When we have already launched our company on the market and we have made a business plan, we have to ask ourselves about the marketing techniques or strategies. Still don’t know what the Marketing Mix is and what are its variables? Learn to get favorable results in the short term. Do not miss it!
It may interest you: Master in Marketing Management, Sales and Digital Strategy
Index of contents
What is the digital marketing
What is the Marketing Mix?
Every consumer knows the product, where they buy it, why they have chosen it and the price it has. Taking into account all these points in which the consumer makes decisions, and anticipating this, is the central axis of the Marketing Mix or commercial mix.
Therefore, the Marketing Mix or marketing mix consists of the set of activities aimed at promoting and marketing the brand or product in the market . Always taking into account the 4P’s and with a clear objective: to attract and retain the customer thanks to the satisfaction of their needs.
Philip Kotler, a global marketing expert, defines it very well in his book: Marketing 4.0. Transform your strategy to attract the digital consumer (LID Editorial): ” The ‘Marketing Mix’ is a classic tool to help plan what to offer consumers and how to offer it to them “.
Once we have a clear concept, what are those internal variables or the well-known 4P’s that we have talked about? The product, price, place or place and promotion. The Marketing Mix strategy will be aimed at adapting these four variables to the market. A very clear example is when a company wants to make the leap to digital. As is logical, it must adapt the variables to the digital context after seeing how the market and the consumer behave in this medium.
The 4Ps of marketing analyze the strategy of companies internally since the 1960s. They serve to organize and detail the actions related to making goods and services available to the target audience. For this, it is important to take into account the behavior of the market and our potential client. The objective is to achieve the maximum retention and loyalty of customers, satisfying their needs to the maximum.
After this example, the answer to what Marketing Mix is is clear: something as simple and complicated as managing to place the right product, in the right place, at the right time and at the right price.
What are the 4P’s of Marketing-Mix?
The price of the product or service continues to be a fundamental factor for the vast majority of customers. When we are unable to differentiate ourselves from our competition, price always becomes the deciding factor.
We must establish a price for the product, large enough to generate income to cover expenses and also generate a profit. It is also important to take into account the maximum price that the customer is willing to pay. A deep knowledge of the market will give us many more clues than a study of the internal costs of the company.
This variable is relevant for the consumer and competitive for the market.
The product is one of the most important variables since it is the good or service that satisfies a need. This will result in a positive or negative user experience. The chosen product must be sufficiently novel and simple to outperform the competition and, also, to be understood by any user.
It consists of all the efforts that the company carries out so that this product achieves greater success and notoriety. The promotion is to present the product to future customers.
The promotion variable focuses on the efforts to disseminate our product or service, mainly through advertising. This is where metrics such as ROI or ROAS come in , trying to measure the profitability of projects or advertising. There is no point in investing in promotion if this way we do not generate more income than the expenses of the promotion itself .
Square or place
In many cases, distribution channels are the forgotten ones of marketing and it should not be that way, because logistics is essential for a business to be successful with its products.
In the process of distribution of the product it is included from the stock, through the points of sale, the intermediaries, the distributors, among others. It is important to take into account the number of products that are in stock. Poor inventory management can mean the loss of many sales.
Guide on how to make a Digital Marketing Plan
Evolution of the 4P’s in the Marketing-Mix
The Marketing Mix was born within the traditional marketing around the 50-60 years. Along with him, Jerome McArthy was the one who promoted the use of the 4P’s. Do you think that today and after what the market has changed, we can continue using them? Of course yes, these 4P’s are in the market because they are the market, but the evolution of the environment has made them adapt or increase.
From the 4P’s to the 4C’s of marketing
In the late 1990s a new theory was proposed. 30 years after the 4P’s, it was necessary to put aside the product a bit to focus on the customer and, therefore, on the 4C’s (Anglo-Saxon term): customer, cost, convenience and communication . Without a doubt, the digital age has been decisive in this change. So much so that the 4C’s are the key, for example, within social networks.
- The customer perspective changes radically. The customer goes from being a consumer to being a person. The focus, previously focused on the product, changes to make the customer the protagonist in every way. For what he becomes a prosumer, companies create the products he asks for.
- The price changes by cost, because a product no longer only costs money, it is time and effort. That is, a store may offer a low price for its product, but if it is very far from your home, you would probably prefer to buy in a nearby store at a slightly higher price. Therefore, the company must study these two factors that are more decisive than the price.
- Related to the client’s time we have the change of place for that of convenience. The company takes on the responsibility of establishing an efficient distribution that is affordable for the customer. It’s about making your life easier.
- The advertising standard no longer works. Customers communicate differently and so should the company. Promotion gives way to communication. For this, the ideal is to establish direct, interactive and relational communication. Not only are products informed, but an experience is created around them.
For Kotler, applying the 4C’s guarantees that “companies have a good chance of surviving in the digital economy . “
From 4P’s to 7P’s in the marketing mix
As we have seen, the Marketing Mix takes into account the product, the price, the place and the promotion. These four elements in the services sector become 7 since, having a service as a product, new approaches arise when carrying out any strategy.
That is why the 4P’s are adapted and three more variables are added: personal, palpability (physical evidence) and processes.
- The staff who offer the service is part of the customer’s shopping experience, which has a direct impact on the quality of the service. The success of the company in this aspect will be to form a good team that is clear about the client’s needs and knows how to satisfy them.
- The processes are the method used by the company to provide a service. That is, how the customer is served and what differential value the company has at this point. Dealing with the client throughout the service process will be vital to achieve differentiation within the market.
- The palpability ( physical evidence) is that the company contribution “evidence” confirming to the customer the quality of their service. For example: videos, photographs, opinions, recommendations … With tests we refer to the design and creation of strategies around the brand image, both physical and non-physical.
From 7P’s to 9P’s in the marketing mix
And the evolutions are still present, and we go from 7P’s to 9P’s. We add participation and prediction.
- Participation : so that the user feels part of the brand, always try to emphasize participation. It is advisable to create both online and offline communities in which users can participate and collaborate with your brand. In this way, you will achieve loyalty.
- Predict : this consists of identifying and attracting customers based on the quantitative values already collected. For this, there are monitoring tools.
Why is the Marketing Mix important for your company?
As you have seen throughout the article, the Marketing Mix can be considered the backbone of a good business strategy. A clear and planned Marketing Mix allows us to:
- Make changes to our products whenever necessary. In other words, it allows us to redesign and innovate.
- Attract new customers and recover the possible lost.
- Have a presence both virtually and physically and measure the strategies that are most effective.
- Establish alliances with external companies.
With clear planning and the right team, your business can go as far as it sets out. For this, it is advisable to set SMART objectives : specific, measurable, achievable, realistic and time.
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As you have seen, the Marketing Mix and the 4P’s are essential for anyone who wants to start or belong to the marketing department of a company. With the Master in Marketing, Sales and Digital Strategy Management you will be trained in Digital Marketing and will update you about the latest trends and market strategies so that you will be able to apply them successfully in any digital company. You dare?
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