Do you want to increase the demand for your services or products? Do you care about the impact on the market environment? Learn the marketing mix theory. What is it, what activities does it cover and how can it affect your company’s marketing strategy as well as sales and financial results? Read our guide, thanks to which you will discover the secrets and assumptions of the marketing mix strategy.
What is a marketing mix?
Marketing mix is a set of activities that should accompany the launch of a new product or service. If you meet the assumptions of the marketing mix theory, you will make sure that you offer your customers the right and useful product in the right place, time and price that guarantees you profit and demand. The idea of the marketing mix has evolved – at the beginning it included 4 elements, with time it was supplemented with another 3.
Marketing mix – its importance for your company
Why is it worth getting interested in the theory of marketing mix and what makes it beneficial for your company? What are the advantages of mix marketing?
– Helps you understand what customer expectations your service or product offers meets.
– Makes it easy to create a list of successful products that will be popular with customers.
– Enables you to plan, develop and implement effective marketing strategies.
– It allows you to avoid unnecessary costs related to the implementation of a product that would not be popular.
– Helps companies to capitalize on their strengths and identify and overcome possible difficulties and threats.
– Lets you find out how and when to promote your product to your customers.
– Helps in understanding and identifying customer requirements.
– Enables checking if the service or product is suitable for the customer group.
Marketing mix elements and models
Developing a marketing mix strategy for your business should begin with understanding the four foundations of that strategy. They make up the 4P model. These are:
Product in the marketing mix
A product in mix marketing is a product or service that you offer to your customers and thanks to which you meet their needs. When preparing a product or service for sale, you should consider its life cycle and anticipate the various challenges and problems that may arise in the sales process. If the demand for a product starts to decline, it means that you should think about improving it.
Price in the marketing mix
An important element of the mix marketing strategy is also the price that the customer will be willing to pay for your product or service. When calculating the target price of a product, take into account the cost of its production, its value to the customer, as well as the price ranges of competing companies for a similar product.
Place in the marketing mix strategy
The concept of place in the marketing mix strategy means the methods of product or service distribution. If the product will be sold at a stationary point, make sure that the location offers a chance for big sales. If you plan to sell online, check your online store for user experience – make sure it is intuitive to use.
Promotion in the marketing mix strategy
Marketing mix promotion refers to methods and ways of advertising a product or service to potential customers. If you are investing in a product that is sold online, don’t forget about internet marketing that includes:
– positioning of your company’s website or online store,
– paid Google Ads and Facebook Ads,
– promoting the product on their profiles in social media.
When thinking about promotion, it is also worth taking into account PR activities and high quality customer service.
An extensive marketing mix – 7P
The idea of a marketing mix for service companies was expanded by three more elements – this is how the 7P model was created, which includes the product, price, place and promotion, and additionally:
– people – people associated with your company, i.e. both employees and customers – to create a product that is useful for customers, you need to hire the right people for its production, promotion and customer service;
– process – an important element of the marketing mix are also all processes in your company aimed at offering customers a useful service; these are both production processes and customer service or sales to create a valuable and profitable product that brings profits, check if there are any bottlenecks in the production process that extend the process and increase its costs; think about how you can improve internal processes in your company;
– physical evidence in the marketing mix includes all the elements that users see when using your product or service. These include, for example: brand logo and product packaging. When preparing your product sales strategy, make sure that they are consistent with your values. Example? If you plan to sell a product with an ecological composition, also design the packaging made of environmentally friendly material and pack your products in the same way.
How to develop a mix marketing strategy in a few simple steps?
To build a marketing mix strategy for your company, you should analyze several key elements – incl. customer needs, their expectations and the expected profit from the implementation of the product or service.
Marketing mix strategy – step 1: Define your business goals and budget
When deciding to implement a product with the help of the marketing mix, you should define what your business goals are and what budget you allocate for them. Do you want to increase your sales and the number of customers? Or maybe you care about building awareness and recognition of the brand and creating the image of an expert? Define a specific and measurable goal (e.g. increasing the number of customers by 20%), and then define what funds you can allocate to it.
Marketing mix strategy – step 2: Get to know your client’s needs and expectations
Do you want to create a service or product that will be popular with your target customers? Find out who your customer is, what their needs and expectations are, and how your product can help them. Is your client a consumer or an entrepreneur? Divide customers into different segments and define their needs. Answer the questions:
– Who is your client?
– How can the client find your offer and where will he / she look for it?
– What information can your client be looking for (your experience, completed projects, client opinions)?
– Why a customer may want to buy your product or service – what makes you different?
Marketing mix strategy – step 3: Determine where your product is better than the competition’s offer
Do you want to find out why customers choose your product or service? Take advantage of their opinions. Through surveys and interviews, you can find out where your competitive advantage lies and further improve your position.
Marketing mix strategy – step 4: Know your competition
Conduct a competitive analysis to find out what tactics are used by other companies in your industry. How do they advertise their products and promote services? Who uses their services and why?
Marketing mix strategy – step 5: Plan your pricing policy
Based on the data obtained during the analysis of competitors in your industry, prepare a pricing strategy for your product or service. Remember that the price shouldn’t be too high or too low – your goal is to cover the costs, profit and value of the product.
Marketing mix strategy – step 6: Define distribution and promotion methods
What can you do to make customers learn about your product or service and make profits in line with the marketing mix theory? Plan how you will sell and promote the product. Will you invest in online sales and online advertising in the form of positioning and paid search campaigns? Will you be offering services locally or worldwide? Will you choose stationary sales or omnichannel in the form of online ordering and personal collection? Answer these questions at the stage of preparing your marketing mix strategy.
Marketing Mix – an effective marketing strategy for your company
Are you introducing a new product or service to the market? Do you want to find problems and obstacles that may stand in the way of your sales and financial success? Or maybe you want to define and reduce customer problems? In each of these cases, a marketing mix strategy will prove useful. Because although online advertising is a trade lever, the key to success is to prepare a product that meets the needs and expectations of users.