What is Marketing Mix?
The Marketing Mix is best known for its composition in “4Ps” and is a comprehensive marketing plan designed to reach the intended target audience.
In this strategy, the company considers a set of tactics that can produce the effects it wants in the market in which it operates. These measures focus on four variables: Product, Price, Place and Promotion.
A marketing mix consists of creating a comprehensive marketing plan with a focus on four distinct parts. These four parts are in the hands of the company’s management and can be used to improve the visibility of consumers to the product.
The strategy can be applied to products already on the market or since the launch of a new product. What matters is that the product offered must meet the characteristics desired by consumers.
The “4Ps” classification was introduced by E. Jerome McCarthy in the 1960s and popularized in later years by other names like Philip Kotler. They are originally known in English as Product, Price, Place and Promotion. Get to know the four elements of the Marketing Mix.
Knowing the 4Ps of the Marketing Mix
Until the middle of the last century, companies still produced in mass and considered only the benefit they could offer to those who bought their products.
The marketing mix introduced the idea of influencing demand through the product, increasing the focus beyond the product. The strategy started to focus more on increasing potential consumers than on increasing the product offer.
The product offered must satisfy the needs of the people who need it. But more than that, it must differentiate itself from other competitors that also satisfy those same needs.
A product can take different forms, such as a tangible asset, a service, an organization, an asset or even an idea. The important thing here is that it meets the needs of a group of consumers.
For the product to be successful in the market, administrators need to assess the life cycle in which it is. This way they can understand what is the best level for investment: high for a rising product or reduced for a declining product that needs renovation.
The price of the product indicates how much consumers are willing to pay for it and the company must recognize the value it has in the market.
Management must set the price by accounting for costs, considering competitors and knowing the structure of the market. A very high price can either add value to the product or make it very expensive.
The characteristics of the product say a lot about where it should be marketed. Some are widely distributed, such as in supermarkets, and others are less widely distributed and in more appropriate locations.
In this variable it is also possible to consider whether the product can be sold in physical locations, over the internet or both. Some companies also consider selling by phone or other means, depending on the product.
In the promotional mix, companies take initiatives that promote consumers’ knowledge of the product.
For this, there are strategies that involve advertising and the dissemination of what can be offered with the purchase of the product. This is a step where the company communicates with the public.
The dissemination can be made by different channels, such as television, internet, in the streets with leaflets or billboards, among other means. It all depends on what can be done by the company.
Marketing Mix Example
In Brazil and in the world there are examples of large companies that have adopted marketing mix methods and managed to reinvent the brand.
One of the best known examples was the Havaianas brand, which from the 1990s changed several parameters of its marketing according to the 4Ps:
- Product: the company bet, above all, on the diversification of the brand, changing from just one model to several, with different colors and types.
- Price: the company originally sold products at a very low price. With diversification, he was able to charge higher prices and change the value that people had for the brand.
- Praça: the slippers that were only sold in supermarkets, started to be sold in stores and even in their own store.
- Promotion: one of the company’s great tactics has always been striking advertising, featuring famous personalities, comic acting and catch phrases.
With the marketing mix, the company was able to change people’s view of its product, value and increase revenues and even expand abroad.