The Marketing Mix and Why You Should Understand It

The marketing mix is the first thing taught in most business classes. One cannot run a successful business without knowledge of it. However, many small business owners or entrepreneurs have not had the formal training to know what is meant by this term. The phrase was invented fifty years ago to describe what should be instinctual for those in business. The phrase is still used today, though the definition and its importance will never be replace or irrelevant.

The marketing mix is made up of four P’s: Product, Price, Place, and Promotion. Packaging is the arguable fifth P. The product is what you make or do for another that you charge them for. Price is what it costs the customer. Place is where you sell it. Promotion is how people find out about it.

One must start with the product. You’ve got to find something that no one else is selling and then figure out how to get started. Is there something you think would be useful that you can’t find anywhere? There is your product. Products are difficult because they’re always evolving and competition is stiff.

Price is where things get really complicated because there is so much to think about. How much does it cost you to make or provide the product? If you’re going to make a profit, you have to charge more than what it costs you. But how much is too much? If there is competition, do you sell your product cheaper than there’s? How does that reflect on the quality of your product? How do consumer expectations fit in? Are there cheaper alternatives for customers?

Place is fairly simple. You want to sell your product in a place where it is likely to be bought. Who are you gearing the product to? Why? Do you have a web site? Can you expand your sales region? Do you want to?

No one is going to buy your product, however, if they don’t know it exists. This is where promotion comes in. You need to get people talking about your product, if it’s through viral marketing, or magazine ads, or product placement in movies.

The new wave of business teachers is starting to use the four Cs: consume, cost, convenience, and communication. Cost and communication are not any better alternatives for price and promotion; they’re just alliterative with the other two Cs, which ARE better definitions. Consumer focuses more on who is buying and what you can give to them, rather than looking at the product alone.

Convenience is a new concept to the marketing mix that is hugely influential in the success of a product. Place is part of convenience. The desired consumer has to be able to get to the product in order for its purchase to be convenient. But you must also think of any processes one must go through to get the product. If it requires any other products to make it work (batteries not included, e.g.), and what the general mindset is about such a product.

Since 2005, EFG Marketing Solutions has been providing professional results for their Fortune 500 clients. With advice from EFG Marketing, their clients have been improving their bottom line for over 5 years.