Marketing mix is a mix of mixes

A mixture of several ideas and plans followed by a marketing representative to promote a particular product or brand is called marketing mix. The elements of marketing mix are often called the four Ps of marketing ( for products) and additional 3 Ps for services.

For Goods or Products

Product Mix
Place Mix
Price Mix
Promotion Mix

For Services
People
Process
Physical Evidence

PRODUCT MIX
Product mix, also known as product assortment, is the total number of product lines that a company offers to its customers. The product lines may range from one to many, and the company may have many products under the same product line as well . This will be explained in detail later when the topic product is covered.

In any multi brand organizations, there are numerous products present. None of the organizations wants to take the risk of being present in the market with a single product.

If a company has only a single product, than it is understood that the demand of the product is very high or the company does not have the resources to expand the number of products it has. Generally, most companies nowadays realise the importance of product diversification.

A company like HUL has numerous product lines like Shampoos, detergents, Soaps etc. The combination of all these product lines is the product mix.

Product mix concerns with following decisions:

1. Development and introduction of new product

2. Matching the products with needs and wants of target consumers

3. Modifications (in term of qualities, features, and performance) on existing products

4. Product-related strategies including branding, packaging, labeling, colour, weight, grading, etc.

5. Product line decisions including different varieties or models, and product mix decisions including width, depth, length, and consistency

6. Product-related services like after-sales services, home delivery, guarantee, warrantee, and demonstration

7. Study of competitive (or comparative) advantages of products

8. Product life cycle, relevant strategies for each of the stages of product life cycle, and consumer adoption process

Price mix is another important element of marketing mix. It is considered as very critical element. Price can be defined as the economic value of product normally expressed in form of money.

The price of product should be set in such a way that buyers can pay and company can earn adequate profits. In case of price-sensitive customers on one hand and the prestige-sensitive customers on the other hand, the pricing decisions become vital in marketing.

Normally, pricing decisions involves:

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1. Determining product development costs

2. Determining manufacturing (variable and fixed) costs the product

3. Studying pricing policies and strategies of the close competitors

4. Formulating appropriate pricing policies for the products

5. Deciding on level or margin of profits

6. Deciding on variable v/s fixed pricing, price discrimination, discounts, allowances, and seasonal effect

7. Identifying and analyzing of various relevant factors influencing pricing decisions

8. Pricing policies/strategies in different stages of product life cycle

9. Deciding on price-setting methods

10. Pricing decisions for direct and indirect distribution of products

3. Promotion Mix:

Promotion mix deals with those activities directed to increase sales volume. It is also known as market communication. In today’s marketing practices, market promotion has much vital role. Promotion mix involves all those efforts directed to increases sales of products on a continuous basis.

It includes providing information to customers, inspiring them to buy, and offering incentives. Note that market promotion is concerned not only with raising sales volume, but it is also a tool for establishing long-term relations with the parties involved and is a matter of image, reputation, and goodwill for the company.

Promotion mix consists of following elements or tools:

Advertising:

Advertising is a popular and powerful tool of market promotion. It is a paid form of non-personal presentation and promotion of ideas, goods, and services by identified sponsor. It is a tool for mass communication.

It includes following aspects:

i. Setting advertising objectives.

ii. Deciding on advertising message, copy, media, schedule, agency, and budget

iii. Evaluating social aspects and advertising effectiveness

iv. Coordinating advertising efforts with other tools of market promotion

Personal Selling:

It is also known as salesmanship and management relating to personal selling is sales force management.

Personal selling decisions consist of followings:

i. Setting personal selling objectives

ii. Deciding on sale force size

iii. Recruitment, selection, training, transfer, and promotion of salesmen

iv. Remunerating and motivating, and controlling salesmen

v. Associating personal selling efforts with other market promotional tools

Sales Promotion:

Sales promotion involves offering short-term incentives to prompt buying and increase sales. It includes temporary efforts to attract customers and induce them to buy. Most popular forms of sales promotion are free gifts, discounts, exchange offer, free home delivery, after-sales services, guarantee, warrantee, various purchase schemes, etc.

Sales promotion covers following decisions:

i. Sales promotion objectives

ii. Sales promotion methods – consumer level, salesmen level, and dealer level

iii. Timing of sales promotion

iv. Assessing costs and effectiveness of sales promotion

v. Associating sales promotion efforts with other elements of market promotion

Publicity:

It is a non-person stimulation of demand for the product, service, or business unit by placing commercially significant news in mass media or getting a favourable presentation on radio, television, or stage that is not paid by the sponsor. It is also a part of public relations.

It includes:

i. Deciding on objectives of publicity

ii. Deciding on indirect expenses of publicity

iii. Determing types of efforts to get publicity

iv. Assessing impact of publicity on sales and reputation of company

v. Coordinating publicity with other promotional tools

4. Place Mix:

Place mix is related to distribution of product. This element of marketing mix basically concerns with physical distribution and channel of distribution. This is the last element of marketing mix but very important as marketing goals can be achieved only if the products reach the hand of consumers conveniently.

This element concerns with making the products available to the customers effectively. That means, the right products can be made available to the right consumers, in the right way, at the right time and at the right place, and in the right form.

Place decisions involve:

i. Studying geographical concentration of customers

ii. Studying types of distribution channels and channel members

iii. Analyzing various relevant factors affecting channel decisions

iv. Selecting suitable channel of distribution.

v. Strategic decisions related to distribution activities

vi. Physical distribution including transportation, communication, warehousing, inventory control, insurance, banking, etc.

vii. Balancing distribution costs and selling price

viii. Designing a suitable distribution network, and long-term distribution strategies

ix. Developing and adopting logistics management for effective distribution of products