Product, Price, Place, Promotion.
If you read the first line and thought “ah the 4Ps of marketing”, then you probably already know a thing or two about the marketing mix. And if you really know this model, you’ll know there are three more: People, Process, and Physical Evidence. But maybe you're wondering: What is the marketing mix?
Before we answer that question, let’s go back to basics and understand where the term came from; marketing. As many modern marketers have learned, the foundation of marketing is putting the right product in the right place, at the right price, at the right time. Simple right? The hard part is doing it well.
Marketing is all-encompassing as it’s present in all stages of the business cycle: market research, analysis, product development, distribution methods, sales, and understanding your customer’s interests. And marketers use campaigns as a way to execute this journey.
So, what is a marketing mix exactly? Read ahead to learn what it is and why it’s important to master it as a marketer.
Organizations have always used marketing solutions to “sell” their work, with the marketing mix being one of them. To set the foundation, the marketing mix definition states a set of marketing tools a business uses to promote a company’s brand or product in the market. And traditionally, the model was built from the 4ps of marketing: Product, Price, Place, and Promotion. But as marketing evolved, so did the strategy. With People, Process, Physical Evidence as additions, expanding to 7ps of marketing.
Businesses methodize the elements of the marketing mix to drive marketing decisions at every level. It helps them to:
But before you start using the 4Ps or 7Ps of marketing, you need to decide the persona of your target audience. Understanding the details of who you are selling to, will help you determine the details of your marketing mix. You can’t get started without this.
The 4Ps of marketing are the foundation of the idea of the mix and have been used since the 1960s. The 4Ps stand for:
The marketing mix product simply refers to what is being sold. When we talk about the product, we mean elements like quality, packaging, design, and brand. In developing the product, you must ensure it meets the demand for your market, aka does your target market want or need this?
The life cycle also must be considered in this stage, which includes the growth, maturity, and sales decline phase. Offering a better product to your target audience over your competitors will ultimately allow you to take home the win for this element.
Here are 5 questions that will help define this element:
Come on down and play The Price is Right! Well, kind of, just for marketing.
In the marketing mix, price refers to the price your customer is willing to pay. Hello, product value!
The price inherently must be higher than the cost of production, as this determines your profit or survival. And adjusting the price not only has a big impact on the sales and demand for the product but also, ultimately shapes the perception of your brand.
Tip: A lower price is associated with inferior products, especially when consumers are comparing your prices alongside your competition. Consequently, pricing too high can result in costs outweighing the benefit. Where’s the sweet spot?
So when setting the price, marketers should consider the value the product offers and evaluate different pricing strategies.
Answer these 5 questions to help you get started with this marketing mix element:
Within the spectre of the marketing mix, place means the distribution and availability of your product for potential customers.
And you can’t talk about place without talking about your target audience. This element comes with a deep understanding of the target persona. Once you have mastered knowing the ins and outs of your target customers, you will discover the most efficient distribution channels.
So how do you put your product in the right place? Here are 5 questions that will help you define this element belonging to the 4Ps of marketing:
Get the word out!
When talking about the marketing mix process, promotion means who, what, and how. What is communicated, who it is communicated to, how that audience is reached, and how often promotion happens. Its methods like:
The main purpose of marketing mix promotion is to boost brand recognition and sales. Nail these 5 questions, and you’re on the road to a promotion strategy:
Sometimes, the 4Ps of marketing can be expanded to the 7Ps: People, Process, and Physical Evidence. The 7Ps of marketing help a company define gaps that affect the marketing of its product.
Let’s take a look at the details.
Businesses are reliant on the people who run them, right? So it’s a no brainer having the right people is essential as they are as much a part of your business offering as the products/services you are selling. This includes things like employee performance, appearance, and customer service.
So determining what makes up the ”right people” for your business can vary, but it should encompass these three aspects:
Tip: Having the right people is an internal advantage that affects your position in the market.
The marketing mix process encompasses the how in which your product or service is delivered to customers. It can be your sales funnel, a distribution system, and other systematic procedures to ensure your business is running effectively. And you want to make sure that your process is well organized to minimize costs.
Other examples include the order in which employees perform tasks, the number of queries salespeople receive, or how performance is tracked and measured.
The 7Ps of marketing simply cannot ignore physical evidence. It can be tangible or intangible and there should be evidence that the service was delivered. A tangible example is product packaging, receipts, or contact experience. Intangible physical evidence is the perception of a business’s product in the marketplace.
Consistent branding across communication channels is a way to influence consumers’ perceptions, to the point where when they hear a word, sound or phrase, your brand is the first thing to come to mind.
For example, when you think of fast food, who do you think of? Most people will say McDonald’s. You instantly know their presence in the marketplace. Ding ding intangible physical evidence!
Now that we have all of the Ps covered, let’s move on to how it’s applied to the digital landscape.
This is how a business achieves its marketing goals using digital technologies. And as more business is done online, digital marketing solutions become more and more popular.
Paid, owned, and earned media are the ingredients needed for a great digital marketing mix and should make up your marketing reports. Simply put, by categorizing your efforts into paid, owned, and earned media you identify how your content achieves a seat at the audience table.
It looks something like this:
*Source: Search Engine Journal
Here, you’re paying for visibility or exposure to a particular audience on a platform that you don't own. It allows you to get in front of a new audience more quickly than organic strategies but they can only stretch as far as your budget allows. Examples include:
This refers to marketing that occurs on any property that you own and control. The great part about this is you get to include the content you want your customers to see. Here are some examples:
Here you have little to no control. This is someone else's property that offers you free placement in front of a new audience (i.e., a person says something about you for “free”). In the early days, this was referred to as Public Relations but has expanded with all the digital platforms available.
The great part about earned media is that it puts you in front of a new audience without paying for it. The caveat is that you don’t have control over the messaging. Examples include:
All three of these areas play an important part in the digital marketing mix and help you understand your financial efficiency and how you stack up against your competition, which is why we highlighted them in our digital marketing insight reports.
By now you should understand what the marketing mix is. You might be wondering if you’re using the strategy correctly or even how to use it for your business if it is new to you.
Well, start by thinking about the following: What percentage of each element of the 7Ps of marketing make up your marketing mix?
We have one last thought...is there perhaps an 8th P?