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When a brand is venturing into marketing, the brand needs to understand its marketing mix first. When a brand has its marketing mix sorted out, it gives a clear picture of what the brand has to offer, and where the brand can go to market and advertise its offerings to gain maximum returns. Let us understand what is marketing mix!
WHAT IS THE MARKETING MIX?
The marketing mix is a set of four decisions that must be made before launching a new product. These variables are also referred to as the 4Ps of marketing. These four variables help companies make the strategic decisions needed to keep their products/organizations running smoothly.
The Four Main variables that are to be considered in any marketing mix are
- Product
- Price
- Place
- Promotion
Let us understand the variables of the marketing mix in detail:
Product:
The first thing you need to start a business is a product. Therefore, the product is also the first variable in the marketing mix. Product decisions are the first decisions you make before you start planning your marketing. The product can be divided into three parts. Main products, extension products, and tertiary products. Deciding on the product that your business has to offer, begins the journey of your brand’s marketing process.
Price:
It refers to the price which each brand wants to set for their products. These product prices are constantly updated as they depend on many variables. Pricing focuses on product costs, advertising and marketing costs, price fluctuations in the market, distribution costs, etc. Many of these factors keep changing individually thus affecting the overall price of the product. Prices are used to promote sales in the form of transaction discounts. So, based on these factors, there are several pricing strategies, one of which is applied to the marketing mix. The price of the product forms another important factor in the marketing mix as it will help in devising a perfect marketing plan.
Place:
A place represents a distribution channel for a product. If a product is made for the consumer, it should be available to as many people as possible. On the other hand, premium consumer products are only available in select stores. Similarly, if your product is a business product, you need a team to interact with the business and make the product available. So where a product is distributed depends on the product and its pricing as well as the STP (Segmenting, Targeting, and Positioning) decisions made by the company.
Distribution has a significant impact on the profitability of a product. Therefore, supply chain and logistics decisions are regarded as very important cost decisions for enterprises. A company must have a complete logistics and supply chain plan for distribution. Therefore, after deciding what product your brand will offer and at what price, where will the product be taken to distribute and make available to the customers is the next variable in the marketing mix. Based on which place will be the product be made available, helps in devising a marketing strategy best suitable for your business.
Promotion:
Promotions in the marketing mix include integrated marketing communications (IMC) plans that in turn include ATL(Above The Line) and BTL(Below The Line) advertising and sales promotions.ATL includes advertising on television, radio, print, etc, while BTL includes advertisements done via direct marketing, sponsorships, etc. Promotions mainly depend on product and pricing. What is your marketing and advertising budget? What stage is the product in? Brand/product awareness needs to be increased if the product is new to the market, and brand recall is required if the product already exists.
The promotion also determines the segmentation and positioning of a product. Proper promotion affects all three other variables: product, price, and place (location). If your promotion is effective, you may need to increase the number of retailers, increase your product’s brand value and increase your price, or it may help you launch a more profitable product. However, the budget required for a large-scale promotion is not too high. Promotion is considered a marketing expense and should be considered when determining the cost of a product.
Therefore, the marketing mix forms the foundation of any marketing plan for any brand. Understand your brand’s marketing mix first to strategize for the perfect marketing plan.
