designing the marketing mix ).

Related Articles:

• Marketing Mix: Meaning, Definition and Characteristics of Marketing Mix (with diagram)
• Elements of Marketing Mix: Product, Price, Place (Distribution) and Promotion

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Essay: Products: Marketing Mix

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Introduction to Product

What is a product?

A product is anything that is capable of satisfying customer needs.

Products can be goods or services that can be traded for in a market. Products can be tangible, something you can hold, or intangible, a product that has no physical presence.

Products can be split into another two areas, consumer goods and producer goods.

• Consumer goods: Products that are made and used by normal people, an iPhone.
• Producer goods: Goods such as raw materials and capital that is used to produce consumer goods.

The Marketing Mix (7 P’s)

• Product: The good or service that the customer buys
• Price: The sum of money paid by consumers for a unit of a product
• Place: How the product is distributed to the customer
• Promotion: In the context of marketing, promotion is the process of communicating with customers or potential customers. Promotion can also describe communication with other interested groups, such as shareholders and suppliers
• People: The people who make contact with customers in delivering the product
• Process: The systems and processes that deliver product to a customer
• Physical: The nature and appeal of the physical evidence a customer will observe during a transaction, such as the company stationery and brochures, delivery lorries and staff uniforms

Product Portfolio

What is a product portfolio?

Product portfolio is the collection of products and brands owned and operated by a firm.

There are many corporations that have a large product portfolio. Some examples are:

Why would companies have a large marketing mix?

• Spread the risk – a decline in one product may be offset by the sales in one product
• Selling one product may not produce enough profit or generate enough returns for the business (e.g. the market segment may be too small to earn a living or continue with business operations)
• A range can be sold to different segments of the market.
• To offer a wider range of goods and services to support the original product. To offer a wider range of goods and services to support the original product. A florist may offer a variety of pots and vases for the flower arrangements so that the customer spends more in any one visit.
• To attract new consumers by aiming at a different target market.

However, having a greater range of products can create many problems for a firm:

Having a greater range of products could mean that marketing resources and finances for products may be spread out if the business has a cash flow problem.

• Many managers have to be employed to take decisions about the products.
• Bad publicity for one product may harm the company’s whole image.
• The cost of developing and selling so many products is high.
• Some products may fail if the company has not done sufficient market research.

Product Life Cycle

What is product life cycle?

The product life cycle is an important concept in marketing. It describes the stages a product goes through from when it was first thought of until it finally is removed from the market. Not all products reach this final stage. Some continue to grow, and others rise and fall. The product life cycle will affect a business’s marketing strategy, thus impacting the marketing mix

The main stages of the product life cycle and how it affects the marketing mix:

Research and Development: researching and developing a product before it is made available to the market.

Introduction: this is where a firm launches a product and introduce it into the market:

• Product: Branding and the quality of the product is established at this stage. Also, patents and trademarks are obtained at this point
• Pricing: Product pricing strategies would be implements, for example, low penetration pricing may be implemented to build market share
• Process: Shops (online or physical) or distributors are contracted so consumers can buy the products
• Promotion: Firm tries to build product awareness and tell consumers about the product

Growth: When sales of a product are increasing at their fastest rate:

• Product: Quality of the product is improved as firm has more finances due to increase in sales
• Pricing: This is when a firm maintains prices as the firm enjoys increasing demand due to a growing industry and little competition
• Process: Different ways to distribute product as there is an increase in demand.
• Promotion: Marketing has increased as the product has potential and is aimed at a broader audience.

Maturity: This is when a product has the highest ever sales but the rate at which the sales are growing has slowed down:

• Product: Products may be given additional features to differentiate product from competitors.
• Pricing: May be lower because of new competition
• Process: Becomes more intensive and incentives may be offered to encourage preference over competing product
• Promotion: Firms would use product differentiation to appeal to customers over different competitors.

Decline: The final stage of a product on the product life cycle, this is when sales would begin to decline. Eventually, the market for a product will start to decrease. This decrease in market sales could be due to the market becoming saturated or because the consumers are switching to a different type of product. An example of this is Nokia. During the introduction stage of smartphones, Nokia was number one in terms of market share. However, while this decline may be inevitable, it may still be possible for companies to make some profit by switching to less-expensive production methods and cheaper markets.

• Firms can maintain the product to rejuvenate the product and extend the product life cycle. They can do this by adding new features and finding new uses.

Removal: This is where a business decides to remove a product from the market and stop production. This is where the product life cycle of a product ends.

