An Organization and Its Environment
Read this chapter to learn the basics of the marketing mix. Examples are provided for each "P" of the marketing mix – product, price, promotion, and place. A marketer must define each P while determining the best combination of all 4 Ps to effectively reach a target market and ultimately create value for the customer and the company. Apply the 4 Ps to the Apple iPhone.
- Product – How does the product address the needs and wants of a customer? What is unique about the product?
- Price – How would you characterize the price? Are discounts available?
- Place – Where can the customer buy the product? Would most customers be able to readily buy the iPhone when needed?
- Promotion – How does the company communicate with customers about the product and its features and benefits? Does the customer communicate with the company and others about the product?
Components of the Marketing Mix
Product
In the marketing mix, the term "product" means the solution that the customer wants and needs. In this context, we focus on the solution. Products include either physical things (goods) and/or intangible things (services). Some products include both goods and services. In combination, or individually, goods and services are a solution and referred to as the product in the marketing mix. Examples of the product include:
- The Tesla Model S, a premium electric car
- A stay at a Holiday Inn Express, a low-price national hotel chain
- Nacho Cheese Doritos, a snack food
- Tangerine, an online banking service
Promotion
In the marketing mix, the term "promotion" refers to the communications that occur between the company and the customer. Promotion includes both the messages sent by the company and messages that customers send to the public about their experience. Examples of promotion include:
- An advertisement in Cooking Light magazine
- A customer's review of the product on Twitter
- A newspaper article in the local paper quoting a company employee as an expert
- A text message sent to a list of customers or prospects
Marketing professionals have an increasingly difficult job influencing promotions that cannot be controlled by the company. The company's formal messages and advertising are only one part of promotions.
Place
In the marketing mix, the term "place" refers to the distribution of the product. Where does the customer buy the product? "Place" might be a traditional brick-and-mortar store, or it could be online. Examples include:
- Distribution through an online retailer such as Amazon.com
- Use of a direct sales force that sells directly to buyers
- Sales through the company's website, such as the shoe purchases at Nike.com
- Sales by a distributor or partner, such as the purchase of a Samsung phone from Best Buy or from a Verizon store
In today's world, the concept of "place" in the marketing mix rarely refers to a specific physical address. It takes into account the broad range of distribution channels that make it easy for the target customer to buy.
Starbucks Online Ordering
How did a company like Starbucks that sells hot drinks from a storefront use mobile technology to improve distribution? Watch the video, below, to find out:Price
- The price of a used college textbook in the campus bookstore
- Promotional pricing such as free McNuggets offer for downloading the McDonald's app
- Discounts to trade customers, such as furniture discounts for interior designers
Source: Marketing Faculty at the Walton College of Business, University of Arkansas, https://uark.pressbooks.pub/intromarketinguark/chapter/reading-components-of-the-marketing-mix/
This work is licensed under a Creative Commons Attribution 4.0 License.