Reviewed by Jan 29, 2021| Updated on
Recently, the marketing mix further includes other Ps such as Positioning, People, Packaging, and Politics as essential mix elements.
1. Price: Price is the monetary value for a product which depends upon production costs, segment targeted, the ability of the market to pay, supply-demand, and a set of other direct and indirect factors. There are several types of pricing strategies, each associated with an overall business plan. Pricing can also be used as a limit to distinguish and enhance the product's image.
2. Product: Product is the actual item for sale. The product must achieve a minimum level of performance; otherwise, even the substantial efforts on the other elements of the marketing mix will not work.
3. Place: The place is nothing but the point of sale. In every industry, attracting consumers and easing the buying process is the primary purpose of a good distribution or 'place' strategy. Retailers shell out a premium for the right location.
4. Promotion: Promotion refers to all the activities carried out to make the service or product visible and known to the user and trade. It can include advertising, press reports, word of mouth, incentives, awards, and commissions to the trade. It further includes direct marketing, consumer schemes, contests, and prizes.
All elements of the marketing mix are interdependent to influence each other. They help in building a business plan for the company and if handled rightly, can give great success. However, it could take many years for the business to recover if mishandled. The marketing mix requires a lot of understanding, market research and interview with several people, ranging from users to retail to manufacturing and several others.
Taking the example of Coca Cola in India, the brand has retained the demand graph at the peak by keeping its target audiences secured by its marketing mix.
Its product mix continues to evolve, but the Coca Cola offers the same dark concoction since it began operations in 1892. It is because the marketing mix blends with the specific culture and socio-economic demographics of every country it markets in.
Another example is Amul India. Since 1946, the company has built a network of people across generations, keeping the same primary product.