Marketing Mix (4Ps)

The Marketing Mix model (also known as the 4 P's) can be used by marketers as a tool to assist in defining the marketing
strategy. Marketing managers use this method to attempt to generate the optimal response in the target market by
blending 4 (or ! or ") #ariables in an optimal way. $t is important to understand that the Marketing Mix principles are
controllable #ariables. The Marketing Mix can be ad%usted on a fre&uent basis to meet the changing needs of the target
group and the other dynamics of the marketing en#ironment.
Product
'istorically! the thinking was( a good product will sell itself. 'owe#er there are
no bad products anymore in today's highly competiti#e markets. Plus there are
many laws gi#ing customers the right to send back products that he percei#es as
bad. Therefore the &uestion on product has become( does the organi)ation
create what its intended customers want* +efine the characteristics of your
product or ser#ice that meets the needs of your customers.
,unctionality- .uality-
/ppearance- Packaging-
0rand- 1er#ice- 1upport-
2arranty.
Price
'ow much are the intended customers willing to pay* 'ere we decide on a
pricing strategy 3 do not let it %ust happen4 5#en if you decide not to ask
(enough) money for a product or ser#ice! you must reali)e that this is a
conscious decision and forms part of the pricing strategy. /lthough competing
on price is as old as mankind! the consumer is often still sensiti#e for price
discounts and special offers. Price has also an irrational side( something that is
expensi#e must be good. Permanently competing on price is for many
companies not a #ery sensible approach.
6ist Price- +iscounts-
,inancing- 6easing
7ptions- /llowances.
Place
/#ailable at the right place! at the right time! in the right &uantities* 1ome of
the recent ma%or changes in business ha#e come about by changing Place. Think
of the $nternet and mobile telephones.
6ocations- 6ogistics-
8hannel members-
8hannel Moti#ation-
Market 8o#erage- 1er#ice
6e#els- $nternet- Mobile.
Promotion
('ow) are the chosen target groups informed or educated about the
organi)ation and its products* This includes all the weapons in the marketing
armory 3 ad#ertising! selling! sales promotions! +irect Marketing! Public
9elations! etc. 2hile the other three P's ha#e lost much of their meanings in
today's markets! Promotion has become the most important P to focus on.
/d#ertising- Public
9elations- Message-
+irect 1ales- 1ales- Media-
0udget.
The function of the Marketing Mix is to help de#elop a package (mix) that will not only satisfy the needs of the customers
within the target markets! but simultaneously to maximi)e the performance of the organi)ation. There ha#e been many
attempts to increase the number of P's from 4 to P's in the Marketing Mix model. The most fre&uently mentioned one
being People or Personnel. 0ooms and 0itner ha#e suggested a "3Ps approach for ser#ices3oriented companies.