Marketing Mix | The 4Ps

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Generating the optimal response in the market. Explanation of the 4Ps of E. Jerome McCarthy.


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What is the Marketing Mix? Description

The Marketing Mix model (also known as the 4 P's) can be used by marketers as a tool to assist in defining the marketing strategy. Marketing managers use this method to attempt to generate the optimal response in the target market by blending 4 (or 5, or 7) variables in an optimal way. It is important to understand that the Marketing Mix principles are controllable variables. The Marketing Mix can be adjusted on a frequent basis to meet the changing needs of the target group and the other dynamics of the marketing environment.


Historically, the thinking was: a good product will sell itself. However there are no bad products anymore in today's highly competitive markets. Plus there are many laws giving customers the right to send back products that he perceives as bad. Therefore the question on product has become: does the organization create what its intended customers want? Define the characteristics of your product or service that meets the needs of your customers. Functionality; Quality; Appearance; Packaging; Brand; Service; Support; Warranty.
Price How much are the intended customers willing to pay? Here we decide on a pricing strategy - do not let it just happen! Even if you decide not to ask (enough) money for a product or service, you must realize that this is a conscious decision and forms part of the pricing strategy. Although competing on price is as old as mankind, the consumer is often still sensitive for price discounts and special offers. Price has also an irrational side: something that is expensive must be good. Permanently competing on price is for many companies not a very sensible approach. List Price; Discounts; Financing; Leasing Options; Allowances.
Place Available at the right place, at the right time, in the right quantities? Some of the recent major changes in business have come about by changing Place. Think of the Internet and mobile telephones. Locations; Logistics; Channel members; Channel Motivation; Market Coverage; Service Levels; Internet; Mobile.
Promotion (How) are the chosen target groups informed or educated about the organization and its products? This includes all the weapons in the marketing armory - advertising, selling, sales promotions, Direct Marketing, Public Relations, etc. While the other three P's have lost much of their meanings in today's markets, Promotion has become the most important P to focus on. Advertising; Public Relations; Message; Direct Sales; Sales; Media; Budget.

The function of the Marketing Mix is to help develop a package (mix) that will not only satisfy the needs of the customers within the target markets, but simultaneously to maximize the performance of the organization. There have been many attempts to increase the number of P's from 4 to 5P's in the Marketing Mix model. The most frequently mentioned one being People or Personnel. Booms and Bitner have suggested a 7-Ps approach for services-oriented companies.

Book: Nirmalya Kumar - Marketing As Strategy: Understanding the CEO's Agenda.. -

Book: David A. Aaker - Strategic Marketing Management -

Marketing Mix | The 4Ps Forum (28 topics) Help
  New Marketing Mix Concept: SAVE  - We are familiar with the concept of 4P of marketing, Product, Place, Price and Promotion.
We are finding that these are no longer the same and it's time to replace them by a new marketing mix concept: SAVE:
- SOLUTION replacing Product: Do...
  Add a Living Element to the Marketing Mix  - Ask any MBA student on the fundamentals of marketing and he will tell you about the 4Ps, Product, Price, Place and Promotion. As you know it was expanded to 7Ps, 11 Ps and so on … an endless list! But for s...      
  How the Marketing Mix Influences Operations  - Can anyone explain the relevance of the marketing plan to operations management in an organization with an example?...      
  What are the Implications for 4Ps if the Exchange Rate Changes  - What are the implications for international marketing in case the exchange rates change?
How do changes in exchange rate affect Product?
How do changes in exchange rate affect Price?
How do changes in exchange rate affect Promotion?
  Marketing Mix Modelling  - Hi all... What statistical techniques are used in marketing mix modelling?
How are they used? Please share your best practices and worst nightmares :-) Thanks......
  What is the 5P's Marketing Mix?  - I want to know the following about the 5P model:
Where exactly does it fit in marketing and marketing research? Thank you....
  4P Implementation Steps. Order of Implementing the 4Ps?  - I would like to know what steps one takes in a 4P implementation. Is there any particular order? Please inform me....      
  4th P includes Image and Reputation  - Note that image and/or reputation are part of the P of Promotion....      
  Impact of Marketing Plan on Employees?  - Does a marketing plan have any impact upon the employees? Which?...      
  Marketing Mix P's for Online Companies  - I have a question, how will you prioritize the p's for an online company like for      
  Marketing Mix in Recession  - In view of the recession, how have the marketers adjusted their marketing strategies in terms of the 4P's in marketing in order to cater for the needs of the bottom of the pyramid consumers?...      
  What About This Period  - In the current situation of recession I think even the top marketing methods are not working. These days the customer looks at the mandatory requirements rather than going in to schemes and advertisements. I am sure almost none of the offers are work...      
  Marketing Mix Alternatives  - Are there any credible alternatives to the marketing mix?...      
  Marketing Mix for Business Planning  - Define the service, develop a benefit list, focus on what makes the business different from the competition, develop the positioning of the service provided, calculate financial benefits for the advantages and develop them as solutions to the custome...      
  Add Image to Marketing Mix: 4P + I  - The four P`s needs an additional I for Image. This is especially relevant for high-involvement products....      
  Examples of Marketing Mix  - I would like to see an example of the 4 ps of marketing with an example of air condition?...      
  The five V's for Marketing Mix  - Value, Viability, Volume, Variety, Virtue,...      
  Marketing = Marketing Mix + Customers = 4P's + C  - My teacher said that Marketing is the 4Ps plus a C (Customers). And he didn't explain it, so I really don't understand it too much. Can you help me explain it?
  Why is Using the Marketing Mix Important?  - What is the significance of an effective marketing mix?...      
  Customer in Center of 4Ps  - Why is the customer placed in the center of the 4ps?...      

See 8 more topics

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Compare with the 4-Ps: Extended Marketing Mix (7-Ps)  |  4S Web Marketing Mix  |  3C's  |  Product/Market Grid  |  SERVQUAL  |  Competitive Advantage framework  |  BCG Matrix  |  Bass Diffusion Model  |  Positioning  |  Co-Creation  |  Disruptive Innovation  |  Relationship Marketing

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