Marketing Mix – 4P`s – Elements, Factors

The term marketing mix was first coined by James Culliton and was described as 4P`s by Professor Jerome McCarthy. Since then the terms ‘marketing mix’ and ‘4P`s’ have been used synonymously.

Marketing Mix refers to the set of controllable factors that a firm can use to influence the buyer’s response within a given marketing environment. It is used to describe the combination of four inputs (product, price, place, promotion) which constitute the core of a company’s marketing system.

Marketing Mix is the combination of different marketing decision variables used by a firm to market its goods and services. These four marketing mix elements form the core of all marketing efforts.

Elements of Marketing Mix

Product – A product is anything that satisfies a consumer need. It may be a good, service, event, experience etc. The first step in marketing is to identify and develop a product that consumers`s demand. It involves decisions regarding:

• Physical Product
• Product mix
• Product variables
• Product Quality
• Branding
• Packaging etc.

Price – Price is the amount of money that a buyer has to pay in order to own a product. A marketer makes price alterations in order to attract the customers through discounts, allowances, coupons etc. The element of price is concerned with determining:

• Level of prices (low, high)
• Range of prices
• Price–Quality relationship
• Competitors pricing
• Government control over prices
• Psychological effect of pricing

Place – It is concerned with the delivery of a product from the place of production to the final consumer. A producer may sell a product directly or through intermediaries. It involves decisions regarding:

• Channel levels – Manufacturer to Wholesaler to Retailer to Consumer and creation of:
  • Time utility – Product must be available when needed
  • Place utility – Locate products where they can be easily acquired.
  • Possession – Minimize the number of obstacles between the manufacturer and consumer.
• Inventory management and control
• Physical distribution of goods
• Order processing and Transportation

Promotion – Promotion refers to communication of information about a product and its features to potential customers through various forms of media.  It is the process of educating customers through various forms of media about

• Product Quality
• Product Utility
• Product Price

It involves selection of a combination of tools of promotion like advertising, sales promotion, personal selling, publicity and public relations to persuade potential customers to buy a product or service.

Factors affecting Marketing Mix

Market related factors –

• Distribution system
• Consumer behaviour
• Government policies
• Nature of competition

Product related factors –

• Marketing research
• Product planning
• Sales promotion
• Branding
• Channel of distribution
• Advertising
• Personal selling