Marketing mix is one of the most basic concepts in marketing. The traditional marketing mix refers to the four (4) P's namely: product, price, place and promotion.
- Product- includes not only the physical unit but also many other factors, including the package, warranty, brand, post sales services and company image
- Place- also refers to physical distribution or the intermediaries who store, and transport the products to and from the customers after manufacturing the product. It also refers to the venue where the product is sold like department stores, grocery chain and so on.
- Promotions - includes personal selling, advertising, public relations and sales promotions. The purpose of promotion is to educate, persuade, and to remind the customers about the benefits of the product.
- Price - this is the monetary value that the customer is willing to give up to obtain the product. A company can either lower their product to boost sales or they can jack up the price to create a distinct image that their product is premium.
Marketing practitioner must design strategies around these four P's to achieve the ultimate goal of marketing which are: to satisfy the needs and wants of the customers; and to satisfy the profit needs of the company. To achieve these, the four elements must be blended or “mix” very well to achieve optimal results. Any mix is only as good as its weakest component. An excellent product with a poor distribution system will likely fail.
A marketing mix to be considered successful must have a competitive advantage over competition. If the mix fails to create that competitive stand, it will not achieve the ultimate objective of satisfying the needs and wants of the customers and creating profit for the company.
