MARKETING MIX

Marketing mix is one of the major concepts in modern marketing. It is the combination of various elements which constitutes the company’s marketing system. It is set of controllable marketing variables that the firm blends to produce the response it wants in the target market. Though there are many basic marketing variables, it is McCarthy, who popularized a four-factor classification called the four Ps: Product, Price, Place and Promotion. Each P consists of a list of particular marketing variables.

The first P – Product consists of

(i) Product planning and development;

(ii) Product mix policies and strategies; and

(iii) Branding and packaging strategies.

The second P – Price consists of

(i) Pricing policies and objectives; and

(ii) Methods of setting prices.

The third P – Place consists of

(i) Different types of marketing channels;

(ii) Retailing and wholesaling institutions; and

(iii) Management of physical distribution systems.

The fourth P – Promotion consists of

(i) Advertising;

(ii) Sales promotion; and

(iii) Personal selling.

A detailed discussion on each of the above four P’s follows now:

PRODUCT

Product stands for various activities of the company such as planning and developing the right product and/or services, changing the existing products, adding new ones and taking other actions that affect the assortments of products. Decisions are also required in the areas such as quality, features, styles, brand name and packaging.

A product is something that must be capable of satisfying a need or want, it includes physical objects, services, personalities places, organisation and ideas. Thus, a transport service, as it satisfiers human need is a product. Similarly, places like Kashmir and Kodaikanal, as they satisfy need to enjoy the cool climate are also products.

The second aspect of product is product planning and development. Product planning embraces all activities that determine a company’s like of products. It include-

a) Planning and developing a new product;

b) Modification of existing product lines; and

c) Elimination of unprofitable items.

Product development encompasses the technical activities of product research, engineering and decision.

The third aspect of product is product mix policies and strategies.

Product mix refers to the composite of products offered for sale by a company. For example Godrej company offers cosmetics, steel furnitures, office equipments, locks etc. with many items in each category.

The product mix is four dimensional. It has breadth, length, depth and consistency.

Yet another integral part of product is packaging.

PRICE

The second element of marketing mix is price. Price stands for the monetary value that customers pay to obtain the product. In pricing, the company must determine the right price for its products and then decide on strategies concerning retail and wholesale prices, discounts, allowances and credit terms.

Before fixing prices for the product, the company should be clear about its pricing objectives and strategies. The objectives may be set low initial price and raising it gradually or o set high initial price and reducing it gradually or fixing a target rate of return or setting prices to meet the competition etc. But the actual price setting is based on three factors namely cost of production, level of demand and competition.

Regarding retail pricing, the company may adopt two policies. One policy is that he may allow the retailers to fix any price without interfering in his right. Another policy is that he may want to exercise control over the products. Discounts and allowances result in a deduction from the base price.

PLACE

The third element of marketing mix is place or physical distribution. Place stands for the various activities undertaken by the company to make the product accessible and available to target customers. There are four different level channels of distribution. The first is zero-level channel which means manufacture directly selling the goods to the consumers.

The second is one-level channel which means supplying the goods to the consumer through the retailer. The third is two-level channel which means supplying the goods to the consumer through wholesaler and retailer. The fourth is three-level channel which means supplying goods to the consumers through wholesaler-jobber-retailer and consumer.

There are large-scale institutions such as departmental stores, chain stores, mail order business, super-market etc. and small-scale retail institutions such as small retail shop, automatic vending, franchising etc. The company must chose to distribute their products through any of the above retailing institutions depending upon the nature of the products, area of the market, volume of scale and cost involved.

The actual operation of physical distribution system required company’s attention and decision-making in the areas of inventory, location of warehousing, materials handling, order processing and transportation.

PROMOTION

The fourth element of the marketing mix is promotion. Promotion stands for the various activities undertaken by the company to communicate the merits of its products and to persuade target customers to buy them. Advertising, sales promotion and personal selling are the major promotional activities. A perfect coordination among these three activities can secure maximum effectiveness of promotional strategy.

For successful marketing, the marketing manager ahs to develop a best marketing mix for his product.