The Four “P’s” of the Marketing Mix
The marketing mix is the combination of the four controllable variables–product, place, promotion, and price (the four Ps)–people are sometimes added (but that’s within HR). Chanimals blend these variables to create a mix that satisfies the needs of the target market.
- Product. The product refers to the service or tangible good that satisfies the target customer’s wants–it is obviously first essential that a real target market is identified, quantified and justified.
- Place. The place refers to placement (usually managed by sales or OEM), such as having the product available where and when targeted customers want to buy it.
- Promotions. Promotion includes Advertising, PR, Event Marketing, Online Marketing, Direct Marketing, Personal Selling, Channel Marketing, and Alliances.
- Price. Price consists of the policies regarding competitive upgrades, reseller pricing, discounts, list price, distributor and street price (the actual selling price).
To ensure that the marketing mix is managed, it is essential to develop a marketing strategy (a broad plan for using an organization’s resources to meet its marketing objectives) which is formalized in a Marketing Plan. The Marketing Plan covers the controllables (the 4 Ps) while also suggesting contingencies for the uncontrollables such as social-cultural, ethical, technological, competitive, political-legal, and economic variables.
The Marketing Plan
In addition to the four Ps and contingencies for the uncontrollables, The Marketing Plan lays out both the strategic and tactical plans along with a detailed budget. Examples of Marketing Plans can be found within the Plans & Finance section. You will notice that, although all areas of the marketing mix are covered, some portions are more detailed, while others are meager. This is because each plan is, and should be, tailored to the particular needs of the specific organization at the time.