The term ‘marketing mix’ incorporates all actions and decisions that are important for placing a company and its offerings on the market successfully. In order to carry on a successful business, it is essential to implement the marketing mix effectively.
Let’s compare the definition of marketing mix with baking a cake: changing one ingredient (such as the proportion of butter) can initially improve the result – the cake. If more and more of this ingredient is used, however, it can completely ruin the taste. With a cake mix, just as with a marketing mix, the central challenge is to find the optimum combination. Therefore, it is not a good idea to improve the use of the ingredients, or tools, individually and separately without taking into consideration the other “parts”. In other words, an effective combination of marketing tools creates synergies, enabling a set goal to be optimally achieved.
Does The Marketing Mix Consist Of 4 Ps Or 7 Ps?
The marketing mix, i.e. the ideal combination of marketing tools, breaks down into four or seven different elements, each beginning with the letter P. If you search for literature on the subject, it will mostly refer to four Ps: product, price, place, promotion. Those who interpret marketing in the current, wider sense include three additional Ps in their marketing mix: process, people and physical facilities. The extended marketing mix, as it is called, is used primarily in services marketing. The paragraphs below briefly describe the main elements of the seven Ps:
Product (product design)
The product policy covers all areas related to the design of the product. How must the company’s products/services look in order to meet customer requirements? Examples: materials, design, brand name, packaging, service.
Price (pricing)
This is about setting product prices: how does the price of the product/service need to be set so that it is accepted by my customers? Examples: pricing, discounts, payment and delivery terms, credit terms.
Place (distribution)
The distribution policy specifies how the product reaches the customer quickly, easily and cost-effectively. Examples: sales channels, storage, transport options, point of sale.
Promotion (communication)
Promotion includes all communication measures through which the target audience receives more detailed information on the product, which boost sales of a service and build a positive brand or corporate image. Examples: personal sales, online/offline advertising (e.g. print advertising, e-mail marketing, social media marketing), sales promotion, public relations.
People (human resources policy)
The manner of the employees providing the service is a key factor in corporate success. Examples: quantity (how many employees), quality (education/professional development), training requirements, incentives.
Process management
This marketing tool aims to make processes efficient, adapt them in line with changing conditions and, if necessary, optimize them. Example: the product’s journey from the description in the online shop to the buyer’s door.
Physical facilities (physical facilities policy)
The visible environment plays an important role in marketing. Not only while a service is being used, but beforehand, too. Examples: furnishings in a consulting room, reception, ambience in a café.
Leveraging The Marketing Mix For Long-Term Success
A precisely defined marketing mix helps a company to get a clear view of its direction of travel. Wrong decisions, which often cost dear, can be quickly spotted and avoided. It is worth investing time in devising a comprehensive marketing mix.
It is also important to regularly review the marketing mix and take into account any changes in the market or customer requirements. A company is only successful if it has satisfied customers.
