The marketing mix is a tool used to help brands understand what elements must be combined in order to meet their marketing goals and objectives. Ultimately, this includes the 4 Ps of marketing: product, price, place and promotion.
The evolution of the digital age has caused the standard methods and practices of nearly every industry to change and grow to work within this new paradigm, and marketing is certainly no exception. In fact, the marketing industry has arguably seen the most benefit from the growth of digital.
Today’s marketers have access to a wealth of information and access through new tools for customer profiling, artificial intelligence, and response analysis to name just a few. Add to that Big Data, or the ability to collect, analyze, and act on enormous amounts of customer and product information, and the idea of providing reliable, predictive one-to-one marketing becomes very real.
The core tenants of marketing have stood the test of time. The Internet age has caused some changes in the way that marketers work, meaning revising old marketing processes, concepts, and priorities, and then reconstructing them into forms that work better and more effectively in this new world of communications. But through it all, those tenants and fundamentals remain the same.
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The 4 Ps of Marketing
The 4 Ps of marketing include product, price, place, and promotion. These are the key elements that must be united to effectively foster and promote a brand’s unique value, and help it stand out from the competition.
Jerome McCarthy first proposed the modern form of the 4 Ps in his 1960 textbook, Basic Marketing: A Managerial Approach. These elements have since provided a standard method to describing marketing programs for over 50 years.
But, what makes the 4 Ps of marketing so important that they have withstood the test of time, including the growth of the internet age? Below we break down each P, and reexamine the ways that each has remained critical to marketing.
Product
A product refers to any item that intends to satisfy the needs and wants of a target customer. It can be a tangible good, such a clothing item or piece of software, or intangible, like a service or experience (think legal services or a cruise).
Marketers must always have a clear concept of what their products stand for, and what differentiates them from the competition, before they can be marketed successfully. Today, the internet can be considered either the medium for purchase, via e-commerce, or the product itself, such as a social media service. Because of this, it’s vital that marketers fully understand the product they are selling, how it meets the needs of their target customer, and what makes their product stand above the competition.
Some key questions that marketers need to answer include:
- What do customers want from your product/service? Does it satisfy their needs?
- What features of your product/service work to meet your customer’s needs? Have you missed out on any features?
- How and where will the customer use it?
- How will the customers experience it?
Price
First comes the product, and immediately after comes a determination of its value among target audiences. Pricing strategy is an art and a science, in that it involves both market data and careful calculations, as well as skillfully balancing between pricing that is too high or too low, and understanding how skewing either way might damage the brand.
Price not only refers to the monetary value of a product, but also the time or effort the customer is willing to expend to acquire it. Determining this will be a critical factor in revenue for the brand as it will impact profit, supply, demand, and how much marketers should spend on a promotion or marketing strategy. This, in and of itself, is why this ‘P’ is one of the most important. If a product is priced too high or too low, the product – and brand – could fail.
Some key questions that marketers need to answer include:
- What is the value of the product or service to the buyer?
- How will your price compare to competitors?
- Are there any possible established price points for the product/service in this area?
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Place
The internet age has introduced new challenges when it comes to reaching your customers. Place refers to providing customers access to the product, and it also calls into play convenience for the customer. Marketing, through digital means or otherwise, is about putting the right product, in the right place, at the right price, at the right time, in front of the customer.
Some key questions that marketers need to answer include:
- Where are target customers shopping?
- Are they using desktops or mobile devices?
- Are they shopping for similar products online, or in brick-and-mortar stores?
- Where are they engaging on social media?
Even though transactions with your company may take place exclusively in-store or online, customers likely interact with your brand or your specific products in a variety of places. It’s important to consider how each of these places influences the overall customer experience.
Promotion
Now, how to make an audience aware of the product? Within the framework of the four Ps, promotion refers primarily to marketing communications.
These communications use channels such as public relations, advertising, direct marketing, email marketing, social media marketing, or sales promotions; think of it as any way marketers disseminate relevant product information to their target customers.
Promotion is the area that has arguably seen the greatest growth and change as a result of the digital age. With the exceptional access offered by B2C marketing solutions, marketers can now promote products easier, more effectively, and with more personalization than ever before, thus leading to greater outcomes and ever-increasing expectations.
