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The marketing mix
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The marketing mix is the set of decisions a business makes to sell its product. It is often called the 4 Ps.
The 4 Ps
Product: what is sold, its features and design.
Price: how much customers pay.
Promotion: how customers find out about it.
Place: where and how it is sold.
Price: how much customers pay.
Promotion: how customers find out about it.
Place: where and how it is sold.
Balancing the mix
The Ps must work together. A luxury watch needs a high price, premium promotion and exclusive shops.
The mix is balanced against the competitive environment: a business with many rivals may compete on price; one with a unique product can charge more.
When customer needs change, the mix must change too.
The mix is balanced against the competitive environment: a business with many rivals may compete on price; one with a unique product can charge more.
When customer needs change, the mix must change too.
Technology and the mix
E-commerce has changed place: products can be sold online.
Digital communication has changed promotion: social media, emails and apps.
Prices can be compared online instantly, which puts pressure on price.
Digital communication has changed promotion: social media, emails and apps.
Prices can be compared online instantly, which puts pressure on price.
A new energy drink is sold cheaply, advertised on social media and sold in corner shops. Which P is 'sold in corner shops'?
- Product: the drink. Price: cheap.
- Promotion: social media.
- Place: where it is sold.
Answer: Place
The marketing mix is product, price, promotion and place. The four must fit together and suit the competition and customer needs. Technology has changed place (e-commerce) and promotion (digital).
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