Once the company has decided on its overall competitive marketing strategy, it is ready to begin planning the details of the marketing mix. Marketing mix could be defined as a set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market. The marketing mix consists of everything the firm can do to influence the demand for its product. The many possibilities can be collected into four groups of variables known as the â€œfour Psâ€? of marketing related to a product.
Marketing mix constitutes the core of organizations marketing system which includes four variables which are known as marketing mix variables.
A â€œProductâ€? may be a physical good, a service, an idea, a place an organization, or even a person
Product is the heart of marketing mix. Product means â€˜Goods or Servicesâ€™ or in combination that the company offers to its customers. Managing the product ingredientsâ€”includes planning and developing the right product / service that is to be marketed by the company. The strategies may vary from one product to the other, for the existing product or for the new ones.
Product is a set of tangible and intangible attributes which provide want-satisfying benefits to a buyer in an exchange. Such attributes include color, price, packaging etc.
A product conveys a message indicating a bundle of utilities to satisfy the expectations of a buyer. The product would speak about the uniqueness by its qualities too. It must offer economic social and psychological satisfaction, to the customer. The total product concept includes not only physical attributes or characteristics of the product but also pre-sale and post-sale services and the satisfaction it provides to the customer.
The selling points of a product are:
1. Physical product itself.
3. Brand name, package label etc.
4. Design, color, size, shape etc.
7. Safety etc
What you pay for what you get. Value is expressed in terms of rupees.
Price is the amount that is to be paid by the customer to obtain the product. Price also pays a vital role in the selling process. Price has the perceived value or else buyers will turn to competitors for their purchases. The management determines the base price for its product. A desired quality with a reasonable price would attract the customers. Buyers can be attracted by giving discounts or credit facilities, while promoting the product. The price variation of the same product may occur due to certain reasons like demand, usage, location etc.
Place stands for company activities undertaken by the company to make the product accessible and available to target consumers. The product should be available at the right place for the customer. Then only the product is purchased by them. Thus a right market at a right time would develop the distribution system.
Pertains to a product available at the location where a customer wants it.
Promotion refers to sales promotion activities undertaken by the company to communicate the merits of its products, to persuade target customers to buy the product. Thus this ingredient is used to inform the users about the market regarding companyâ€™s product.
Advertising, personal selling, sales promotion are the various promotional activities that are undertaken by the company to push its products / services. These elements are an organizationâ€™s marketing mix which is used to inform and persuade the market regarding the organizationâ€™s products and services.