What is the “Marketing Mix”?

‘Marketing Mix’ is the term used for the set of tactics and actions – the strategy – a company uses to promote its brand or products.

This strategy usually includes what is known as the ‘Four Ps’: Price, Product, Promotion and Place. It can also include a few more though, such as Packaging, People and Politics.

The Ps

Price – Price is simply the cost of the product to the customer. This price needs to cover the costs of producing and transporting the product, the promotion and marketing costs, and the cost of the staff resources necessary to run the company and comply with all regulations, taxes, and so on. It also must include some profit for the company owners. However, it also has to be low enough that people will pay that price for the product on offer. Some products need to be as cheap as possible, to allow people to feel they are getting a great deal; other products are priced very high in comparison with their production costs, creating a sense of luxury or exclusivity.

Product – The product is simply the item (or service) being sold. The product must fulfil at least the minimum level or performance in order for the other marketing Ps to have a chance of success, but it can be of much higher quality than necessary – which can help with the next P.

Promotion – Promotion includes all of the activities that take place to make the public (potential customers mostly) aware of the product and its availability. Unique selling points (USPs) are often highlighted to show that the product has greater value than its competitors. Promotion can come in a wide variety of forms, including word of mouth, media advertising including television, online ads, posters, flyers, radio and podcast promotions and more. Promotion does not always have to be a paid service either, press reports, awards, contests and other similar things can be very effective means of promotion, either on their own or (more commonly) in cooperation with paid efforts.

Branded merchandise can be an effective Promotion method within the marketing mix. Learn more about merchandise here.

Place – Place refers to the point of sale of the product. This can mean a physical shop, an online shop, or a delivered service. Retailers can pay a great deal of money for the most advantageous space (including domain names) as these can often mean the difference between a slow, empty shop, or a bustling business with an increase in ‘accidental’ exposure and word of mouth promotion.

Packaging – As the world moves toward being more environmentally responsible, the packaging is becoming more of a factor in people’s choices of where to spend their money. Reducing packaging, using recycled and recyclable materials, and avoiding harmful ones (like Styrofoam and plastics) are becoming increasingly important to a company’s image and ethos.

People – Who are you selling to? Who do you hope to attract with your marketing campaign? This is the first side of the People consideration, but not the only one.

Having the right people, with the right skills, doing the right jobs is important too. Your best employee from accounting isn’t likely going to be your most effective salesperson, nor is your most effective salesperson going to excel at logistics or web design – it is extremely important to make sure you have effective people in key marketing positions, or the rest of the strategy may well fall flat and do more harm than good.

Politics – Most of us try to steer clear of politics when it comes to business so as not to alienate potential customers, but there are some industries in which politics and product simply can’t be separated. You don’t need to set out to make a political statement when you promote your products, but it’s worth taking a step back and asking yourself if you are making any ‘accidental’ statements, if those statements fit the ethos of you and your company, and if you even want to make any statement at all. Awareness here is key, so your decisions are made with full knowledge.

All of the 7Ps contribute to the overal branding experience.

Why is Branding Important? Click here to find out.

Why is the marketing mix important?

Each of the elements of the marketing mix influences the other ones, for better or worse. When creating or changing one aspect, it is important to consider the rest of them and the knock-on effects that might occur. It is always best to have other sets of eyes take a look too, to ensure a full range of perspectives.

The 4Ps vs The 7Ps

When the Four Ps were first designed, the role of customer service in promoting brand awareness and trust was not widely appreciated. Most companies sold physical products and there were fewer choices in where these products were available. This later evolved to include Packaging, People, and Politics.

9Ps of Marketing

In 2007, Larry Steven Londre proposed a strategy of Nine Ps of marketing. His list includes:

Planning & Research

This entails laying out an overall strategy, a plan that will take you from where you are ow, through to the end of your marketing campaign. This includes doing any research that might inform the strategy, such as competitor costs and USPs, market demand, customer demographics, and other factors of production and logistics.

This stage is key to the whole process, and worth a significant amount of investment in time, care and expertise.

Product

The Product is any good or service you have for sale. The type and quality of products will help determine the branding, pricing and other factors surrounding the item. Luxurious and exclusive? Cheap and cheerful? Disposable? Artisan? These factors will have a powerful impact on what strategy (or strategies) will be effective.

