Those who know the basic elements of the marketing mix really understand what the marketing function in a company consists of. The marketing-mix formula clearly indicates that marketing comes from the word market, has a complex composition and is not limited to promotion.
The components of the marketing mix determine the set of actions and tactics through which any company solves its tasks of conquering the market. In this article we intend to consider what the marketing mix is, and the tools and elements that make it up.
What is the marketing mix?
The variable factors of the external environment force companies to periodically review their marketing strategy. To execute and control this strategy, it is broken down into four areas, each of which bears the letter "P". These four Ps represent the elements of the marketing mix.
The marketing mix
Each element is part of an entire interconnected system. For this reason, the term "marketing mix" is also called the marketing mix. It arises from the marketing plan process, which is preceded by an in-depth study and analysis of the market situation and the internal conditions of the company.
The resulting marketing strategy will dictate the content of each element of the marketing mix.
Considering all parties and managing all elements of the marketing mix allows the company to take a holistic approach in its quest for success in the marketplace. Focusing on one or only part of the marketing mix structure will necessarily lead to failure.
It can be said that the marketing mix or marketing mix is a framework in which the strategy is broken down into the main tactical areas of the company's competition for market share.
The main elements of the marketing mix
The marketing mix concept was first introduced by Neil Borden, a professor at Harvard Business School. Later, to simplify, the acronym 4P was used, formed by the capital letters of four English words. In summary, the marketing mix comprises the following components:
It is what the company sells. It can consist of a product, a service or a combination of services related to the product. Also, a trademark or a brand name is part of the product in today's market. In short, a product is anything for which the consumer is willing and prepared to pay money.
It is not just a figure for which a product is sold. It is a complex cocktail of parameters that determine the final value for the client. It can be discounts for volume, price in high season or vice versa, etc.
Location refers to areas, wholesalers, outlets, type of outlets, etc. where the product is available for purchase by consumers. And it is not a simple list of points of sale, but also includes a logistics chart of how the product arrives at them.
Marketing communications that are often considered as a whole. This element combines the basic principles of the choice of promotional tools, communication channels and the intensity of the impact on the target consumer audience.
Development and basic models of the marketing mix
In all fairness, it should be noted that the 4Ps marketing mix concept is the oldest, simplest, and therefore most basic concept that is applied by professionals around the world.
As competition evolved and customer relationships became more complex, other varieties began to emerge. Next, we propose to review the main models of the most common marketing mix in practice.
For companies operating in the service segment, the 4Ps concept does not provide a complete overview of the marketing measures required to fully operate in the market. Therefore, three more "P's" were added to the already known set of "P's":
- Physical tests
- the people . In the service business, the staff is the bearer of the brand. People determine whether a company can fully meet the needs of its target audience. In these companies, the behavior, communication, etc., of the staff is closely associated with the brand values.
- The processes built into the service can help build a positive experience for the consumer or go against the promises of advertising. Therefore, marketing has to enter into the established system of norms in the company and change it when necessary if it does not meet the expectations of the target audience.
- Physical representation or space in which contact with the consumer and the sale of services take place. It can create the right atmosphere and mood, or the opposite, cause distrust, nervousness and the desire to leave the room as soon as possible.
The 4C model
This concept is similar to the 4Ps with some minor adjustments. It is made up of the following elements:
- Cost (cost to the consumer). This is somewhat analogous to price, but in a broader sense. This element includes all costs associated with the purchase of the product, including not only material costs, but also time and moral costs.
- The comfort. It represents another angle of vision of the location element of the 4Ps, considering accessibility as a convenience factor of the acquisition.
- Communication. The counterpart of the promotion in 4P.
- Customer needs and wants. It describes a product more precisely, focusing on the fact that the company's offer must consist of answers to what the customer wants or needs.
In addition to variations of the classic marketing mix made up of the 4Ps, there are modern models of the marketing mix. Consider them below:
The SIVA model
It consists of the following elements:
- Solution: solution to the buyer's problem, to his need
- Information: delivery of messages to the consumer about the proposed solution
- Value: benefit for the buyer, taking into account the cost of acquiring the product
- Access: availability of the solution and ease of purchase for the consumer
For modern apps and info products, there are the following marketing mix models.
The 2P model
It consists of only two elements: Privacy and personalization, which means privacy and a personalized approach to the client.
The 2C model
It is made up of Community and Customer service, that is, community and customer service.
The 3S model
It consists of the promotion of the sale, the site and the security.