The 4 P's of the Marketing Mix
This hub will provide a brief description of the four elements of the marketing mix namely product, place, price, and promotion.
The first element of the marketing mix that will be addressed is the product. This is often considered the most important element of the marketing mix because without a product there is nothing to market. A rough description of a product is something that is “sold”. Some products are sold for a monetary value, some products do not produce a direct profit however the concept of the product needs to be sold. Often products that do not have a direct monetary value results in revenue / profit in a future product or service an sometime produce revenue / profit for another organization.
Before deciding on what product to sell it is wise for an organization to conduct a needs assessment and also to perform a strength, weakness, opportunity, threats, and trends analysis (SWOTT) to ensure there is a need for the product and that it is feasible to produce and sell the product.
After a product has been identified a marketing analysts has to determine where the products would be best place to reach the greatest number of potential buyers / consumers. Often this is determined in the needs assessment and/or SWOTT. A company could have the greatest product in the world however if it is not available where the customers are located it will not bring the profit that it could. An example of this is a website that is not listed in search engines or can not be found by its potential users.
The best product in the world with a high demand, in the best location priced wrong is still the wrong product. In addition to performing breakeven analyzes to determine what a product needs to gain to be able to offset fixed and variable costs an organization also needs to analyze current trends and the competition’s pricing. Often an organization needs to offer their products at lower costs to spark customer’s interest in their products or to make them stand out from the competition. Although there is normally a benefit to offering products at a discount there still is a lost that the organization must consume however in the big picture it discounts normally balance out with new customers.
The last element of the marketing mix is promotion. Promotion has been defined as “encouragement of the progress, growth, or acceptance of something; furtherance” (dictionary.com). In this context promotion is the progress, growth, and/or acceptance of the organizations product.
In conclusion, there are four major elements of a successful marketing mix product, place, price, and promotion. These four elements can be balanced to make a profitable and successful marketing campaign. If any of these elements are neglected than the organization might be left with a great supply than there is a demand.