Marketing Mix
Marketing Mix is the term used to describe the combination of tactics used by a business to achieve its objectives by marketing its products or services effectively to a particular target customer group.
The right ingredients
Businesses need to make sure they are marketing the right product, to the right person, at the right price, in the right place, and at the right time.
Product
Marketing is about identifying, anticipating and satisfying customer needs. You need to be sure that your products and services continue to meet your customers' needs.
Place
'Place' is the means of distribution you select depending on the type of product or service you are marketing. Your choice will impact on your pricing and your promotion decisions.
Price
Price generates profit so is an important element of the mix. You must consider what your target group of customers will be prepared to pay for your product or service. It is important not to set the price too low as customers may think there is something wrong with the product. Equally, if you set the price too high, customers may think that it is too expensive for the benefits offered. Think about how you have 'positioned' your product in terms of quality. This will help you to assess how to price it.
Promotion
The combination of promotional tools you use will depend on the budget you make available, the message you wish to communicate and the group of customers you are targeting.
The promotional mix is made up of five elements:
- Advertising
- Sales Promotion
- Public Relations
- Direct Marketing
- Personal Selling
People
The people employed in your organisation will determine the quality of service your customers receive. This is truer for services, but also impacts on businesses making tangible products. Happy, skilled and motivated staff make happy customers. They are more likely to think about the customer and deliver good customer service if they are well trained and are recruited for their positive attitude to customers.
You can achieve a competitive advantage over your competitors through offering a high level of pre-sales and after-sales support and advice. Again, this can impact on the price you set, as customers are likely to be prepared to pay more for the service they receive but there may be a higher cost for you to take into account.
Process
The processes involved in delivering your products and services to the customer have an impact on the way in which your customers perceive you.
Look at all the processes involved in getting your products to the customer. Start with the identification of prospects and work through to after-sales support.
- Does any stage cause a delay?
- How can you improve this?
- Are your customers kept informed about what is happening?
- Do your staff keep their promises to customers?
- How effectively are you handling customer complaints?
Physical evidence is a term used to describe the type of image that your business portrays through its physical presence, namely its premises, the appearance of its staff, its vehicles, etc. When customers do not have anything that they can touch, see or try before they buy, they are more likely to assess you by the image you put across. It is therefore particularly important if you offer services rather than tangible products.
- How tangible is the product you market? If it is heavily dependent on the service element (for example, a restaurant, or hotel, or window cleaning service, or hairdressing) then you should pay particular attention to this element of the mix. Even if you are a manufacturer, this element is important if customers visit your premises.
- Ensure that the image portrayed by your organisation is consistent with the type of product or service you offer.
- Where can you make improvements?
