Marketing Mix
Marketing Mix
Marketing Mix
The basic purpose to determining the marketing-mix is to satisfy the needs and
wants of the customers in the most effective manner. As the needs of customers and
the environmental factors change, the marketing-mix is also changed. Thus,
marketing-mix is a dynamic concept. It concentrates on how to satisfy the needs of
the customers.
Nature of Marketing-Mix
Marketing-mix is the marketing manager's instrument for the attainment of
marketing goals. It is composed of four ingredients: (i) product, (ii) pricing (iii)
promotional activities, and (iv) physical distribution. These elements constitute the
core of the marketing system of a firm. A marketing manager implements his
marketing strategies and policies through these instruments.
Importance of Marketing-Mix
Marketing-mix represents a blending of four elements, namely, product, price,
promotion and physical distribution. Determination of marketing-mix is an important
decision which the marketing manager has to take. If proper marketing-mix is
determined, the following benefits will accure to the organization:
(i) Marketing-mix serves as the link between the business firm and its customers. It
focuses attention on the satisfaction of customers. Thus, it helps in pursuing
consumer-oriented marketing.
(ii) Since marketing-mix takes care of the needs of the customers, it helps in
increasing sales and earning higher profits.
(iii) Marketing-mix gives consideration to the various elements of the marketing
system. There is a balanced relation between these elements. For instance, the price
of a product depends upon its features and branding, packaging, etc. The media of
advertisement will depend upon the product and its features. The channels of
distribution will also depend upon the nature, utility, etc. of the product.
(iv) Marketing-mix facilitates meeting the requirement of different types of
customers, product design, pricing, promotion and distribution will depend upon the
needs and purchasing power of the customers. If the requirement of customers
changes, marketing-mix will also be changed to satisfy their requirements.
Components and interaction of marketing-mix
MARKETING MIX
1. Product.
Product-mix involves planning, developing and producing the right types of products
and services to be marketed by the firm. It deals with the product range, durability
and other qualities and other features. In short, product planning and development
involves decisions about: (i) quality of the product (ii) size of the product, (iii) design
of the product (iv) volume of the production (v) packaging (vi) warranties and after-
sales service,
2. Price:
It is one of the most difficult tasks of the marketing manager to fix the right price.
The marketing manager has to do a lot of exercise to determine the price. He should
determine the price in such a way that the firm is able to sell its products
successfully. Pricing also involves establishing policies regarding credit, discount,
delivery and payment. Right price can be determined through pricing research and
by adopting test marketing techniques.
3. Promotion.
Promotion deals with informing and persuading the customers regarding the firm's
product. It involves decisions about advertising, giving free articles on purchase of
the particular commodities, conducting contests, role of personal selling are
important tools to promote the sale of precuts of a firm. The use of promotional
activities like contests, free distribution of samples etc., is also significant. Thus, a
mix of advertising, personal selling and sales promotion are used for the promotion of
a firm and its products. The promotional tools are briefly described below:
(i) Advertising: Advertising is a tool which the marketing manager uses to
communicate a message to consumers through newspapers, magazines, television,
etc.
(ii) Personal Selling: Personal selling is another means of communicating to
consumers, and consists of direct person- top- person interaction between salesman
and customers.
(iii) Sales Promotion.
Sales promotion includes all the methods of communicating with the consumers
except advertising and personal selling. It includes free samples, premium on sale,
contests, displays, shows and exhibitions, etc.
4. Place or physical Distribution.
Place-mix includes activities that are necessary to transfer ownership of goods to
customers and to make available goods at the right time and place at which the
products should be displayed and made available to the customers. It is
management's responsibility to select and manage trade channels through which the
products will reach the customer at the right time and to develop a physical
distribution system for handling and transporting the products through these
channels. The important channels used for physical distribution of goods are
wholesalers and retailers. In some cases the manufacturer even owns the retail
outlets. For example, there are oil companies in India that own stations distributing
their petroleum products. Many manufacturers like Eureka Forbes also sell directly to
consumers by way of door-to-door sales persons. Whatever may be the channel
selected, the marketing managers are also responsible for measuring channel
performance and making changes when performance falls short of expected goals. In
addition, he has to develop a system of handling and transporting the products
through these channels. The important questions include: Will the product be
transported to middlemen by rail or by truck? If by truck, should the company buy its
own vehicles or engage a transporter to do the transporting? What is the best route
over which the goods should be moved? These are some of the decisions which the
marketing managers have to take in the field of physical distribution.