What is Marketing Mix?
Marketing mix is a set of controllable, tactical tools, product, price, place and promotion that the firm blends to produce the response it wants in the target market. The marketing mix consists of everything the firm can do to influence the demand for its product.
Table of Contents
- 1 What is Marketing Mix?
- 2 Marketing Mix Definition
- 3 Features of Marketing Mix
- 4 4Ps of Marketing Mix
- 5 Pepsi Marketing Mix (4Ps) Strategy
- 6 Marketing Mix Infographic
- 7 Marketing Management Topics
Marketing Mix Definition
The marketing mix is the set of marketing tools the firm uses to pursue its marketing objectives in the target marketPhilip Kotler
Marketing mix is a pack of four sets of variables namely product variables, price variables, promotion variables and place variables.Cravens et. al
Marketing mix is the term used to describe the combination of four inputs which constitute the core of a company’s marketing system—the product, the promotional activities and the distribution systemStanton
The marketing mix refers to the apportionment of efforts, the combination, the designing, the integration of the elements of marketing into a program or mix which on the basis of an appraisal of the market force, will achieve the market objectives of an enterprise in a given timeProf. Neil H. Bordon
Features of Marketing Mix
- Root of Marketing Process
- Reviewed Constantly in Order to Meet the Changing Requirements
- Changes in External Environment
- Changes taking place within the firm too necessitate changes in marketing mix
Root of Marketing Process
Marketing mix involves many crucial decisions relating to each element of the mix. The impact of the mix would be the best when proper weightage is assigned to each element and they are integrated so that the combined effect leads to the best results.
Reviewed Constantly in Order to Meet the Changing Requirements
The marketing manager is required to constantly review the mix and conditions of the market, and make necessary changes in the marketing mix according to changes in the conditions and complexion of the market.
Changes in External Environment
Changes keep on taking place in the external environment. For many industries, customer is the most fluctuating variable of environment. Customers’ tastes and preferences a period of time. The marketing manager has to carry out market analysis constantly to make necessary changes in the marketing mix.
Changes taking place within the firm too necessitate changes in marketing mix
Changes within the firm may take place due to technological changes, or changes in the product line, or changes in the size and scale of operation. Such changes call for correspondent changes in the marketing mix.
4Ps of Marketing Mix
The 4Ps of marketing mix consist of product, price, place and promotion, which together can be mixed to get the right approach for your business. Approach it like a recipe for business success.
Product is anything that can be offered to consumers in a market for attention, acquisition, use that might satisfy a want or need.
It includes physical product, services, persons, places, organisations and ideas. In simple words, It is a totality of ‘goods and services’ that the company offers the target market.
Price is the amount of money consumer will pay for the products or service.
Many factors like the demand of a product, cost incurred, customer’s ability to pay, prices charged by competitors, government policy etc. have to be kept in mind while setting the price of a product in a target market. In fact, pricing is most important decision which can affects the demand and profitability of the firms.
Below are the 8 pricing strategies that a marketer can follow while fixing the price.
- Cost-plus – Adds a standard percentage of profits to the future costs to manufacture the product. Evaluation of the fixed and variable costs is an important part of this pricing method.
- Value basis – Price is based on the buyer’s perception of value (rather than its cost). Here, the buyer’s perception depends on all aspects of the product, including the price of factors such as the quality of the image and prestige.
- Competition – Based on other companies competing products prices. Here, the organization prices compare the prices of their competitors and thus can directly monitor their competitors and price response to changes occurring in the market.
- Input Size – When entering a market is established a joint product price. Then, most companies have to cut down or too not to increase prices in order to keep control of the market.
- Discount – which is based on advertising, helps reduce prices and thus can attract new customers and expand the market share.
- Loss Leader – Sales takes place at a price lower than the cost of production in order to attract customers to the store to buy other products.
- Psychological – which has an impact on consumer behaviour, such as a price that looks better: 6.99 $ per pound instead of $ 7.00 per pound.
Goods are produced for the consumer. Goods must be available to the customer at a place where they can conveniently make a purchase. It is also referred to the distribution channels used to get your product to your customers.
Businesses that produce a product have two options to sell: selling directly to consumers or selling to a vendor.
The marketer must decide if supplying directly is appropriate for your product, whether it be sales through retails, door to door, e-commerce, on-site or some other method.
An advantage is meeting customers face to face and can make market change according to the consumer. It is a good place when the supply of the product is limited.
Reseller Sales (Intermediary)
Selling through an intermediary such as a wholesaler or retailer who will resell your product. It provides you with a wider distribution than selling direct while decreasing the pressure of managing your own distribution system. Also reduce the storage space necessary for inventory.
No matter whether you sell your product direct or through a reseller, you must decide what your coverage will be in distributing your product.
- Intensive distribution is the placement of a product in as many places or widespread, often at low prices.
- Selective distribution narrows distribution to a few businesses and usually upscale products are sold through retailers that only sell high-quality products.
- Exclusive distribution restricts distribution to a single reseller.
Promotion is an activity that communicates about the product or service and its merits to target consumers and persuades them to buy.
It helps to increase consumer awareness, leads to higher sales and helps to build brand loyalty. Promotion is done through a different mean of advertising, publicity, personal selling and sales promotion.
Advertising is a key channel to promote your product or service include the following:
- Radio advertisements are a good way to inform local customers about the business which is inexpensive.
- Television which is quite expensive but reaches to a more wider regional audience.
- Printed materials and Mails which includes newspapers, magazines, flyers allow the company to explain what, when, where, and why people should buy from you.
- Word of Mouth depends on satisfied customers (or dissatisfied customers) telling their friends, relatives about the value that the product provides.
- Generic: When no specific product is promoted, but rather a whole industry is advertised. Some of the common examples of these industries are milk, beef, and pork etc.
Pepsi Marketing Mix (4Ps) Strategy
Marketing Mix of Pepsi analyses the company which covers 4Ps (Product, Price, Place, Promotion) and explain the marketing mix of Pepsi. Marketing mix example is explained through Pepsi Marketing Mix.
Carbonated soft drink is the main product of the Pepsi Co. Carbonated beverages along with fruit juice, snacks etc. are the products in the marketing mix. Company has also ventured into products like Lipton tea and Tropicana juices.
Below is the current product lines of PepsiCo:
- Soft drinks
- Energy drinks
- Rice snacks
- Side dishes
- Breakfast bars
- Sports nutrition
- Bottled water
- Other merchandise
PepsiCo has a wide product mix which means they offer a larger number of the product line and brands. Due to competition with Cola, price is always competitive. They also offer various size rates. Pepsi is also known for the promotion discount and bulk buying discount.
PepsiCo’s main strategy are:
- Market-oriented pricing strategy
- Hybrid Everyday Value pricing strategy
PepsiCo has a global presence in more than 200 countries with a variety of products. The PepsiCo mainly focuses on the relationship with the distributors. Mostly PepsiCo places its distributing products at non-online retailers.
PepsiCo’s places for distribution are given below:
- Online merchandisers
Most of the products are available at retailers such as grocery store, convenience stores and supermarket.
PepsiCo majorly targeted its cold drinks and food products to the youth and family. They sign with celebrity personality and create a brand image. Advertisement is the primary tactic for marketing communications.
PepsiCo’s promotional mix, arranged according to significance:
- Sales promotion
- Direct marketing
- Public relations
Marketing Mix Infographic
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