Some key questions that marketers need to answer include:
- How will you reach your target audience?
- Where will you send your marketing messages to your target audience?
- How does your competition promote their product? Does that influence your own promotional activity?
- When is the best time to promote?
Using the 4 Ps of Marketing
The four elements of the marketing mix can be used to help you decide how to take a new offer to market or can be leveraged to help test your current marketing strategy. Follow these steps to define or improve your marketing mix:
- Identify the product or service you want to analyze.
- Review and answer the 4Ps questions listed above.
- Once you define your ideal marketing mix, try testing the overall offer from a customer’s perspective. Here are some questions that can guide you:
- Does it satisfy their needs?
- Will they consider the price to be reasonable?
- Where will they find this product/service?
- Has your audience been targeted appropriately and reached by your marketing communications?
- Continue to optimize your marketing mix by asking questions and making changes.
- Review your marketing mix on a regular basis to adapt to the constantly evolving market.
Final Thoughts
While today’s marketing environment has changed significantly since the 4 Ps were established in 1960, the foundation of marketing has not. By continuing to focus on the 4 Ps and how to use them within the framework of the digital age, marketers can be successful no matter the circumstances.
There may be new methods made possible with these types of technological advancements, but old concepts still ring true.
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By Indeed Editorial Team
Published November 9, 2021
Marketing comprises more than advertising and promotions. It includes looking at a product or service from the perspective of a consumer and identifying what's most important to them. Learning about the marketing mix can help you create a compelling and successful marketing strategy for the company's next product or service launch. In this article, we discuss the definition of the marketing mix, identify the four key elements of effective marketing, and highlight three additional marketing concepts.
What is the marketing mix?
If you've entered the world of marketing, you may wonder, "what is the marketing mix?" In its simplest terms, the marketing mix is a general name that describes a set of four processes organizations use to promote their products or services. As part of a comprehensive marketing plan, the marketing mix comprises four vital elements that focus on the customer or consumer, including:
product
price
placement
promotion
Related: A Guide to Marketing as a Career
The 4 Ps of the marketing mix
Effective marketing for an organization relies on a wide range of content instead of one specific message. This process allows the company to reach a more significant audience, and using the marketing mix elements helps a business identify the critical aspects. In addition, when using these elements, you can make better strategic decisions when launching a new product or service or while revising an existing marketing plan that requires improvement.
While you can study each marketing mix element independently, they often work together to provide a more effective marketing message. Breaking down a marketing plan into the fundamental components can make the process more streamlined and straightforward, which includes the four elements:
Product
The first element of the marketing mix is the product. This is the item or service the company has created to provide to a customer. Successful products satisfy a need or desire for the consumer. Within this component, it's critical to identify what makes the product different from others in the marketplace. For example, you can look at various competitors and recognize how the product stands out from the rest.
In this element, you also want to determine if the company has other products or services you can market with the original item. Add-on sales that partner with the initial product can help boost revenue and improve brand awareness. When considering the product, here are several questions you can ask:
What's the biggest problem the company helps a customer solve?
What does the customer want from using the product or service?
What customer needs or desires does the product fulfil?
How does the customer use the product?
Where does the customer use the product?
What are the critical features and benefits of the product?
How does the customer interact with the product?
What's the name of the product or service?
What's the brand message?
What makes this product from its competitors?
What value does the product provide to its user?
What packaging is ideal for showcasing the value of the product?
Related: Top Product Management Skills
Price
Price refers to the amount of money the business charges customers to purchase the product or service. There are many factors that contribute to selecting the most effective pricing strategy for the item. Consider the costs incurred in producing the product, such as research and development, manufacturing, raw materials, marketing, and distribution. If you price the product based on these factors, you are using cost-based pricing. You may also decide to price based on a customer's perceived value of the product, also known as value-based pricing.
When considering the pricing of the product or service, here are several questions you can ask to gain more insight:
What's the lowest amount the company can sell the product?
What's the highest amount the customers may pay?
What is the price range of the target audience?
