The Traditional 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 5, or 7) variables in an optimal way. It is important to understand that the Marketing Mix principles are controllable variables. The Marketing Mix can be adjusted on a frequent basis to meet the changing needs of the target group and the other dynamics of the marketing environment.
1st ‘P’ of Marketing – Product
Customer Touch points – Functionality; Quality; Appearance; Packaging; Brand;Service; Support; Warranty.
The Product should fit the task consumers want it for, it should work and it should be what the consumers are expecting to get. Apart from this, while crafting the product one needs to keep in mind that consumers should be willing to or should be able to pay for it. Incapacity to pay for the product technically leads to low demand.
2nd ‘P’ of Marketing – Price
Customer Touch points – List Price; Discounts; Financing; Leasing Options; Allowances.
It is important to assess how much are the intended customers willing to pay for the product. Nowadays, the consumer is very sensitive for price of the product. Though in a market like India, consumers want to most of value for money product, however, extremely competitive low rate might be perceived as low on quality. Thereby, marketers need to chalk out an ideal pricing structure to get the most of their product life cycle. Pricing structure is also important not only for end consumers but also channel partners as they the ones increasing product’s reach and should end up making adequate money for their efforts.
3rd ‘P’ of Marketing – Place
Customer Touch points – Locations; Logistics; Channel members; Channel Motivation; Market Coverage; Service Levels; Internet; Mobile.
The product should be available at the right place at the right time and in right quantity for a product to flourish. Placement of the product is very much effected by the pricing structure and how enthusiastic channel partners are with the product.
4th ‘P’ of Marketing – Promotions
Customer Touch points – Advertising; Public Relations; Message; Direct Sales; Sales; Media; Budget.
It is important to educate customers about your product. The communication can be around need of the product, utility of the product or how to use the product. Communications in all forms strike a recall with the product and should be used wisely. As small change in the way one communicates about the product can lead to drastic change in sales numbers.