The marketing mix (also known as the P’s) is a framework for building a strategic perspective for your product.
The marketing mix consists of;
Product
Price
Square
Promotion
People
process
Physical evidence
Building the foundations of your product through your marketing mix should result in success, however it depends on how you implement them and use the principles in practice.
Marketing is a science, by that I mean there is no hard and fast rule for success; however, there are structures similar to creating music that you must follow. Music today is built around thirds and sixths and other combinations are considered to sound wrong, but people will constantly push the limits. Marketing planning is similar: you have to work with the marketing mix to be successful, but you can make your own adjustments and interpret the 7Ps differently.
The story behind the marketing mix comes from Neil Bordon in 1953 and has been edited, adapted and improved ever since. The original combination consisted of 4Ps: product, price, place, and promotion, while people, process, and physical evidence were added later.
Why do I need a strategy?
Some people may think they have a “product that will sell itself” or “will fly off the shelf” – these are all expressions I’ve heard before. Typically, people who think like this haven’t done their homework and thought about who will buy the product, how much they’ll spend, or the process of getting the item. While they may have a “product that will sell itself” over time, they still have to tell people that their product exists.
There are too many alternatives to list all the combinations that companies could use when creating their marketing plan. There must be a marketing mix for each route to market. For example, a furniture company may sell direct to the consumer but also wholesale to other companies. The strategy to bring the product to market is completely different.
While the product remains the same, i.e. the furnishings, the price, the promotion, the place, the people, the process, and the physical evidence are all different;
Direct to consumer (B2C)
Product: the same product, usually purchased in a single setting
Price: As it is a single price, it will not generally discount, although you may have a special offer.
Place: sale in the store with customers coming to you
Promotion: through newspapers, brochures, posters, sales promotions or even television.
People: sales team in the store where the end user makes the purchase decision
Process – Direct contact with the consumer
Physical evidence: concerned about the layout of the store, how accessible is it, is it clean, etc.?
Alternatively, the marketing strategy for wholesalers will be completely different;
Wholesale (B2B)
Product: the same product, usually buying several pieces.
Price – Because the business is buying multiple items at once, it can have economies of scale and offer a discounted price (this helps it sell more volume).
Place – Usually you would have to deliver the furniture to your customer.
Promotion: A sales team or sales contact will be required to keep the customer satisfied and arrange for repeat purchases.
People: Your company’s B2B sales team, delivery drivers, and business contacts are all involved.
Process: The customer will want support and it will not be a one-time sale, there will be relationships to build and an intermediary support team is necessary. The client will sell their shares and expect a level of contact.
Physical evidence: The customer is concerned about the assistance he receives from the furniture company, how he is treated, and what standards the furniture store employees set.
Case study
The right strategy can make a company make millions. Dell is an example of a company that changed the market, found a niche, and exploited it. Dell only sells computers online, which means cutting out the middleman and saving the end user money. By having a different location/distribution strategy, they have created a new model for selling computers and have captured a large part of the market. I should mention that Dell has also changed many other parts of their marketing strategy, including the product: they build their own PCs instead of reselling other brands.
Dell has made their marketing mix work for them. They have changed their pricing structure to be cheaper than competitors, the quality is good, they do a lot of advertising and they have a well established brand, the process means you get a point of contact to help you through the process.
I don’t work for Dell and they are not one of my clients. One negative I hear all the time is that their sales team is too “pushy” and people end up buying their computer somewhere else. This needs to be identified through your market research and may be something that changes in the future.
The importance of the mix.
Summary
Successful businesses are built on a foundation of solid marketing planning that begins with the marketing mix. Always consider your customer, who will be the person who buys, uses and tells other people about your product.