The marketing mix is a business tool which is especially useful when selling a product or service. Introduced in 1960, this marketing tool evaluates the attractiveness of an offer through various different factors — the “Ps”. This article will explain what the marketing mix is, and why it is relevant to you.
What are The Ps?
When first conceived by Michigan State University professor E. Jerome McCarthy, there were only 4 Ps included in the marketing mix: Product, Pricing, Place and Promotion. Since then, an additional 3 variables have been added, which are especially significant in service marketing — these are Physical evidence, People, and Process.
What is the relevance of each P?
In a future article, we will explore each of the 7 Ps in depth, but it’s still worth explaining what each of them refer to, and why they are relevant to making sales. Without further ado:
The “4 Ps”:
- Product — When trying to sell something, the most important variable is, undoubtedly, the product or service you are trying to sell. An attractive product is essential in creating an attractive offer.
- Price — Of course, the cost of that good or service is also relevant. The price helps to determine how likely a customer is to buy a product, and how much profit the seller will be able to make.
- Promotion — Things can’t be sold if nobody knows that they exist. Companies have to do some promotion to ensure that potential customers hear about their product or service.
- Place — This is the final factor of the original four Ps, and takes into account the ability of the customer to receive the good or service.
The additional 3 Ps (making the “7 Ps”):
- Physical evidence — Like the other two additional variables, physical evidence is particularly important when it comes to selling a service. Customers like to see proof that ‘it’ works before buying.
- People — Clients are much more likely to purchase a service if they find themselves in good relations with the people who are selling it. As such, this is also essential in determining the appeal of a service.
- Process — The execution of a service is also a big factor for potential clients.
What can the marketing mix be used for?
As the name suggests, the marketing mix is a mix of different factors that warrant attention should you wish to successfully market a product or service. Instead of mindlessly throwing a product on the market, the various variables in the marketing mix will make you reevaluate what value you are providing and how you are doing it.
One approach to using the marketing mix is evaluating each of the factors through different questions. Ask yourself “What am I selling?” and “Why is it valuable?” to gain insight about your product. You might also ponder “Is it worth it for the customer?”, ‘How will the customer find out about it?”, or “How will the customer receive it?” to analyze the other 3 main Ps.
If you can think of a good answer for each of those questions, and others, then your product/service is probably ready for the market.
That’s all there is to say about the marketing mix. Be sure to stay tuned for my next article here on PESTLE Analysis which will pick apart each of the variables in further depth, helping you to make sense of this invaluable concept.
Image © Kgtoh | Dreamstime.com – Marketing Mix Background Concept Photo