Marketing Mix – What Is The Marketing Mix?
Marketing Mix : The objective of applying this analysis is to know the situation of the company and to be able to develop a specific strategy for subsequent positioning. One way to start is by conducting market research.
This variable establishes the information on the price of the product at which the company offers it on the market. This element is very competitive in the market, given that it has essential power over the consumer, and it is also the only variable that generates income.
By adjusting the price, the entire marketing strategy will be affected, as will the demand for the product.
Likewise, it is important to take into account the psychological value that the product offers when establishing the sale price. Another important factor is production costs.
This variable encompasses both the product (core product) itself that satisfies a certain need, as well as all those elements/services that are supplementary to that product itself.
The company must also identify the life cycle of the product to stimulate demand when it decreases. It should be noted that when talking about products, tangible and intangible ones are included, such as services.
This variable analyzes the channels that a product goes through from the moment it is created until it reaches the hands of the consumer. In addition, we can also talk about storage, points of sale, the relationship with intermediaries, their power, etc.
The entrepreneur must carry out an exhaustive inventory management to ensure that there are sufficient stocks .
Product promotion analyzes all the efforts that the company makes to publicize the product and increase its sales to the public, for example: advertising, public relations, product localization, etc.
A large part of the promotion strategy includes analyzing the return on investment or ROI. That is, if the fact of investing in social networks or in an advertisement on television has reported income.
The 4Ps And 7Ps Marketing Mix Model
The marketing mix strategy is usually associated with 4Ps. However, when it comes to services rather than products, it is common to see a 7Ps model.
In addition to the original 4 Ps of price, product, distribution, and promotion, people, process, and physical evidence are added.
The first of these aspects, people, responds to factors such as employees and company culture. Employees and their culture will determine the service to be provided.
On the other hand, the process serves to identify how the service is consumed or used, in addition to checking whether the service provision process is adapted to the company in order to maximize profit.
Finally, there is the physical evidence. All services have physical elements even when they are intangible. From digital files to paper documents, such as invoices , every service includes a physical part.