Marketing is an evolving discipline. The companies that have not evaluated according to the current times stay behind the competition. One of the examples of this evolution lies in the fundamental changes of the Marketing mix.
It refers to the set of tactics used by business organizations to promote their services or products. Once there were 4Ps to explain the marketing mix. Nowadays, an additional layer of 7ps is needed to give the depth of the Marketing mix.
1. Marketing Mix-Product
The product refers to whatever a company sales for profit. The company manufactures the product after going through profound research about the customer’s requirement. Besides the need of the consumers, the company also should operate a combing operation to determine the correct prices of the products.
Good market research will tell them what price the customers would likely to buy it and what would be the correct size, material or color etc. The usability, performance and the application of the products may fit the customer’s requirement.
But all this research will go in vain, if the company does not keep in mind the location and the time they are selling the product? Give some space to the questions like, “Are your products and services suitable or the markets or applicable in the current season?’’ Whenever you stumble to sell a product or the customers do not pay any heed to your service, you need to analyze the effectiveness of the products or services.
Basically, the usage of the product should fit the users need and the customers’ expectations. Ultimately, the ‘usability’ and the ‘affordability’ of a product increase sales of the product.
2. Marketing Mix- Price
The second P in the marketing mix theory is Price. It is a very valuable aspect to sell your products. The pricing strategy depends upon the supply and demand of a particular product in the market place. The manufacturing cost, the target segments and several other factors are instrumental in detecting the price.
The effectiveness of the products should always be seen as representing good value for the price. This does not necessarily mean that the price should be the cheapest. A primary precept of marketing theory is that the users generally prefer to pay a little more if they find the products highly effective and work well.
Why does the company lower and your increase the product price?
The company should repeatedly inspect and reexamine the price of the services and the products. You have to evaluate the current market to make sure the price of your product is appropriate or not. After going through this process, you often need to reduce your price.
On the other hand, it is absolutely fair to raise the price when the company finds that the price of the products doesn’t justify the effort, resources and the production cost. A few percentages of customers may stop buying the product, but the company gains a significant margin of profit from the remaining percentage.
Sometimes the company launches exclusive offers on special occasions. Besides that, they include additional items. These items cost peanut amount to produce. But the combo offer price looks very lucrative to the customers.
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3. Marketing Mix- Place
The 4th ‘P’ in the marketing mix is ‘place’ or the location where your product is actually sold to the customers. In some cases, a change in place can generate a rapid increase in sales.
Marketing also means deciding where and how you are going to promote and sell the products. If you have a clear idea about where you can find your customers, it becomes easier to take the right marketing strategy to persuade the customers to buy your product.
The company can sell its product in many different places. Some prefer telemarketing to sell the products. Some service providers or the manufacturing houses land on some trade shows and in retail establishments to sell the items. Some companies depend on marketing representatives or distributors.
You have to distribute the products in a place where your potential buyers can access them. This leads you to understand the target market. You can develop the most suitable distribution strategies by undertaking a combing operation in the target market.
Here are some questions that you must ask before forming any distribution strategy:
1. Where do your potential clients can easily buy your products or services?
2. Will you make a profit selling in the online store?
3. Do you need to participate in trade fairs to sell your products?
4. What kind of stores your clients prefer? Do they go in the supermarket, mall, regular stationary store or online?
4. Marketing Mix- Promotion
The 4th P of the marketing mix is promotion which is essential to boost sales as well as brand recognition. It is comprised of several elements of marketing like-
- Public Relations
- Sales Organization
- Sales Promotion
Advertising, Press release, Personal Selling, Sales Promotion and, in recent times social Media are the key communication tools in a business planning of an organization.
The marketing team of a company should know who their target consumers are and how you can reach them convincingly to promote a product. Should you advertise on TV, through posters, in the press or in the billboards and hoardings? If you are selling seasonal products, then you must consider timing a big factor in promotion.
You need to keep in mind some following questions to create an effective product promotion strategy:
1. When is the correct time to promote your service or product?
2. Is your product appropriate to promote in social media?
3. What are the promotion strategies of your competitors?
4. How will your marketing plan reach your potential buyers?
What are the other 3Ps?
The Marketers in the late ’70s acknowledged that the theory of Marketing Mix must be updated. Booms & Bitner created the extended marketing Mix in 1981 which led to the addition of 3 new elements. The extended 7 Ps:
5. Marketing Mix- People
All companies are dependent on some people who run the business from the front line like Sales executives, managing director, Customer service staffs etc. Having the right employees is essential because they are as important as your business offering such as the products and services. So, it is vital to hire and train the right people to provide premium quality product and superior service to the clients.
6. Marketing Mix- Process
The process of work in an organization is the 6th Marketing Mix which effects the implementation of the service and the applications of the products.
It could be the distribution system, the sales funnel, the pay system or other procedures to ensure the effectiveness of the running business. So, make sure you maintain a well-presented and neatly-tailored process in the organization to minimize cost.
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7. Marketing Mix- Physical Evidence
Almost all services include some physical evidence related to your brand. As an example, a grocery shop provides the items you seek. An insurance company would give printed form to its customers.
Physical evidence refers to any physical product that your customers see when they interact with your business or brand like the packaging, the layout, the brochure, the branding and the physical environment where you provide the service.
Hence, consider how the layout, signage and fixture can build your brand elevate your sales.