This cocktail can be conceived as a recipe for effectively distributing a certain product or brand, or it could be compared to the primary colors that an artist uses to make a painting. The point is that different combinations of this particular cocktail can be used to provide different results, or rather a different positioning for the brand. The cocktail that we are talking in this post which will definitely boost your marketing efforts is Marketing Mix. The marketing mix works like a recipe for developing a strong, cohesive marketing plan, and what’s usually referred to as the “Four P’s”, works like the ingredients to such recipe.

For example, while creating a marketing strategy for a new chocolate, one could decide to establish a higher price, which would likely translate in a higher status positioning, while providing for more opulent promotion mechanisms, as well. Conversely, one could opt for a lower price, which would translate in a broader positioning while allowing for less promotion. Usually, high profile brands choose to place the focus of their strategies on promotion, even when it means the price of the product will be weighed upon. Conversely, a product which is aimed at the masses should try to remain competitive in price, and usually cannot afford much glamorous advertising.

The Other Elements

Besides price and promotion, the other elements which normally come together in the marketing mix are the placement and the product itself. These are usually referred to as the “Four P’s” which is another popular term, when it comes to the study of marketing. Generally speaking, the “Four P’s” can be regarded as the ingredients that integrate the marketing mix, whereas the marketing mix can be regarded as a recipe for good marketing.

The Four P’s and The C’s

The “Four P’s”, are still regarded by many theorists as the main ingredients in the Marketing Mix. They are used to produce the marketing plan, and they are considered from the marketing management perspective. Subsequently, other authors have pointed out the importance of observing the customer’s perspective as well, in order to develop a consistent marketing plan. In that sense, we would consider “customer solution” along with “product”; “cost to the customer” along with “price”; “convenience” along with “place”, and “communication” along with promotion. These counterparts to the “Four P’s” are usually referred to as the “Four C’s”.

A Different Argument

In the past decades, the ingredients in the “marketing mix” have become more diverse, while reflecting the evolutions that have occurred within the markets, and the overall economy. Currently, different theorists claim that a good mix can take up to 8 “P´s”, or ingredients; several terms have been added up, such as “process”, “physical evidence”, “partners” and “packaging”.

In this post, however, the focus will be placed upon the original four “P’s”: “product”, “price”, “promotion”, and “place”.

The Ingredients

The four P’s represent variables over which the marketing manager has a certain degree of control over; even though they’re mostly subject to internal as well as external influences from the dynamic marketing environment. Since a good marketing strategy should strive to create perceived value in the customer, this should be the objective of the marketing mix, as well.

• The First ‘ P ‘ - Product : What is the “Product”? This term refers to decisions concerning the tangible properties of the product one aims to position within the market. It consists of properties such as the brand name, the product itself (along with its strengths and weaknesses), warranty, repairs and support; accessories and services. Naturally, the product is mostly a static variable, and the marketing manager is usually granted a limited freedom to make changes on the product, unless he’s trying to market a service.

• The Second ‘ P ‘ - Price : The “price” decisions deal with concepts such as the “pricing strategies, the suggested retail price, volume discounts and wholesale pricing, cash and early payment discounts, seasonal pricing, bundling, price flexibility, and price discrimination”. There are a number of decisions that should be considered by the marketing manager, where the price of a product is concerned. However, it should be understood that “price” and “product” are the variables that one has less control over, particularly on a short term. Conversely, the following variables are the ones that allow the marketing to develop more complex strategies.

• The Third ‘ P ‘ - Place : The “place” or “placement” variable, allow, by contrast a bigger range of decisions, where the distribution of the product is concerned. This ingredient is concerned mostly with getting the product to the costumer; it involves a wide range of decision making, such as the distribution channels, “market coverage (inclusive, selective or exclusive distribution), specific channel members, inventory management, warehousing, distribution centers, order processing, transportation, and reverse logistics”. Such decisions are most important, because they represent the target audience that one expects the product to be established upon. Also, there’s more room for creative thinking, where it concerns the issues governing the placement of the product; especially if one is to include the new on-line markets in his plan.

• The Fourth ‘ P ‘ - Promotion : The final ingredient in the classical marketing mix involves decisions concerning the “Promotion” of the product. This is the aspect which is mostly associated with the marketing function, and it involves everything which is associated to the marketing communication; the “communication of information about the product with the goal of generating a positive costumer response” (wiki). This implies several marketing decisions, such as the promotional strategy (push, pull); advertising, sales promotions, public relations and publicity, personal selling and sales force, and the marketing communications budget. This is arguably the area of decision where the marketing manager is able to impress the deepest influence, particularly on a short term. While the “Placement” deals with generally theoretical considerations regarding the optimum channels of distribution, the “Promotion” implies practical decisions concerning the process of making the customer want to get the product.

An Example

It’s always simpler to understand a theory once it’s been translated into practice. In that sense, a little research granted major insight into the marketing strategies supporting the success of one of the greatest multinational companies in the world: the long-time ruler of fast-food restaurants, McDonald’s. Whether or not we appreciate their offering, the worldwide success of this company is undeniable, and as much as the food may be tasty, the flavor is almost secondary to the implementation of certain marketing strategies, which have definitely been a major focus throughout its corporate history; herein we can find the true recipe for the success of McDonald’s.

The current motto behind marketing scheme is “Think global, act local,” and this sentence brilliant sums the brand’s strategy. One of the major goals the company has set out from the beginning was to provide a common denominator in flavor; every where in the world, a McDonald’s meal was intended to taste the same. However, experience has taught the company they should simultaneously try to adapt to each environment. Consequently, each franchise is painstakingly crafted to reflect the culture of the place it’s established upon, and even though there are generic products sold in every franchise (such as the popular “Big Mac”, there are always product offerings in the menus aimed for each culture: “Adaptation is required for many reasons including consumer tastes/preferences and laws/customs. There are many situations where McDonald’s adapted the product because of religious laws and customs in a country.”

McDonald’s has learned to simultaneously provide a standardized and custom product, and as a result it’s marketing success was enormous. The fast-food chain was established as a franchise system, and currently there are over 24,500 restaurants in 116 countries across the world. The company determines its prices after a rigorous study of each country it settles upon. The marketing position of Mc Donalds is always conceived with a global focus, while adapting to each particular culture, by using local celebrities and adopting cultural standards. Behind the key phrase “Think Global, act local”, there’s a model that can potentially work miracles for any international business.

So what do you think of this wonderful cocktail called the Marketing Mix? We would love to hear what you have to say when it comes to marketing mix.

[Img Credit: Cayusa]