What is Marketing Mix?
Before digging into the topic, it is appropriate to define Marketing Mix. Kotler et al defines the concept as:
“ …the set of controllable tactical marketing tools that the firm blends to produce the response it wants in the target market. It consists of everything the firm can do to influence the demand for its product.”
Analysis of the Definition
1. The set of controllable tactical tools
That means that the tactical tools are in the control of the company.
2. Blending of the tools
These tools are not used in isolation. They are blended to get the desired response.
3. The tools are directed at the target market.
These tools and tactics are not limited. These include anything as long as they produce the desired response.
Groups of Variables: The Four Ps.
There are four main groups of variables: Product, price, place and promotion. They are usually referred to as 4 Ps’
Product is the totality of goods and services. It may be anything which satisfies the need and wants. It includes physical products, services, ideas, places, organizations and even people. It is not only the physical product but all related things. For example, Vauxhall Astra product is not its car only; it is anything right from parts and accessories to finance and warranty.
Price is what the customer is ready to pay for the product. The price variable is only the price of the car but will include things like list price, discounts, allowances, payment periods, credit terms etc.
Promotion means methods involved to promote the products for selling purposes. It is communicating with the costumers and let them know the benefits and value they will be getting from the product. Promotional activities may take the form of advertisements, commercials, incentives, offers, personal sale and publicity.
Place is the fourth variable among the (four) 4 P’s which means making the target available to target consumers. Taking the Vauxhall example again that would be the establishment of dealership to provide the products and related services to customers.
The Four Cs’
Robert Lauterborn, a marketing expert, suggests that the four Ps’ represents only the seller’s view of the marketing mix. From the consumer’s point of view, each tool should be views as to pass on benefit to the customer and so these four P’s should be viewed as the four Cs’.
The Four P’s should correspond to the Four Cs’ as under:
|Four Ps (Seller’s Tool)||Four Cs (Customer’s Benefit)|
|Product||Needs and Wants|
|Place||Convenience of the Customer|