If you are using social media in this era, then you definitely know the word ‘marketing’ which we can consider as backbone of the business.
People knows that marketing is brand awareness which can be done by hanging some posters and pamphlets, but this is only one part of marketing.
The complete marketing is putting right product with right price at right place in front of potential customer and which can be done with some predetermined tools which is termed as marketing mix.
Lets learn the complete meaning of Marketing mix.
“Marketing mix is a set of marketing tools that the companies or firms use to persue its marketing objectives in the target market.”
Supposing, you want to purchase a bike, what will you consider in market: what are the different bikes, best price offered by different companies, selected bikes are available in your city or not and you will select which you have most heard.
In the above example, we had talked about the four things which are already known as the marketing tools or 4 ps (pillars) of marketing:
1. Product = Bike
2. Price = Different prices
3. Place = Availability of selected bike
4. Promotion = Brand awareness of that company ( This is index)
These are the main four pillars of marketing mix. In this competitive market, a new or existing company had to consider these four components in order to survive in the market.
Lets learn the four pillars of marketing mix in detail:
A product is anything that can be offered to a customer to satisfy his or her need or want. If a company does not have any product, then the further pillars are wasteful.
A person will only buy your product if your product will satisfy their needs or wants. In other words it should deliver bundle of benefits against the paid price.
Now a product also has two aspects:
As its name clears that these are the products which are familiar to the customers or market already knows that product. For example, A mango drink which is already available in market.
Now, A new Businessmen always ask question that if a product is already available in market, then why a customer will buy that same product from me?
The solution for that problem is simple, that you had to differentiate your product from the other products which can be in form of price, quality, taste etc.
It is a complete reverse of the above mentioned type. These are the products which solves any unique problem in the market.
Lets take the example of zomato, a food delivery startup which delivers food at doorstep from different restaurants at affordable delivery charges. Founder of company identified these unique problems:
(i) Building a dish data base: If a person wants to eat Chinese food, then he can simply search on zomato app and can see different restaurents which offers Chinese food. It helps a consumer to find all dishes at one place.
(ii) Spam control: Before the inauguration of zomato, a person was not able to know the quality of food without ordering that food. But, with the access of zomato, a person now can see the ratings and reviews posted by other customer and judge the food on the basis of ratings.
Now we can see that zomato identified the problem and solved it with their startup which makes them a successful business.
Also, customers may be attracted by the packaging, ease-of-use, name, quality, design, or customer support.
What is the cost of that product or price of that product? We often ask this question while buying any product. A person buys only that product which offers more benefits or value in comparison to the price.
Price < Value provided by that product.
If your product delivers more comfort then paid price, then any other product will never compete with your product.
If a product is underpriced or priced very low compared to other products consumers may question its effectiveness or think that it’s “too good to be true”.
On the other hand, if you price your product too high, consumers may see it as overpriced and unnecessary. Unless you are an established luxury brand like Coach or Chanel, you’ll find it hard to make a sell.
There are mainly two strategies to set a price of product:
It is a strategy in which products are priced according to specific income groups which can be high or low. For example, Apple ( mobile phone brand ) charges a higher price for their phone compared to other phones and generally target high-income group. Their main focus is on low customers and high prices.
This strategy mainly works on cheap products. In this strategy, mainly those product works which have more customer base and can be sold at a cheap price. For example, Jio ( telecom brand, India ) has a very customer base of 387.5 million people which is very high.
Generally, In the grocery stores, mostly products are priced with odd decimals like $4.99 or $69.97 known as psychological prices. Customers find it more effective rather then $5 or $70 and that can generate more sales.
The strategy you choose for your product should be based on the value of your product, the production and distribution costs, consumer demand and competitive landscape.
Price is also heavily influenced by your customers. Of course, you also need to make profit.
Also, Price is the very easiest or fastest way to react in the market. It implies that you can beat your competitors by fluctuating in the price.
Now, you developed a product and set a competitive price, but what will happen if your product is not available to your target customers.
Now is the turn of third factor i.e. place. Place is the distribution of your product.
Mainly it includes two channels of distribution:
a. Direct Channel
b. Indirect Channel
It refers to channel of distribution which is free from intermediaries. Products are moved directly from manufacturer to consumers. It includes direct selling, online sales. Gold is a good example of Direct channel, as it does not consist any intermediaries.
In this channel, products do not deliver directly to their end-users. It consist some intermediaries. In this process Manufacturer transfer goods to Distributor and from Distributor to Wholesaler.
Wholesaler sells to Retailer. And finally Consumer purchase goods from Retailers. Retailers are mostly located in residential areas.
Edibles goods like Biscuits etc. are the good examples of Indirect channel.
Now, we had reached on the final step of marketing mix, promotion.
Promotion is the way to create brand awareness of a company and which helps to make space in the mind of customers. It can be done in various ways:
b. Sales Promotion
c. Public Relation
d. Direct Marketing
e. Personal selling
f. Digital Marketing
How do we get to know about multiple brands like Coca-Cola, Netflix, Pepsi, Dominos, Burger king, Subway etc.? Of course, from the advertisement.
Mainly advertising is taken as main source of promotion. Advertising Consist two parts:
i.Above the line: In this type of advertising, our brand is shown to all type of consumers like any age, any preference, any interest. It includes advertising in newspapers, pamphlets, Banners, holdings, Radio, Televisions etc.
ii. Below the line: This type of advertising is a very focused type of advertising. Mainly it includes Direct selling and Digital marketing.
Let assume, you have a product which is mainly for age between 18-24 and have interest in gaming, then you can target people who are between 18-24 and have keen interest in Gaming. Chances of conversions are very high and it costs very cheap compare to above the line.
According to J. Dolan- ‘The marketing channels helps to generate the demand for the company. The company then fulfills the demand and also provides after sale service through them. It also helps in giving the information and feedback from the customers’.
You have to choose type of advertising according to your customer base. If your most the customers are not on the internet, then you can’t choose below the line option.
Now, we learned all about marketing mix and their pillars. If you want to make successful your marketing campaigns, then it is essential to consider all these pillars because these pillars are created after analyzing all problems and drawbacks.
All variables are important. But, product is the most important, because all other pillars i.e. price, place and promotion depends on product.
The service marketing mix is an extension of the marketing mix. It has 7 elements. Four elements are the same as marketing mix i.e. product, price, place, and promotion. The other 3 are people, physical evidence, and process.
The 4ps of marketing is firstly proposed by E. Jerome McCarthy in 1960.
The insurance industry is a service industry. That’s why the service marketing mix will be applied to this service with its 7 elements.
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