BUSINESS

MARKETING ESSENTIALS

Marketing Mix
By
WILL KENTON
|
Reviewed by
MARGARET JAMES
|
Updated Dec 27, 2020

What Is a Marketing Mix?

A marketing mix includes multiple areas of focus as part of a comprehensive marketing plan.
The term often refers to a common classification that began as the four Ps: product, price,
placement, and promotion.

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Effective marketing touches on a broad range of areas as opposed to fixating on one message.
Doing so helps reach a wider audience, and by keeping the four Ps in mind, marketing
professionals are better able to maintain focus on the things that really matter. Focusing on a
marketing mix helps organizations make strategic decisions when launching new products or
revising existing products.

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KEY TAKEAWAYS
A marketing mix often refers to E. Jerome McCarthy's four Ps: product, price,
placement, and promotion.
The different elements of a marketing mix work in conjunction with one another.
 g j

Consumer-centric marketing mixes incorporate a focus on customers into their

approaches.

Understanding Marketing Mix

The four Ps classification for developing an effective marketing strategy was first introduced in
1960 by marketing professor and author E. Jerome McCarthy. [1] Depending on the industry and
the target of the marketing plan, marketing managers may take various approaches to each of
the four Ps. Each element can be examined independently, but in practice, they often are
dependent on one another. 

Product
This represents an item or service designed to satisfy customer needs and wants. To effectively
market a product or service, it's important to identify what differentiates it from competing
products or services. It's also important to determine if other products or services can be
marketed in conjunction with it.

Price
The sale price of the product reflects what consumers are willing to pay for it. Marketing
professionals need to consider costs related to research and development, manufacturing,
marketing, and distribution—otherwise known as cost-based pricing. Pricing based primarily on
consumers' perceived quality or value is known as value-based pricing.
Placement

The type of product sold is important to consider when determining areas of distribution. Basic
consumer products, such as paper goods, often are readily available in many stores. Premium
consumer products, however, typically are available only in select stores. Another consideration
is whether to place a product in a physical store, online, or both.

Promotion
Joint marketing campaigns also are called a promotional mix. Activities might include
advertising, sales promotion, personal selling, and public relations. A key consideration should
be for the budget assigned to the marketing mix. Marketing professionals carefully construct a
message that often incorporates details from the other three Ps when trying to reach their
target audience. Determination of the best mediums to communicate the message and
decisions about the frequency of the communication also are important.

Important: Value-based pricing plays a key role in products that are considered to be
status symbols.

Special Considerations
Not all marketing is product-focused. Customer service businesses are fundamentally different
than those based primarily on physical products, so they often will take a consumer-centric
approach that incorporates additional elements to address their unique needs.

Three additional Ps tied to this type of marketing mix might include people, process, and
physical evidence. People refer to employees who represent a company as they interact with
clients or customers. Process represents the method or flow of providing service to the clients
and often incorporates monitoring service performance for customer satisfaction. Physical
evidence relates to an area or space where company representatives and customers interact.
Considerations include furniture, signage, and layout.

Additionally, marketers often study consumers who frequently will influence strategies related
to service or products. This also requires a strategy for communicating with consumers in terms
of obtaining feedback and defining the type of feedback being sought.

Traditionally, marketing commences with identifying consumers' needs and ceases with the
delivery and promotion of a final product or service. Consumer-centric marketing is more
cyclical. Reassessing the customers' needs, communicating frequently, and developing
strategies to build customer loyalty are the goals
strategies to build customer loyalty are the goals.

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Related Terms
The 4 Ps of Marketing
The 4 Ps of marketing are the key categories involved in the marketing of a good or service. The 4 Ps
refers to product, price, place, and promotion.
more

Marketing Strategy
A marketing strategy is a business's general scheme for developing a customer base for the product or
service the business provides.
more

T t M k t Wh t E Sh ld K
Target Markets: What Everyone Should Know

A target market refers to a group of potential customers to whom a company wants to sell its products
and services.
more

Everything Marketing Entails

Marketing refers to the activities of a company associated with buying, advertising, distributing, or selling
a product or service.
more

Understanding Product Differentiation

Product differentiation is the process of identifying and communicating the unique qualities of a brand
compared to its competitors.
more

How Marketing Plans Work

A marketing plan is an operational document that demonstrates how an organization is planning to use
advertising and outreach to target a specific market.
more

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