The “Marketing Mix”
It is a foundational concept in the marketing field and it should be the prevalent framework for marketing management decisions for any organization, regardless of their size.
The original concept is almost a century old and it talks about the 4 Ps:
Later by the 1960s the services marketing field added 3 additional areas that came to supplement the original 4:
- Physical Environment
Performance was later on added to the mix.
The original marketing mix, or 4 Ps, as originally proposed by marketer and academic E.J. McCarthy, provides a framework for marketing decision-making. McCarthy’s marketing mix has since become one of the most enduring and widely accepted frameworks in marketing
Product refers to what the business offers for sale and may include products or services. Product decisions include the “quality, features, benefits, style, design, branding, packaging, services, warranties, guarantees, life cycles, investments and returns”.
Price refers to decisions surrounding “list pricing, discount pricing, special offer pricing, credit payment or credit terms”. Price refers to the total cost to customer to acquire the product, and may involve both monetary and psychological costs such as the time and effort expended in acquisition.
Place is defined as the “direct or indirect channels to market, geographical distribution, territorial coverage, retail outlet, market location, catalogues, inventory, logistics and order fulfilment”. Place refers either to the physical location where a business carries out business or the distribution channels used to reach markets. Place may refer to a retail outlet, but increasingly refers to virtual stores such as “a mail order catalogue, a telephone call centre or a website”.
Promotion refers to “the marketing communication used to make the offer known to potential customers and persuade them to investigate it further”. Promotion elements include “advertising, public relations, direct selling and sales promotions.