People

Who is your customer? Who is your product for? Once you know who your customers are, you have your ‘target market’.

The more you know about who your intended customers are, the better you will be able to research what marketing strategies work to attract their attention, engage with them as consumers, and drive through to a completed sale – and perhaps a new customer for life!

Price

Price is more than just a high enough number to cover your costs, it is an indicator of the prestige of your product too (and in most cases the buyers will determine this more than the seller can). It needs to be in that sweet spot where it covers the costs of production, including adequate profit, and yet is attractive to the customers. This sweet spot varies widely, is based on many factors in the market and society, and can be very volatile.

Keep in mind that the cheapest price isn’t always the most effective. Buyers need to know that they can have confidence in a product. A £5 watch could be of decent quality, but the price sends consumers the message that it is almost disposable. Likewise, the same watch for £200 might be passed up because it’s too expensive for the range it’s in. Finding that point at which the buyer feels that there is some value there (and this can include prestige and exclusivity), but also that the buyer is getting a fair deal – that’s the goal.

Part of this consideration should be where your prices sit in comparison to your competition. Are you lower priced but offer a similar product? Then you’re the best one for the budget shopper. Are you a little more expensive than your competition? Why? Do you offer better service? A better product? What value are you offering for the additional money?

Promotion:

Promotion is the actual steps you’ll take to reach your potential customers – it’s how you reach that target audience you identified above.

This can include a wide range of paid and unpaid efforts, from press releases, demonstrations, word of mouth, advertising on TV, podcasts, streaming services, print media and digital posters or billboards. Door to door selling, email blasts and other methods are also common.

The key here is to consider your target audience, know what they respond to, and fashion something that will be effective in catching their attention.

Place/Distribution

This is how (or where) you interface with your customers, and how (or where) you exchange the goods or services. This can mean a brick-and-mortar shop, a delivery service, an online shop, or even door to door marketing.

Worth considering is the companies you are up against. Are you working in cooperation with giants like Amazon, or are they your competition? Either one is okay, but each will require a different strategy.

It is here that convenience is king. You don’t want the buying process to be arduous or nerve-wracking for you customers. As smooth and worry-free as you can make it, the better for your customer and therefore for you too. Customers will pay more, and return more frequently, when they feel supported and looked after during the buying process and the days afterward.

Partners/Strategic Alliances

Strategic alliances between companies had developed massively in the past several decades. From giants like McDonald’s and Disney joining forces to promote toys in Happy Meals, to Starbucks and Spotify tying coffee and music together, to any number of other paired strategies to combine customer bases, and increase value through cooperation, this trend appears to be here to stay.

Your brand doesn’t have to be a household name to benefit from this kind of arrangement either. Think of something as simple as a dog-groomer pairing with a small pet supplies store, or a boutique cosmetics shop pairing with a local salon or clothing shop. Your branding in their place of business in exchange for yours in theirs – and the customers are shared without any loss of income to either business!

Think of brands around you that are a natural fit with your company – consider size, ethos, target market, etc. – and then consider ways in which you could each help the other. Mutual discounts, shared advertising, and other strategies might save money and boost sales at the same time – and that’s good business.

Presentation

Presentation is a blend of marketing science and weaving a good story. The best marketing presentations have some form of narrative, a story that the buyer can follow along with and connect to. Giving away a pair of shoes in a developing country for each pair bought in a developed one – that’s an example. A family business handed down from a great grandparent, son to son or daughter to daughter, is another narrative that resonates with many customers.

Ideally these narratives include some USPs, like a world-bettering ethos or traditional craftsmanship, and will resonate with not only your customers, but with shareholders, investors, and even employees.

Passion

When a person or a company is passionate about what they sell, it comes through in a good marketing strategy. Think of Steve Jobs and Apple Computers, Dave Thomas and Wendy’s Hamburgers, or the resurgence of coffee-shop culture driven by companies like Starbucks, Café Nero, and others. If the passion you have for your product or service can come through in your marketing strategy, it will nearly always be more effective – and always a lot more fun.

If you’re marketing something you don’t believe in? Chances are you won’t be very successful.

Read next: On-boarding a New Employee

Alternatively, learn about what direct marketing is here.

If you need a UK supplier of promotional products for your next marketing campaign, then contact Steel City for a quote here.