The Marketing Mix includes the basic tools marketers use to sell goods and services to target customers. They are as follows: Product, Price, Place and Promotion.
Product (Good or Service): is a set of benefits that you are providing to meet the needs of your customers. Product positioning strategies have been better tailored to customer needs and perceived benefits. The old approach was similar to the movie “Field of Dreams”: build it and they will come. No more. You must determine what your customer’s needs are and design a product that meets those needs.
Price (Value) – it is basically the amount that a customer is willing to give up to obtain a desired product or service. In today’s market, your pricing strategy will fall into one of the following categories: daily low prices, price-quality-value, and value-added. Wal-Mart is a perfect example of low prices every day, they tell you. Mercedes Benz is a good example of the price-quality-value pricing strategy. Their approach is that you will pay a little more, but you will get a better product. Today, basically everyone uses some form of added value to help distinguish their product. It is no longer an option, but a duty. Examples would include: 24-hour support hotlines, 60 days after sale service agreements, exchange clauses, extended payment options, no interest, etc., etc.
Square (Next): the channels and / or locations that sellers use to reach their buyers. Remember the “old” marketing phrase: location, location, location? Somehow it is still true. You just need to replace the location with traffic: traffic, traffic, traffic. You have to put your product or service in front of your customers. Most likely, your customer base is made up of a global audience; therefore, this task becomes more complex. It is absolutely necessary to develop a placement strategy that focuses on 21st century technologies in order to compete successfully in today’s market.
Promotion (Marketing Communications) – All the tools you use to communicate with your customers: advertising, personal selling, sales promotion, direct marketing, and public relations. With the advent of sophisticated multimedia opportunities, marketers have expanded their ability to communicate with their target audience. Fortunately, technologies have leveled the playing field. Anyone with an Internet connection can profitably reach a global audience. The key is to allocate promotional dollars only to your potential customers. How much does it cost you to acquire a target customer?
Regardless of the business model you choose, your success or failure will depend on how well you integrate the “4 Ps” into your daily tactics and long-term strategies.