Marketing Mix – What is it and what is the importance of marketing mix in practice
Today it’s all about the four pillars of marketing. In practice, this is called a marketing mix and consists of product policy, pricing policy, distribution policy and communication policy. All four instruments together make up the marketing mix that has been around since the 1960s. How this is implemented in today’s practice and what is the importance of marketing mix, I would like to describe today.
The marketing mix = product + price + sales + communication
The foundation of a successful business is a viable marketing concept. The marketing mix forms the four pillars with the areas “Product – Price – Place – Promotion” (from the English the 4 P). You could also say that if one of these areas is missing, the scaffolding collapses. In real business life you do not get up – or only conditionally.
The product – product policy
That forms the basis of a company. Product policy includes all decisions about the product or service. This area also includes quality and planning for the product as well as the packaging.
The price – price policy
This includes terms such as pricing and price level. But also additional information such as discounts, bonuses, loans and payment terms.
The Communication – Promotion
That seems to be the most important point. It’s about goals and decisions on how to achieve that goal. That is, in this point, the advertising, sales promotion, sponsors, fairs and exhibitions, public relations and, above all, corporate identity (the identity of a company is the totality). Besides these points, it is also about the communication of the customers.
Sales (distribution policy)
It decides all decisions related to shipping. So the way from your shop to the (end) customer. Often several ways are used: online and offline – over the Internet and a store (or on the doorstep of the customer, …).
In English, there are even more P-names (not exhaustive):
- Processes – control of business processes.
- Packaging – Everything related to packaging and its design.
- Personnel, People or Persons – called in German personnel policy.
- Physical Evidence – for example, shop design or corporate design.
- Public Voice – distribution in blogs and communities.
- Product Positioning – Where is the product, the service in competition?
- Pamper – the feel-good experience of (existing) customers. Relationship with the customer.
Learn more about what is marketing mix and the 4 P’s of marketing
Examples of importance of marketing mix
- A novel smartphone, which is sold at a high price through a provider and advertised through extensive public relations, TV advertising, and websites.
- … the “product” is the smartphone, the indication “high price” the price policy, the provider of the “distribution” and the types of advertising the “communication, or promotion”.
Only when all points are considered evenly, the whole company becomes strong and known – or successful. Often depends on the budget, if really good products because of insufficient advertising (communication) will not be as successful as expected.
Read more about the core concepts of marketing and the role they play in building a strategic marketing plan