Marketing mix is the set of controllable tactical marketing tools- product, price, place, promotion- that the firm blends to produce the response it wants in the target market. Consumer value and relationships are the center of marketing strategy and programs. Through market segmentation, differentiation and positioning the company divides the total market into smaller segments, selects the segment which it can serve best and the decides how the company wants to bring value to the target customer. The marketing mix consists of product, price, place and promotion decisions explained below.
- Product: Product means the good and services combination that a company offers to the target market. Product is the most important element of marketing. It is the good or service, which is sold to the customers for which effective marketing is required.
- Price: Price is the amount of money that customers must pay to obtain the product. Pricing is a very sensitive decision and has to be taken with utmost care as it may affect the profits of the firm.
- Place: Place includes company activities that make the product available to target customers. Place includes the various channels of distribution and the intermediaries like dealers and retailers involved in the distribution process.
- Promotion: Promotion means activities that communicate the merits of the product and persuade target customers to buy it. It includes advertisement, online promotions, personal selling, publicity and so on.
Lately to meet the increasing technological advancement and the different needs of the people 3 more P’s have been added.
- People - The individuals involved in the sale and purchase of products or services come under people.
- Process - Process includes the various mechanisms and procedures which help the product to finally reach its target market
- Physical Evidence- With the help of physical evidence, a marketer tries to communicate the USP’s and benefits of a product to the end users.