Thus as we see from the above diagram, all the four variables of marketing mix are inter related and affect each other. By increasing the pricing of the product, demand of the product might lessen, and lesser distribution points might be needed. On the other hand, the product USP can be such that maximum concentration is on creating brand awareness, thereby increasing need of better pricing and more promotions. Finally, the overall marketing mix can result in your customer base asking for some improvement in the product, and the same can be launched as the upgraded product.

The marketing mix is predominately associated with the 4P’s of marketing, the 7P’s of service marketing, and the 4 Cs theories developed in the 1990s.

Definition of Marketing Mix

According to W. J. Stanton, "Marketing mix is the term used to describe the combination of the four inputs which constitute the core of a company's marketing system: the product, the price structure, the promotional activities, and the distribution system."

According to Philip Kotler, "A Marketing mix is the mixture of controllable marketing variables that the firm uses to pursue the sought level of sales in the target market."

The role of Four P’s of marketing in Strategy 

Marketing mix plays a crucial role while deciding the strategy of an organization. It is the first step even when a marketing plan or a business plan is being made. This is because, your marketing mix decision will also affect segmentation, targeting and positioning decisions. Based on products, segmentation and targeting will be done. Based on the price, positioning can be decided. And these decisions will likely affect the place and promotion decisions. Thus, the marketing mix strategy goes hand in hand with segmentation targeting and positioning.

The above four P’s of marketing give you an overall look at the product marketing mix. If your product is a service then there are 3 further P’s taken into consideration namely – people, physical evidence and process. For the same, you can refer the Service marketing mix.

Features of Marketing Mix

1. Combination of four marketing variables

Marketing mix is a combination/integration of four basic marketing variables namely, product, price, promotion and place. These variables are interdependent.

2. Useful for achieving marketing targets

Marketing mix aims at achieving marketing targets in terms of sales, profit and consumer satisfaction. It is rightly said that marketing mix is the marketing manager's instrument for attainment of marketing objectives/targets.

3. Flexible and dynamic concept

Marketing mix is not a rigid combination of four variables. It is in fact a flexible combination of variables. It is necessary to adjust the variables in the mix from time to time as per the changes in the marketing environment. It is the continuous monitoring of the marketing mix which facilitates appropriate changes in the mix.

4. Periodical adjacent of variables necessary

Marketing mix variables are interrelated and need suitable adjustments from time to time. Updating of marketing mix is essential for making it a powerful tool for achieving marketing targets. Updating is also essential due to environmental changes taking place within the firm.

5. Marketing manager acts as a mixer of ingredients

A marketing manager has to function as a mixer of marketing ingredients and has to achieve desired results through skillful combination of four Ps. He needs maturity, imagination and intelligence for appropriate blending of the variables.

6. Customer is the focus point

The main focus of marketing mix is the customer. His satisfaction and support are important. Variables of marketing mix are for giving more satisfaction and pleasure to consumers.

7. Variables are interrelated

Marketing mix variables are interrelated. Decisions in one area affect action in the other areas. An integrated approach is needed while making changes in the marketing mix variables.

8. Consumer-oriented activity

Marketing mix is a consumer-oriented activity as its purpose is to give satisfaction and pleasure to consumers. Here, the needs and expectations of consumers are given special attention and 4 Ps are adjusted accordingly.

9. Four Ps of sellers correspond to four Cs of customers

Four Ps in the marketing mix represent the sellers' view of the marketing tools available for influencing buyers. Each tool is designed to deliver a customer benefit.

Importance of marketing mix

1. It helps in a clean mix creation

Your marketing mix should have all the P’s compatible with each other. The price should be compatible with the placement of the product. The product should be compatible with the promotions. In general, all the P’s are intrinsically linked to each other.

As a result, when you are making a marketing mix, it becomes a chain of strong bonds. And these bonds then guide you forward in making the chain longer. Whenever you are considering adding a new feature or changing existing things, you have to look at the overall picture, which helps in creating a clean marketing mix for the product.

2. Marketing mix helps in New product development

While designing an existing product, there are any number of ideas which can come up for a related product that can be designed by the company. The pricing, place and promotions might be different for such a product. Nonetheless, it can be classified as a new product and hence while designing the marketing mix, the company can come up with good ideas for NPD as well.

3. Marketing mix helps increase the product portfolio

Whenever you want to increase the product depth or product line and length, you have to make minor changes to the product. In essence, you are making minor changes in the marketing mix itself. You are making changes to the product features, to its pricing and possible to its promotions. As a result, by altering the marketing mix and certain features within it, you can end up with an enlarged product portfolio.

4. It is a guide to improve a business

Physical evidence was an important P in the service marketing mix. If a restaurant or an interior design business realizes it’s important, then naturally they can act on it and improve the physical evidence of their business thereby bringing in more business.

The importance of marketing mix is evident in more than a single P. People and process are important to the organization too and optimizing both can improve the overall working of the organization. Hence, marketing mix is an excellent guide if someone wants to improve their business and is doing gap analysis.

5. It helps in differentiation

When you analyze the marketing mix of Competitors, there are many different ways that you can differentiate yourself from the competitor. The competitor might have poor promotions and by analyzing them, you can create better promotions of your own product.

The competitor might have poor placement of products or he might have the wrong process or the wrong people in place. All this can be improved upon giving you a better marketing mix and therefore a competitive advantage in the market.

6. Finally, it helps you in being dynamic

A company which is well prepared is also prepared when disaster strikes. During recession or during a poor business environment, a company should be ready to respond. At such times, the company needs to be dynamic in nature. Such a company needs to understand its product, processes, people, promotions and all other P’s better. If it understands them, it will respond with a better agility.

Thus, there are many ways that marketing mix may be important to an organization. The best part is, analyzing and understanding the marketing mix is not a lengthy procedure and the ROI on the time spent is much higher.

References

• http://kalyan-city.blogspot.in/2010/05/marketing-marketing-mix-4-ps-of.html

• http://marketingmix.co.uk/

• http://www.tutor2u.net/business/reference/marketing-mix-basic-4ps

• http://www.marketing91.com/marketing-mix-4-ps-marketing/

• http://www.marketing91.com/marketing-mix-duracell/

• https://www.thebalance.com/marketing-mix-what-is-it-and-how-to-use-it-1794425

• https://www.businessstudynotes.com/marketing/principle-of-marketing/product-classification-categories-of-products/

• https://www.toppr.com/guides/business-studies/marketing/product/

• https://www.marketing91.com/importance-marketing-mix/