The
Marketing Mix
(The 4 P's of Marketing)
(The 4 P's of Marketing)
Marketing decisions generally fall
into the following four controllable categories:
- Product
- Price
- Place (distribution)
- Promotion
The term "marketing mix"
became popularized after Neil H. Borden published his 1964 article, The
Concept of the Marketing Mix. Borden began using the term in his teaching
in the late 1940's after James Culliton had described the marketing manager as
a "mixer of ingredients". The ingredients in Borden's marketing mix
included product planning, pricing, branding, distribution channels, personal
selling, advertising, promotions, packaging, display, servicing, physical
handling, and fact finding and analysis. E. Jerome McCarthy later grouped these
ingredients into the four categories that today are known as the 4 P's of
marketing, depicted below:
The Marketing Mix

These four P's are the parameters
that the marketing manager can control, subject to the internal and external
constraints of the marketing environment. The goal is to make decisions that
center the four P's on the customers in the target market in order to create
perceived value and generate a positive response.
Product
Decisions
The term "product" refers
to tangible, physical products as well as services. Here are some examples of
the product decisions to be made:
- Brand name
- Functionality
- Styling
- Quality
- Safety
- Packaging
- Repairs and Support
- Warranty
- Accessories and services
Price
Decisions
Some examples of pricing decisions
to be made include:
- Pricing strategy (skim,
penetration, etc.)
- Suggested retail price
- Volume discounts and wholesale
pricing
- Cash and early payment
discounts
- Seasonal pricing
- Bundling
- Price flexibility
- Price discrimination
Distribution
(Place) Decisions
Distribution is about getting the
products to the customer. Some examples of distribution decisions include:
- Distribution channels
- Market coverage (inclusive,
selective, or exclusive distribution)
- Specific channel members
- Inventory management
- Warehousing
- Distribution centers
- Order processing
- Transportation
- Reverse logistics
Promotion
Decisions
In the context of the marketing mix,
promotion represents the various aspects of marketing communication, that is,
the communication of information about the product with the goal of generating
a positive customer response. Marketing communication decisions include:
- Promotional strategy (push,
pull, etc.)
- Advertising
- Personal selling & sales
force
- Sales promotions
- Public relations & publicity
- Marketing communications budget
Limitations
of the Marketing Mix Framework
The marketing mix framework was
particularly useful in the early days of the marketing
concept when
physical products represented a larger portion of the economy. Today, with
marketing more integrated into organizations and with a wider variety of
products and markets, some authors have attempted to extend its usefulness by
proposing a fifth P, such as packaging, people, process, etc. Today however,
the marketing mix most commonly remains based on the 4 P's. Despite its
limitations and perhaps because of its simplicity, the use of this framework
remains strong and many marketing textbooks have been organized around it.
Source :
http://www.netmba.com/marketing/mix/
Conclusion : Each of
the four P’s is a variable you control in creating the
marketing mix
that will attract customers to your business.
Your marketing
mix should be something you pay careful
attention to
because the success of your business depends on
it. As a
business manager, you determine how to use these
variables to
achieve your profit potential. This publication
introduces the four P’s of marketing and includes
worksheets
that will help
you determine the most effective marketing mix
for your
business.
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