Marketing Strategy Mix – Every brand or business wants to be the market leader. For that you need to attract a lot of customers. To achieve this, you need to have a marketing strategy that is second to none. The marketing mix model helps marketers plan a comprehensive product or service that hits all the right points in the target audience.
The marketing mix refers to the strategies or plans that a company develops to increase awareness of its products or services. These are also known as the 4Ps of Marketing – Product, Price, Place and Promotion because the marketing mix strategy is a combination of these four elements. In the case of services, the marketing mix becomes the 7Ps of marketing, and the other three Ps include physical evidence, people, and process.
Marketing Strategy Mix
Knowing these P’s is essential for every marketer to develop a successful marketing strategy. Let’s examine each in detail:
Elements Of Marketing Mix
1) Product: The product sold is the most important element in the marketing mix. What is the functional value of the product? What customer needs and desires are met? What is its Unique Selling Proposition (USP)? Without a good knowledge of this, the other Ps in the mix cannot contribute to the marketing strategy. All product features are under this element:
2) Price: refers to the value you offer for your product. Formulating the right pricing strategy depends on several factors including production costs, competitors’ pricing strategies, target market’s ability to pay, offerings, brand personality, etc. It covers the following aspects:
#1- Pricing Skimming: If you are the first to market your product, you can set a high price initially and then lower it as more competitors join the market. This is a short-term strategy because eventually competitors will enter your market with similar products. This strategy caters to a group of buyers known as “early adopters” and “innovators” who are quick to purchase new products on the market without worrying about cost.
#2- Penetration pricing: This strategy is the opposite of skimming pricing. Here you enter the market with a lower product price and increase the price after stabilizing the market share. This strategy is usually followed in price sensitive markets and is done to attract competing customers and switch them to your product. While this strategy is less profitable than short-term pricing, it can be profitable in the long run because you’ve built up a large market share that you can maintain for repeat sales. “Special offers for new customers” “first time purchase offers” are examples of this strategy.
Marketing Strategy By Ivan Cavric
#3- Loss Leader: Using this strategy, the business decides to offer a lower priced product at a lower price and incurs a loss as a result. The reason for this is to attract customers to your store and encourage them to buy other profitable items. This is a sales promotion technique to increase sales.
#4- Psychological Pricing: A very common strategy used by marketing teams. Pricing is considered lower than it is. For example, this product will ship for $9.99 instead of $10. Customers are tricked into considering such a low price, even if it is $10. Customers can see this but still fall in love!
5- Competitive Pricing – When there are several businesses offering the same product at the same price, it becomes the “leading rate” for that product and your business has no choice but to charge that price. It does not have for its product. Then you need to create a competitive advantage using the other P’s in the marketing mix.
3) Location: refers to the dynamics of location. The advent of the Internet has added a new dimension to the location parameter. A product no longer needs to think close to the target consumer to achieve a wider reach. However, for many products, the right location and the right placement of the product are still key winning factors. The retail sector places great importance on placing products closer to eye level and closer to entry points to increase the likelihood of more purchases. The marketing team ensured that POP (point of purchase) materials and display ads were placed in strategic locations to target more customers and increase their market share. The elements of place are:
Marketing Strategy And Product
4) Advertising: refers to all advertising activities that are done to make people aware of the product. Advertising, public relations, word of mouth, personal selling and other forms of communication fall under this element. In summary:
Promotional activities can be divided into above-the-line (ATL) promotion and below-the-line (BTL) promotion. ATL involves the use of mass media such as print ads, television ads, and radio ads to increase awareness of a product among a mass audience. Below-the-line advertising is the use of non-mass media to target specific customers. This includes product displays in shopping malls or other public places, road shows, distribution of pamphlets and brochures, and other non-conventional advertising methods.
In addition to the 4 P’s of the product marketing mix, the service marketing mix has three additional P’s namely people, process and physical evidence.
5) People – Internal and external audiences are influenced by people. Knowing the company’s employees and customers can be useful for the marketing team in creating better strategies. Marketers need to know about the preferences of the target audience of the business. This helps them shape their message accordingly.
Why Use Direct Mail?
The people who work in your organization are the people who serve your customers. Their training, motivation and communication skills must be top notch so that your service is the best in the market. Customer support should be available to help customers around the clock. Live chat and social media support should also be available. The behavior of salespeople and customer support teams towards customers can be a powerful factor in the success of your service.
6) Process – Process includes the systems and mechanisms by which services are implemented and delivered to end customers. Fast and efficient delivery can be the USP of a service. The company is constantly expanding its delivery network to help deliver its services faster. If the company is able to achieve this, marketing teams can take advantage of process strategies by attracting customers with same-day delivery offers.
7) Physical Evidence – Intangible services can be augmented by tangible services. First and foremost, the physical environment in which the service is provided plays a large role in influencing the customer’s perception of the service. For example, the space and furniture used in a cafe make the service modern, classic or boring. The sounds, colors, smells of a place evoke emotions associated with the brand. Signs, symbols, brochures, staff uniforms, logos, etc. Brand engagement and marketing teams use all this physical evidence to improve the brand experience and attract more customers.
An extension of the marketing mix model was proposed by Robert F. Lauterborn. Since the customer is king in business, the 4 P’s are replaced by the 4 C’s which are:
Marketing Strategy: Templates, Definitions, Importance, & Benefits
Marketers should learn all these marketing strategies during their course. As simple as they are, they are the foundation of a successful marketing strategy and should be kept in mind by every marketing team.
“Marketing is no longer about the goods you produce, it’s about the stories you tell.” Seth Godin’s marketing mix refers to the set of actions or tactics that a company uses to promote its brand or products in the market. The 4Ps make up a distinct marketing mix – price, product, promotion and place. Today, however, the marketing mix increasingly includes several other Ps such as packaging, positioning, people, and even politics as critical mix elements.
It refers to the value assigned to a product. It depends on production costs, target segments, market ability to pay, supply and demand and a number of other direct and indirect factors. There are different types of pricing strategies, each related to the overall business plan. Pricing can also be used as a demarcation, to differentiate and enhance the image of a product.
This refers to the goods that are actually sold. The product must provide a minimum level of performance. Otherwise, even the best work on other elements of the marketing mix will be useless.
Solution: Lecture 3 Digital Marketing Strategy And Marketing Mix 1 2
This refers to the point of sale. In any industry, attracting the attention of consumers and making it easy to buy are the main goals of a good distribution strategy or “place”. Retailers pay a premium for the right location. In fact, the motto of a successful retail business is “location, location, location.”
It refers to all the activities that are done to make a product or service known to users and businesses. This can include advertising, word of mouth, press releases, incentives, commissions and rewards for transactions. It can also include consumer initiatives, direct marketing, contests and giveaways.
All elements of the marketing mix
