Definition of 'Marketing Mix:

The marketing mix refers to the set of actions, or tactics, that a company uses to promote its
brand or product in the market. The 4Ps make up a typical marketing mix - Price, Product,
Promotion and Place. However, nowadays, the marketing mix increasingly includes several
other Ps like Packaging, Positioning, People and even Politics as vital mix elements.

Description: What are the 4Ps of marketing?

Price: refers to the value that is put for a product. It depends on costs of production, segment
targeted, ability of the market to pay, supply - demand and a host of other direct and indirect
factors. There can be several types of pricing strategies, each tied in with an overall
business plan. Pricing can also be used a demarcation, to differentiate and enhance the
image of a product.

Product: refers to the item actually being sold. The product must deliver a minimum level of
performance; otherwise even the best work on the other elements of the marketing mix won't
do any good.

Place: refers to the point of sale. In every industry, catching the eye of the consumer and
making it easy for her to buy it is the main aim of a good distribution or 'place' strategy.
Retailers pay a premium for the right location. In fact, the mantra of a successful retail
business is 'location, location, location'.

Promotion: this refers to all the activities undertaken to make the product or service known to
the user and trade. This can include advertising, word of mouth, press reports, incentives,
commissions and awards to the trade. It can also include consumer schemes, direct
marketing, contests and prizes.

What is the importance of the marketing mix?

All the elements of the marketing mix influence each other. They make up the business plan
for a company and handled right, can give it great success. But handled wrong and the
business could take years to recover. The marketing mix needs a lot of understanding,
market research and consultation with several people, from users to trade to manufacturing
and several others.

2.CREATING CUSTOMER VALUE:

Step 1: Understand what drives value for your customers

Talk to them, survey them, and watch their actions and reactions. In short,
capture data to understand what is important to your customers and what
opportunities you have to help them.

Step 2: Understand your value proposition

The value customers receive is equal to the benefits of a product or service

minus its costs. What value does your product or service create for them?
What does it cost them–in terms of price plus any ancillary costs of
ownership or usage (e.g., how much of their time do they have to devote to
buying or using your product or service?)

Step 3: Identify the customers and segments where are you can
create more value relative to competitors

Different customers will have varying perceptions of your value relative to

your competitors, based on geographic proximity, for example, or a product
attribute that one segment may find particularly attractive.

Step 4: Create a win-win price

Set a price that makes it clear that customers are receiving value but also
maximizes your “take.” Satisfied customers that perceive a lot of value in
your offering are usually willing to pay more, while unsatisfied customers
will leave, even at a low price. Using “cost-plus” pricing (i.e., pricing at
some fixed multiple of product costs) often results in giving away margin
unnecessarily to some customers while losing incremental profits from
others.

Step 5: Focus investments on your most valuable customers

Disproportionately allocate your sales force, marketing dollars, and R&D

investments toward the customers and segments that you can best serve
and will provide the greatest value in return. Also, allocate your growth
capital toward new products and solutions that serve your best customers
or can attract more customers that are similar to your best customers.

Your customers are the lifeblood of your business. They are the source of
current profits and the foundation of future growth. These steps will help
you find more ways to grow your business by better serving your best
customers.

Customer Loyalty vs Customer Satisfaction

Customer loyalty vs customer satisfaction are pretty simple to tell apart once you understand the
definition for each.

Customer loyalty – What is it?

Customer loyalty is a customer’s general preference for continually doing business with a
specific business establishment. Customer loyalty refers to the relationship or connection
between a (usually) satisfied customer and the establishment they prefer to patronize. Customer
loyalty can come in many forms, and surprisingly, a customer need not visit a business frequently
to be considered loyal. A woman who visits the same hair salon every time she’s back in her
hometown can be a loyal customer, even if it’s just once annually.
Customer loyalty usually turns customers into “brand ambassadors.” Customers enjoy a
company’s service or product so much that they’ll go out of their way to promote and recommend
it to others, pay a premium price, or find that specific brand.

Customer satisfaction – What is it?

Customer satisfaction, on the other hand, simply refers to a buyer’s level of satisfaction with
their most recent purchase or interaction with your business. A satisfied customer can be thrilled
with the service they received and still visit a competitor’s store a week later. Being satisfied does
not create loyalty.
Customer satisfaction is, however, a necessary step in building customer loyalty. A customer
hardly has reason to become loyal to a business if they aren’t consistently satisfied with the
service or products. So in order for a customer to become loyal, they must first be satisfied with
the level of service and quality of product they’re receiving.

Are loyal customers always satisfied?

One reason the customer loyalty vs customer satisfaction distinction is difficult to make is due to
the nature of customer loyalty itself. A customer’s loyalty does not necessarily indicate what their
level of satisfaction is. Some loyal customers would find it a hassle to move to a competitor;
some don’t want to abandon low pricing; others simply stick it out with a company after negative
changes are made because they feel an obligation to the company after years of patronage.

Satisfied customers are not always loyal. Loyal customers are not always satisfied, but as a
general rule, loyal customers are quite satisfied with the businesses they frequent and make a
point to support.

Telling the difference between customer loyalty vs

customer satisfaction
Customer loyalty can be seen in purchase frequency, the length of time between purchases,
website purchase analytics, feedback and reviews, communication with customers, and more.
You’ll know who your loyal customers are because they’ll keep coming back, even if it’s not very
frequently (depending on your industry).

Customer satisfaction can be measured with feedback, surveys, product return information,
reviews, and website purchase analytics. If you have high customer satisfaction, you’ll see
positive reviews, low numbers of returns, and plenty of purchases on your website by new
visitors. What you won’t see, however, is the return of these customers to purchase from you
again and again.