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The Marketing Mix model (also known as the 4 P’s)
can be used by marketers as a
tool to assist in implementing the M. strategy. M. managers
use this method to attempt to generate the optimal response in the
target market by blending 4 (or 5, or 7) variables in an optimal
way. It is important to
understand that the MM
principles are controllable variables. The MM can be
adjusted on a frequent basis to meet the changing needs of the target
group and the other dynamics of the M. environment.
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Product |
Historically, the
thinking was: a good product will sell itself. However there are no bad
products anymore in today's highly competitive markets. Plus there are
many laws giving customers the right to return products that he perceives
as bad. Therefore the question on product has become: does the organization
create what its intended customers want? Define the characteristics of
your product or service that meets the needs of your customers.
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Functionality, Quality, Appearance, Packaging,
Brand, Service, Support, Warranty |
| Price |
How much are the intended customers willing to pay?
Here we decide on a pricing strategy - do not let it just happen! Even if
you decide not to charge for a service (a loss leader), you must realize
that this is a conscious decision and forms part of the pricing strategy.
Although competing on price is as old as mankind, the consumer is often
still sensitive for price discounts and special offers. Price has also an
irrational side: something that is expensive must be good. Permanently
competing on price is for many companies not a very sensible approach. |
List Price, Discounts, Financing, Leasing
Options, Allowances, |
| Place |
Available at the right place, at the right time, in the
right quantities? Some of the revolutions in business have come about by
changing Place. Think of the internet and mobile telephones. |
Locations, Logistics, Channel members, Channel
Motivation, Market Coverage, Service Levels, Internet, Mobile |
| Promotion |
(How) are the chosen target groups informed or
educated about the organization and its products? This includes all the
weapons in the marketing armory - advertising, selling, sales promotions,
Public Relations, etc. While the other three P's have lost much of there
meaning in today's markets, Promotion has become the most important P to
focus on. |
Advertising, Public Relations, Message, Direct
Sales, Sales, Media, Budget |
The function of
the MM is to help develop a package (mix) that will not
only satisfy the needs of the customers within the target markets, but
simultaneously to maximize the performance of the organization.
There have been
many attempts to increase the number of P's from 4 to 5P's in the MM model.
The most frequently mentioned one being People or Personnel. Booms
and Bitner have suggested a 7-Ps approach for services-oriented companies.
Book: Nirmalya Kumar - Marketing As Strategy:
Understanding the CEO's Agenda for Driving Growth and Innovation - 
Book: David A. Aaker - Strategic Marketing Management -
Compare with the
4-Ps:
Extended Marketing Mix (7-Ps)
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Ansoff |
Porter
|
BCG Matrix |
Bass Diffusion
model |
Positioning
More management models
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Summaries of 2,000 management methods