Importance and Elements of Marketing Mix

By | September 25, 2013

A single marketing technique might not be that helpful for businesses. In such cases, marketing comes to play. Marketing mix refers to combination of multiple techniques or tactics used by businesses to promote their products/services. In this article, we will discuss the importance and elements of marketing mix for businesses.

Importance
Ad serverIt is essential, so that the business meets the needs of the customers thereby satisfying them. Marketing mix is made of 4p,s that are, price, product, place and promotion. This means, the products:

  • Should be delivered in right place.
  • Must make people aware of by promotion.
  • Must satisfy customer needs
  • Must have right price.

Elements of marketing mix
Elements of marketing mix may also be called as 4Ps and they are product, price, place, promotion. All these elements interact with each other :

  • Product: This includes the details of the product offered to the customers. What the product is, what it does, how it provides benefits and how it differ from other products. The product can be tangible or intangible. A tangible product is one that customer can touch and see whereas intangible product is a service that cannot be touched.
  • Price: Make sure to follow a pricing that is profitable to your business. When trying to price a new product, a business can use price skimming strategy or market penetration pricing strategy. A low price for the product is established under market penetration pricing policy in order to attract large crowds of people. Prices are raised under price skimming pricing policy to recover the new products cost.
  • Place: The pace is where the business is selling its products/services and how they are taken by the customers. The products are placed by people known as channel of distributions. This channel makes products available to the consumers. This further involves storing, handling and taking the products to customers at right place and at right time.
  • Promotion: The products features and benefits are communicated to the targeted customers through this method. It is a process of communication between business and the public. Business promotional activities should be planned to improve performance of the business. There are different ways such as advertising, public relation, personal selling etc. Advertising informs and educates public about the product and service. Sales promotion helps in attracting the consumer to purchasing a product/service by offering coupons, free samples, discounts, trade shows, conventions etc. Consumers are likely to respond quickly to sales promotion techniques.

Marketing mix is important tool in making marketing effective.