Keeping in view the life cycle – The marketer must also consider the product mix by expanding the current product mix. Level of inventory depends on prediction of future demand. The objective of distribution planning is to make the product available to the consumers at a more convenient outlet. There are several benefits of the marketing mix that makes it important to businesses; Developing the correct marketing mix for your product or service starts with understanding the Ps of Marketing. Plastic package has assumed new importance in self-service retailing. The success of a market offer depends on how well and effectively the company has been able to use the combination of all the elements of marketing to create superior value for customers and thus achieve objectives of increased sales volume and higher profits. It is considered as very critical element. Place is a very important factor in the marketing mix. Once you have set realistic and measurable goals, determine how much you are willing to spend on achieving your objectives. 2 position in matter of five years. Promotion is a technique to create awareness amongst the potential consumers about the product and convince them that the utilities and benefits of the product would satisfy their needs and wants. Price is the value of a product expressed in terms of money. Place is concerned with all the decisions involved in getting the “right” product to the target market Place. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet advertisements through print media and billboards. This is the last element of marketing mix but very important as marketing goals can be achieved only if the products reach the hand of consumers conveniently. (e) Product Promotion – The manufacturers usually organise advertising and other sales promotion activities but the channels participate and take forward these activities to the customers. A product is viewed as an item that satisfies what a consumer needs or wants. Rather than figuring out how to "correctly use" the five Ps, think of them as reminders to encourage you to better research and plan your marketing strategy. Marketing is exchange of goods or services for a value. (g) Risk Taking – In the process of distribution the title of goods transfer from the manufacturer to the distributor who assumes the risk on account price and demand fluctuations, spoilage or any other kind of damage. What Will Training Look Like When It’s All Over? A product is a utility that satisfies the need of the consumer. Marketing decision related to ‘Place’ includes deciding the intermediaries to reach the target customers, the support to be provided to intermediaries to initiate sales to potential customers, stock levels to be maintained by firm and the intermediaries, storage, warehousing and transportation of goods from manufacturers to consumers. Studying pricing policies and strategies of the close competitors, 4. (d) Assorting – Middlemen build assortment of products for resale. Channels of distribution facilitate the following: a. The marketing strategic decisions are there in case of each segment and the variables that make. consumers may become over-reliant on sales promotion incentives which can undermine the development of favorable attitudes and brand loyalty. So without perception and persistence marketing mix of a new product can only be a failure. Largely it deals with non-price competition. Place or distribution mix stands for physical distribution system and its matching with consumer needs and to assure safe and timely supply of goods to the consumers wherever they are located. The pricing is a directly related factor to the profit and sale of products under different market conditions. i. There are five elements to consider: product, price, place, promotion, and people. In fact, it is an ambiguous state of affairs. It is the transportation which carries goods from the point of production to point of sale. Thus, a product is the sum total of parts like materials used in its construction and its ability to perform, its packaging, its brands and intangibles associated with it—all speak about its personality or image. viii. For e.g., Higher price lowers the demand and vice versa. Now, you have to get people to your "store," whether it's a brick-and-mortar or an online store. Hence, pricing constitutes one of the major problems of marketing management. Traditionally, the elements of the marketing mix referred to the 4 P's of marketing, although recently, a 5th P has been added. There are six main aspects to the communications mix that you should consider when developing your strategy. Product policy of a firm also deals with proper branding, right packaging, appropriate colour and other product features. Management must develop a physical distribution system for handling and transporting the goods through the selected channels. It involves capturing or “harvesting” the value created by the other elements of the marketing mix such as product, place and promotion. Designing a suitable distribution network, and long-term distribution strategies, ix. Selecting suitable channel of distribution. In some countries, this percentage is much higher. Hence, a product is the main element of the marketing mix. e. They provide authentic market information because of their direct contact with customers. Product is the main element of marketing. Otherwise, the whole marketing mix would fail to provide the desired result viz., the increase in sales. This offering may involve a physical good, a service, or a blend of both. Share Your PDF File This model is widely used in the service industry. Price mix is another important element of marketing mix. Price refers to the amount of money a customer has to pay to buy the product. Place or physical distribution refers to all the activities which make a product available to the target customers or in the target market. Like human beings, even a product has a certain life cycle which is divided into four stages-Introduction, Growth, Maturity and Decline. Since, it is based on the marketing concept, consumers can not be forgotten. The four major ingredients of the marketing mix are described as follows: A product is any good or service that consumers want. Place It deals with the dimension of product line, durability and other qualities. There are slight variations on what to include in the elements of a marketing mix. Please go to the Instagram Feed settings page to connect an account. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. This element concerns with making the products available to the customers effectively. 5. Choose the channels you will be distributing your product through based on the type of your product or service and your target customer. This knowledge will be especially helpful when you are creating your pricing strategy. How Do the Elements of a Marketing Mix Work? Place Mix 4. It helps to make sure that you are able to offer your customers the right product, at the right time and at the right place for the right price. One very important factor that you should never forget though is your target market. These includes sales promotions, customer service, public relations, advertising etc. Irrespective number, these constitute the heart of marketing decisions from the angle of marketer. This money represents the sum of values that consumers exchange for the benefit of having or using the product or services and is referred to as price of the product. Marketing decision related to ‘Promotion’ include deciding the combination of tools to be used to promote the product or service. Privacy Policy3. It is a very important part of the marketing mix as it is what you will use to attract the customers. iv. in some industries, promotion wars may develop whereby marketers sales promotion incentives extensively which results in lower profit margins and makes it difficult to sell products at full price, the credibility of publicity is usually higher than other forms of marketing communication, often has news value and generates word‑of‑mouth discussion among consumers, lack of control over what is said, when, where and how it is said, direct contact between buyer and seller allows for more communication flexibility, can tailor and adapt the message to specific needs or situation of the customer, allows for more immediate and direct feedback, promotional efforts can be targeted to specific markets and customers who are best prospects, difficult to have the consistent and uniform message delivered to all customers.
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