Product life cycle graph

• Introduction – Self-driving cars. Self-driving cars are still at the testing stage, but firms hope to be able to sell to early adopters relatively soon.
• Growth – Electric cars. For example, the Tesla Model S is in its growth phase. Electric cars still need to convince people that it will work and be practical. As there are more electric charging points and more people adopt, it becomes easier to sell to those who are more skeptical of new technology like electric cars.
• Maturity – Ford Focus. The Ford Focus is a well-established car. It has a good brand reputation and has reached its peak level of market penetration. It would be difficult to gain a significantly greater market share. The product life cycle of the Ford Focus has been extended by constant upgrades and redesigns to keep the car on top of the market.
• Decline – Diesel cars. Since governments have expressed concern at the level of pollution from diesel cars. Some cities have threatened to ban diesel cars within a few years. Sales have fallen considerably and the market for diesel cars may be in terminal decline.

Extension Strategies

Extending the Product Life Cycle

For any successful product a firm would want to anything they can to extend the growth and the maturity phases of the product life cycle. Firms would also like to delay the decline phase.

To achieve this objective, businesses have a few strategies,

• Advertising: to try and gain a new audience and convince people to buy a certain product. Apple can advertise the MacBook to encourage people to buy the MacBook or keep it on trend to increase a products life cycle.
• Price Reduction: Businesses could try to reduce the cost of their products to increase the demand for a product and be more attractive to customers. Firms would use this marketing strategy to persuade consumers. Reducing prices would encourage consumers to buy the product over its competitors. Reducing the price of a product is the response to declining sales. Price reductions can accomplish more than postponing a product’s decline stage in the product life cycle. A lower price, especially for luxury items, can entice new customers to indulge in a brand name without the need to justify a high price. A good way to accomplish this is by offering a “basic” version of the product. Before computer laser printers became affordable to nearly everyone, manufacturers could sell slower black-and-white versions of their signature models. BMW is one car maker that has employed this strategy, giving buyers a lower sticker price in exchange for the chance to own a Beemer.
• Adding value: Firms could try to add new and innovative features into a product. This is so that consumers would be encouraged to buy the newer version of the product. Product sales tend to decrease few years after it would be introduced into the market. Many reasons for that is because of innovation. As a product gets older, competitors in a market would try to improve a product and add new features in a similar product. This would cause the sales of a firm’s product to decrease as consumers may want to buy the latest product in the market. An example is Apple in the smartphone industry. If Apple don’t continue to add new features to their products like the iPhone, consumers would be less likely to buy the iPhone. This is due to the fact that competitors like Samsung may introduce a new version of the Samsung Galaxy that would have better features. This would cause a decrease in iPhone sales. This is because consumers would want to buy the latest technology can offer.
• Explore new Markets: selling a product into new geographical areas or creating a version of the product to target at different age groups or genders. The main benefit of globalisation is the fact that smaller businesses have access to newer markets due to social media and large distribution companies like Amazon. This ensures that even though a business operates and sells in one country, they can have access to new customers around the world. Because of this, firms have to make products that fit the market segments. Their products could feature things that may help old people or be target towards a specific culture.
• New packaging: Research has found that clever product packaging can help your target audience feel more loyal to your brand. In fact, one study found that 33 percent of buyer decision-making is based on product packaging. Another study found that 40 percent of buyers would share pictures of an attractive product package on social media. Repackaging your product can help it seem new and improved to your target audience, and it can also appeal to prospects that haven’t yet become buyers. Packaging includes the colors you choose, the design elements, the size of the package, the words and images you display on the package and the type of font you use. Incorporating recycled material to capitalize on the “green” movement is a common and growing tactic. Automobile manufacturers such as Toyota or Honda make subtle changes to their products every model year. Sleeker designs and new color schemes are aimed at attracting reluctant buyers. This would persuade customers to buy their product, extending the product lifecycle

Boston Matrix

The Boston Matrix is a model which helps businesses analyse their portfolio of businesses and brands. The Boston Matrix is a popular tool used in marketing and business strategy.

What is the Boston Matrix?

The Boston Matrix is a graph that takes an organizations product portfolio. This would assess every single product into four different segments, as shown below, the products would be put on the graph based on 2 factors, market share and market growth:

• Market share: Market share represents the percentage of an industry, or market’s total sales, that is earned by a particular company over a specified time period. Market share is calculated by taking the company’s sales over the period and dividing it by the total sales of the industry over the same period.
• Market growth: An increase in the demand for a particular product or service over a period of time. Market growth can be slow or declining for a product if consumers do not adopt a high level of demand or find a better product for the same price level. For example, new technology would only be demanded by a specific set of consumers. However, if the dependability or usefulness of the product increases, more consumers would need the product, increasing market growth.

How does the Boston Matrix work?

