A marketing mix is a special set of tools that allows a marketer to achieve the main goal: to satisfy the needs of customers and increase sales. With the help of these tools, demand is formed and consumer behavior is controlled .
The concept and goals of marketing
The concept of marketing appears in the second half of the 19th century, when, in response to overproduction, it became necessary to find new tools to boost sales. A new concept was defined as a specific activity aimed at increasing the company's profits. Today there are at least a thousand different definitions. In general, marketing is understood as a process aimed at studying the market and forming a circle of consumers of goods.
The main goal of marketing is to satisfy the needs of consumers. To do this, study the market, design a product, determine its price and plan promotion. Marketing seeks to establish effective communication between the manufacturer and the buyer of the product in order to maximize consumption. In addition, he faces the goals of a thorough study of the market situation and the study of consumer needs and the characteristics of his behavior. It aims to increase customer satisfaction with the product in order to lead him to re-purchase. Improving the quality of life of consumers, expanding the product mix for the fullest satisfaction of the needs of the population is also an area of marketing functioning. Based on these goals, marketing functions are determined: sales, analytic, product-production, communication, management and control.
Theory of Marketing Mix
In 1953, the term “marketing mix” was first used in American marketing, by which Neil Borden understood a special set of tools to achieve the desired marketing results. Later, McCarthy clarified this concept and developed the concept of 4p marketing, which has become synonymous with the concept of “marketing mix”. It included elements such as product, price, place, promotion. He found that the four basic elements, without which it is impossible to organize the marketing activities of an enterprise, exist in any form of production and are universal.
In general, a marketing mix is a set of measures and tools that allow a company to influence the demand for manufactured goods and services.
The first element of a marketing mix is a product (or product). This is the starting point of marketing activity, and it means a certain item or service that has a certain value for the consumer. At the design stage, it is necessary to lay in the goods those qualities and properties that will be in demand by the consumer. For the successful implementation of the product, the marketer needs to have a good idea of what need he is able to satisfy, what are the advantages and weaknesses of the product. It should also be imagined which product improvements can increase its sales, in which markets it can be in demand. To increase sales, you need to take care of the packaging of the product, its attractiveness and information content, the registration of the trademark for quick identification of the product by the consumer. To create customer loyalty to the product, it would be nice to provide guarantees and additional services for the client.
The marketing mix mix includes pricing. This is a very important action on which the success or failure of a product in the market depends. The price should not be too low or unreasonably high, as it can scare away the buyer. Despite the apparent ease of maximizing profits due to the high price, you should very carefully set the high or low cost, since it is a powerful factor in the image of the product and manufacturer. Price must necessarily be competitive, adequate to the purchasing power of consumers and the chosen strategy. Price can be an instrument of promotion in strategies such as market penetration or skimming. When designing the cost of a product, several options should be provided for various sales channels, and the possibility of providing discounts.
Place of sale
The choice of the place of distribution of goods is an important element of the marketing mix mix. This choice is based on a thorough analysis of consumer behavior. It is necessary during the study to identify places where it will be most convenient for the consumer to make a purchase. Organization of sales, like other methods of sales promotion, should push a person to purchase. The procedure for acquiring a product should be extremely simplified and quick, the consumer should not spend a lot of effort on making a purchase. When developing a marketing strategy, markets for distribution and distribution channels should be defined. Also an important part of the sales organization is the merchandising system (advertising at the point of sale, including the display of goods, atmosphere and navigation in the store).
A marketing mix is what is most often associated with promotion. Indeed, promotion is an essential component of the marketing mix. It is customary to distinguish four groups of tools in its structure: advertising, methods of sales promotion, PR, direct sales. These funds are used in combination, solving long-term and short-term tasks. Advertising and sales promotion usually give quick results, PR is a low-intensity technology and creates a delayed effect. A set of promotion tools is implemented as a media strategy of the company. For B2B and B2C markets, different tools are used.
A marketing mix is a plan of action; operations cannot be swapped or released as unnecessary. Each element of the complex requires coordinated and thoughtful marketing actions. The main marketing tools are the sales, pricing, product and communication policies of the enterprise. In addition to the marketing mix, there is the concept of a media mix - a set of means of promoting a product in the information environment. It includes direct advertising in the media (radio, television, etc.), event marketing, various promotions, advertising on the Internet.