The Marketing Mix is a business fundamental that most organizations follow in order to devise effective marketing strategies. Originally, the market mix consisted of 4 Ps: a) Product, b) Price, c) Place, and d) Promotion. However, as markets changed and consumer demands grew, three more Ps were added to the mix, namely a) Physical Layout, b) Provision for customer service, and c) Processes. However, marketing managers need to be alert to changing market situations in order to adapt their marketing mix effectively. When marketing their products firms need to create a successful mix of: a) the right product, b) sold at the right price, c) in the right place, and d) using the most suitable promotion [ CITATION The111 \l 1033 ].
The Product: The old school approach to a product was to make the highest quality products at the lowest possible price and it was assumed that this would be enough to draw in clients. However, as customer demands have grown, this component of the marketing mix has had to adapt itself. Today, marketing managers have to make products that are designed to keep up with fashion and fads. The packaging of the product has to be in a manner that appeals to consumers as this can be a major differentiating factor from competitors. Consumers are highly conscious on how ‘safe’ a product is for use. Non-allergic, no preservative, no added MSG, low sugar and such are common features of products today. Finally, as environmental awareness has taken its hold on consumer thought, products increasingly need to made in an eco-friendly way and need to be bio-degradable.
The Price: It is not enough to fix a price that provides a healthy profit over cost. Different approaches have developed to this component as a result of changing market scenarios:
a) Competitive pricing: If your product is sold at the lowest price regarding all your competitors, you are practicing competitive pricing. Sometimes, competitive pricing is essential. For instance, when the products are basically the same, this strategy will usually succeed [ CITATION Fre051 \l 1033 ].
b) Cost Based pricing: This is the old school method where a fixed margin is added to the cost of a product. This method is good only when consumer orientation and competition are not relevant like when selling to government agencies.
c) Value Based Pricing: This method fixes price based on the value the product delivers to the customers. This method is most often used in the luxury products and services business.
The Place: The place is where you can expect to find your customer and consequently, where the sale is realized. Knowing this place, you have to look for a distribution channel in order to reach your customer [ CITATION Fre051 \l 1033 ]. There are different distribution channels that can be used: a) Selling your product directly to your customer – this method can be used only when an organization has a good sales force or if it has a small, easy to manage business, b) selling your product to retailers – when the organization chooses to distribute its products through partners or retail outlets, and c) selling your product to wholesalers – this method is good for those organizations who can produce products cheaply in bulk and sell it to wholesalers with a small profit margin.
The Promotion: Functions like advertizing and public relations are part of promotions. The promotion mix includes magazines, newspapers, brochures, direct contacts, and television coverage [ CITATION Res11 \l 1033 ]. In the last few years, online social network marketing has emerged as a major new field in promoting and marketing. When choosing an advertizing medium and promotion strategy, the following should be kept in mind:
a) Who is the target audience and how many consumers the organization intends to reach.
b) How often will the advertisements be run and for how long?
c) Whether the advertizing campaign effectively delivers a message that will convince consumers to purchase the product.
Conclusion
An entrepreneur needs to have a set of skills and character traits that enable him or her to comprehensively address the requirements of a marketing mix. Especially in the case of SMBs and SMEs, an entrepreneur needs to know how to adapt the product, place, price and promotion to the prevailing market conditions. Responsiveness and adaptation to change play a crucial role in all the aspects of a marketing mix and allows the leader to capitalize on opportunities and convert them into direct business gains. Having a keen eye for risk management and being prepared for unforeseen contingencies enables an entrepreneur to make decisions and implement them effectively in order to ensure the present and future success of his or her business.
Works Cited
Free World Academy. Marketing Mix. 2005. 13 May 2011 <http://www.freeworldacademy.com/newbizzadviser/fw15.htm>.
Responsive Management. Marketing Plans. 13 May 2011 <http://www.responsivemanagement.com/marketingplans.php#marketingstrategy>.
The Times 100. Marketing mix (Price, Place, Promotion, Product). 2011. 13 May 2011 <http://www.thetimes100.co.uk/theory/theory--marketing-mix-(price-place-promotion-product)--243.php>.
