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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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