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How Does the Marketing Mix Help the Business Flourish?
Before explaining anything, let us first understand what is marketing mix.
The marketing mix is a mixture of price, product, place, and promotion on which an organization focuses to differentiate its product from the rest of the market. In the case of the service industry, three more terminologies are added: physical evidence, people, and process. But we will talk about these three later in this article. First of all, let's talk about the four main constituents of the market mix: product, place, price, and promotion.
So in a marketing mix, a company can either put efforts into the Product, price of a product, a place, or promotional activities. It is called the marketing mix because a marketer uses to put efforts into either one or a combination of the mentioned p's.
Benefits of Marketing Mix
So let's see how a customer can focus on the product to differentiate it in the market. We will see how a marketer can create value for the product by using the product.
Giving a lot of variety of products − An organization that gets established in the market can offer a lot of variety in its products. For example: - Let's take the example of Cadbury. It is a supreme name when we talk about chocolates because it has a lot of product variety in its domain. Its marketers focus on retaining customer loyalty by increasing the number and variety of products in their product line.
Quality − Some brands are named for their quality to get retained in the market. For example, let's take the example of Titan. It's a massive name in the watch industry. So some companies put a prime emphasis on the quality of their product.
Features − Many products provide different features. Smartphones are an example.
Brand name − Brands like ITC and Nestle are the ones everyone knows. Many businesses focus on the brand name to catch the eye of a variety of customers.
Packaging − We can take the example of Cadbury. Everyone knows how its unique packaging attracts customers.
Now let's understand how promotion helps the business prosper
Promotion is generally a communication with the customers to get insights into the product and show how it is different from the rest of the product. In today's era where digital media has made it very simple the marketers to showcase their products, marketing is very easy. Let's see the different methods of promotion −
Now let's see how price plays a key role in business
List price − A list price is the suggested retail price of any product. A business can work with the retail price to get the maximum number of customers.
Discounts − Discounts are different mark-offs that a business can provide to its customers to get them on board.
Allowances − Trade allowances are given to trading channel partners. Trade channel partners are distributors or wholesalers, forwarding agents, or brokers who help the product get transferred to different consumers. To get channel partners, the product may have to be a well-known brand or incentivize the channel partners. There are also consumer allowances. For example, selling the old ones and getting discounts on the old ones.
Payment period − With the advent of credit cards, consumers can get a payback period to make a smooth and easy purchase.
Now let's see how a place can help the business prosper
Channels − There are different channels of marketing. For example, business-to-business or business-to-consumers.
Coverage − There are mainly three types of coverage: intensive, where the product is available everywhere; exclusive, where the product is very limited; and extensive, which is in between the two.
Assortments − Assortments like small, large, XL, and Double XL give customers their comfort zone. The benefit of assortments is that they give customers various choices, but at the same time, a customer can get confused or influenced by the competition.
Location − The location of the product helps the consumers buy it easily.
Transportation and logistics − transportation is a vivid factor in the location of a particular business.
Inventory − The inventory location of any product is one of the factors that make it conveniently available to consumers.
Marketers use the above four marketing mixes to give customers what they want. Now, based on the one above, let's understand the four C’s of marketing
Product − customer solution
Place − Convenience
Promotion − Communication
Price − cost to customers
Every product must solve some problem. This is the main function of any product that comes onto the market. Place determines the convenience of a product. For example, Maruti Suzuki is available in every corner of the country. Promotion is communication between the marketer and the consumer. Consumers are now prosumers. Consumers actively take part in the outcome of the product or service. We can take the example of the entertainment industry, where the feedback of the customers changes the whole plot of their story.
Now in the service industry, as mentioned at the beginning of the article, there are three more Ps.
Physical evidence − Since services are intangible, we need some evidence to prove it. Primary and secondary sources of information can be used to gather information related to the services. For example, to choose from the best colleges, we can either see their ranking, attend their webinar, or just go and study at the institute.
People − We do not get to meet the product while using the product. But in the case of services, we use to meet with the people related to them. For example, we can go to a pizza shop where the staff can tell us about the product and change the whole mindset of the consumers.
Processes − There is a whole mechanism involved in establishing any service industry. For example, selling software is a step-by-step process by which its services are delivered. Nowadays, automation has reduced the human element in the process. Automation minimizes variability and promotes standardization.
So the 4 P’s of marketing help any product get visible in the market, and the rest 3 P's, when added, help the services industry be utilized on a vast scale by the consumers.
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