The term 'marketing mix' is a foundation model for businesses, historically centered around product, price, place, and promotion (also known as the "4 Ps") and commodity, cost, channel, and communication (also known as "4 Cs"). The marketing mix has been defined as the "set of marketing tools that the firm uses to pursue its marketing* objectives in the target market". *Marketing is the art of attracting customers.
Product refers to the goods and services you sell that Consumers buy. The various components of your Product's quality, packaging, customer service, and so on must match and exceed the consumer's perceived value before a sale can occur.
Price refers to the price you set, but the Cost refers to the consumer's expenses, time, and emotional effort to purchase the Product from you. Some costs include the consumer's risk appetite to try something new, or the expenses to travel to your Place to purchase the goods or even prior bad experiences with your product. It is important that you set your Price after considering the total cost your consumer bears to purchase your Product. This section is where the highest number of businesses fail at. The Place where you set up shop determines the level of Convenience your consumer enjoys. The key point here is to always find ways to make it easier for your consumer to reach out and make purchases from you.
Promotion refers to your persuasion tactics to manipulate the Consumers into making a purchase, but Communication is the art of understanding and reducing the purchase friction. Promotions are considered manipulative because their tactics cause consumers to purchase Products they do not want or need under normal conditions. A widely known purchase friction today is the use of inorganic chemical ingredients in Products, and smart businesses that modify their Products to remove such ingredients apply Communication well.
The smart ones would notice by now that each of them represents two ends of a spectrum. The 4Ps (Product, Price, Place, Promotion) are the seller's perspectives while the 4Cs (Consumer, Cost, Convenience, Communication) are the buyer's perspectives. Many founders struggle with the 4Cs as the strong will needed to found an organization in the face of doomsayers has taught them to ignore other people's perspectives. However, we also understand that a "Trade is a transaction between humans", so we must also understand other people's (consumer's) perspectives before a trade can occur. It is often reasonable to say that the marketing mix employed can determine the long-term success and failure of any organization.
Here's how you can start applying the marketing mix model.
1. Start by identifying the product or service that you want to analyze.
2. Now go through the 4Ps and 4Cs perspectives – as defined in detail above.
3. Try asking "why" and "what if" questions too, to challenge your offer. For example, ask why your target audience needs a particular feature. What if you drop your price by 5 percent? What if you offer more colors? Why sell through wholesalers rather than direct channels? What if you improve PR rather than rely on online advertising?
You need to include your competitors and substitute products as part of your analysis.
4. Keep on asking questions and making changes to your mix until you are satisfied that you have optimized your marketing mix, given the information and facts and figures you have available.
5. Review your marketing mix regularly, as some elements will need to change as the product or service and its market grow, mature and adapt in an ever-changing competitive environment.
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