What is marketing mix? What are its main elements? Explain.

Marketing mix is the combination of four important constituents of marketing system. It is a system which comprises the following subsystems of marketing

• Price

• Product

• Promotion and

• Place

So we call it 4 P's of marketing.

A) Product: It involves planning, designing and developing right type of product to satisfy the customers need. It involves following decisions –

• Product design – features, quality

• Product assortment – product range, product mix, product lines

• Branding

• Packaging and labelling

• Services (complimentary service, after-sales service, service level)

• Guarantees and warranties

• Returns

• Managing products through the life-cycle

B) Price: It involves decision regarding price, pricing policy, discount and credit. It involves taking decisions regarding the following –

• Price strategy

• Price tactics

• Price-setting

• Allowances – e.g. rebates for distributors

• Discounts – for customers

• Payment terms – credit, payment methods

C) Place: It refers to the location where products can be made available for sale and purchase. It involves decisions regarding type of middlemen, means of transport, storage system, etc. It involves taking decisions regarding –

• Distribution Strategies

• Franchising

• Market coverage

• Channel member selection and channel member relationships

• Assortment

• Location decisions

• Inventory

• Transport, warehousing and logistics

D) Promotion: It is concerned with informing and persuading the customers about the product. It involves taking decision regarding –

• Promotional mix - appropriate balance of advertising, PR, direct marketing and sales promotion

• Message strategy - what is to be communicated?

• Channel/ media strategy - how to reach the target audience

• Message Frequency - how often to communicate