How does the product derive its market value?
What prices do the company's competition currently charge?
Where does the proposed pricing fit into the competitor marketplace?
What does the product cost to make compared to the company's competitors?
What discounts would affect selling more units?
If the price slightly decreases, would sales increase significantly?
If the price increases slightly, would sales decrease?
Placement
Placement refers to where the company distributes and sells the product or service. Considering product placement is a critical factor in success and creating a brand image and reputation. For example, if the company manufactures and sells disposable ballpoint pens, they can likely sell the products in many areas. As a result, customers can probably find the brand readily available in many stores, including retail chains, small retail businesses, discount stores, and through online retailers.
Now imagine that your role is to help a company sell a premium hand-assembled pen. In this example, you likely only sell the product in select physical stores or online boutiques. Both pen products focus on a specific target audience, and their availability coincides with these factors. When considering the placement of these products or services, here are several questions you can ask to provide clarity:
Where does the ideal customer look for this type of product or service?
What outlets, both online and offline, sell this type of product?
Does the company sell the product to businesses or consumers?
Does the company sell directly to the end-user, or is there a system of distribution?
What are the current successful distribution channels?
Where do the company's competitors place their products?
Where do competitors have the majority market share, and how can the business overcome this advantage?
Where does it make sense to promote the product or service?
Where can advertising reach the most customers?
Related: Top Degree in Marketing Jobs
Promotion
The last element in the marketing mix is promotion. Once you have optimized the other three marketing mix elements, you can use promotion to build awareness of the product or service. Several activities that comprise promotion include advertising, public relations, and sales promotions. Factors to consider when determining the best promotional strategy include the size of the budget assigned to the product or service and the most effective mediums for marketing.
You can identify the most effective marketing mediums for promotion based on the other marketing mix factors of product, price, and placement. Examples of mediums include magazines, television ads, online advertising and marketing, social media platforms, podcasts, or newspapers. When considering the promotion of the product or service, here are several questions to ask:
Which mediums do customers use to consume information?
What's the best time of day, season, or year to promote the product?
When are consumers most likely to be on specific social media platforms?
What promotional medium is best suited to advertise the product?
What digital marketing strategies can help you reach the company's promotional goals?
How can you encourage customer testimonials and reviews?
What incentives appeal to the ideal customer?
How do competitors promote their products?
3 additional marketing elements
There are three additional marketing elements to consider as additions to the core product, price, placement and promotion. These three extra factors are:
Physical evidence
The element of physical evidence relates to the product manufacturing and sales locations or areas. Physical evidence also considers tangible aspects of the product, including packaging and factory conditions. For example, consider the manufacturing of health supplements. The physical environment of the manufacturing plant can affect the customer's perception of the product's value and quality.
Physical evidence within a sales location includes factors that contribute to customer perception of the product, such as retail fixtures, lighting, store layout, and signage. This aspect of the marketing mix is especially vital for brands that have proprietary retail locations. Studying customer behaviour while shopping can provide valuable insight into spending habits and brand awareness.
People
Especially critical for service-based organizations is the factor of people in the marketing mix. People refer to the employees who represent the company when interacting with customers. You may consider the company's hiring practices when recruiting new employees, such as personality assessments, skill testing, interview processes, and background checks.
Understanding the recruitment and training process can lead to improved customer retention and satisfaction for customers who use these services. For example, providing information to the customer about the employee's skills, expertise, and required training can help them feel more confident in the level of service and quality they receive.
Related: Top 10 Skills of a Marketing Manager
Process
Process related to the manufacturing, distribution, and delivery of the product. Increasing the transparency of these processes gives customers better insight into their product's creation, handling, and delivery. The manufacturing process can become a distinct point of difference that sets the business apart from competitors in the marketplace.
For example, suppose the company's manufacturing process includes eco-friendly fluids, green energy sources, recycled products, or a zero-carbon footprint. Each of these manufacturing features becomes a source for marketing a message for environmentalism. Another example can be the delivery of the product. Suppose the company uses 100% post-consumer recycled waste packaging with compostable packing peanuts. This can also become a successful marketing strategy to set your product apart.