• Stars: Stars are high growth products competing in markets where they are most likely market leaders. However, the product also has potential to grow even more. In most cases, stars need high levels of investment to keep growing. An example of this is the Artificial Intelligence industry. Companies like AIBrain, who are the leading company in the A.I industry, are in an industry where they would have high market share and high market growth as their products like TYCHE would have quite a lot of potential to increase their market growth rate
• Question Mark: Question Marks are products with low market share in an industry that can have a high growth rate industry. This would mean that the product has potential to become a star. However, these products may need high levels of investment, there is also a possibility that the product may not live up to its potential and the business may not make the money they have invested into the product back. Businesses need to think whether the question mark product should be invested into. An example of this may be Apple’s AirPods. The AirPods, when introduced, had lots of potential to have a high market share and have a high growth rate. Two years late, the funds Apple invested into the product may have worked out as it is one of the leading products in the wireless earphones market.
• Cash Cow: Cash cows are low-growth products with a high market share. These products have usually been around for a long time, some for more than 100 years. These products are relatively successful products that need relatively little amount of investment. They usually stick around the market to give the firm continued profit levels. An example of a product that is a cash cow is Pepsi. Pepsi is a product that has a relatively high market share. However, the soft drink industry can’t really grow as much because people now days are more health conscious. This has meant Pepsi has a low market growth rate.
• Dog: The term dog refers to products that have a low market-share in an unattractive low growth market. Dogs are the type of product that may generate enough money to break-even. However, companies would be foolish to try and invest any money into these products as they may not get their money back from sales. Dogs are usually sold or put out of the firm’s product portfolio.

The main values of the Boston Matrix:

• A useful tool for analysing product portfolio decisions
• Only a snapshot of the current position
• Has little or no predictive value
• Does not take into environmental factors

Criticism of the Boston Matrix model:

• Market growth is an inadequate measure of the market’s attractiveness
• Market share is an inadequate measure of a products ability to generate cash
• The focus on market share and market growth ignores issues such as developing a sustainable competitive market

The Boston market can be simplified:

Product Development

The process involves in creating/bringing a new product into the market from conceptualization to release.

The value of product development:

• Enables a business to revitalise/replace products in decline phase

• Enter new markets

• Improve brand image

• Create USP/differentiation

• Motivation of staff

• Satisfy customers

• Increase profitability

Stages of development of new goods and services:

Every new product or service will pass through certain stages before it is launched. Each stage is designed to reduce the level of risk. However, even after the stage is completed, most new products will not survive. The stages of new product development are:

1. Generation of ideas. For some products, ideas are likely to come from within the company. This might take the form of research and development, leading to the introduction of a new product. Alternatively, in industries such as broadcasting, ideas are likely to be generated through meetings or suggestions from staff. For other products, ideas will normally come from external market research that will identify the types of new product that customers wish to buy.

2. Analysis of data. The next step is to look at the feasibility of the idea, to consider whether it meets the firm’s objectives and it fits with the image of the company.

3. Product development. The working of the product may be tested through a prototype or by simulation on a computer.

4. Test marketing. The use of test marketing (a small-scale release of the product, usually in a limited area) is helpful as it can avoid heavy financial losses if a product proves to be unpopular.

5. Launch. The launch will take place after the business has made modifications suggested by the previous activities. Evidence suggests over 70% of new products that are launched will fail within three years, so firms will want to look closely at the likely future success of a product before its launch. The vast majority of ideas for new products never reach the launch stage

Example of product development for Apple when developing the iPhone:

Generation of ideas: Apple wanted to create a product to increase the appeal of a smartphone and also create a product that would appeal to the world. This is because traditional smartphones were not really selling.

Analysis of data: Apple conducted research on consumers. This was to ensure that Apple knew the main problems with smartphones and why people were not buying it. The aim of the new product was to increase the sales of smartphones and make Apple the leader in the smartphone market. At this point, different designers in Apple submitted ideas on how to solve the main problems the smartphones were having. An example was that most people didn’t like the physical keyboard that was always there on a smartphone during their R&D period. A solution one of the employees came up with was to use a touch user interface, with a digital keyboard that would eliminate the need to place a physical keyboard that takes up most of the smartphone surface. At this point, Apple would have come up with a design and test product to see if the product would solve the problems people has with traditional smartphones. They would then give the product to testers to see if the product was useful in day to day situations.

Product development: The specialist machinery needed to make the new style of smartphone was tested and a production line was established. This step was important for Apple. A reason was this was to ensure that the iPhone was able to be produced while keeping the costs low. If the cost of production was too high, Apple would need to go back to the Analysing of Ideas stage to try and cut costs and make it so that the product can go into mass production.

Launch: The iPhone was launched June 29, 2007. It was unveiled in an Apple convention and met with quite a lot of applause. The iPhone was a huge success and instantly jumped as the leader in the smartphone industry, blowing past all the competitors like BlackBerry. Some people say that it was the phone that revolutionized the mobile phone. A reason for this was that Apple listened to the main problems with the traditional smartphone and acted upon it, creating a product that people liked. 2019-1-21-1548062769

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