Marketing Mix (Basic 4P's)

The marketing mix deals with the way in which a business uses price, product, distribution and promotion to market and sell its product.

The basic marketing mix is often referred to as the "Four P's" - since the most important elements of marketing are concerned with:

Product - the product (or service) that the customer obtains

Price - how much the customer pays for the product

Place – how the product is distributed to the customer

Promotion - how the customer is found and persuaded to buy the product

It is known as a "mix" because each ingredient affects the other and the mix must overall be suitable to the target customer.

For instance:

High quality materials used in a product can mean that a higher price is obtainable

An advertising campaign carried in one area of the country requires distribution of the product to be in place in advance of the campaign to ensure there are no disappointed customers

Promotion is needed to emphasise the new features of a product

The marketing mix is the way in which the marketing strategy is put into action - in other words, the actions arising from the marketing plan.

An example of the 4P's marketing mix, as applied to the iPhone6, is illustrated below:

What makes for an effective marketing mix?

An effective marketing mix is one which:

• Meets customer needs
• Achieves marketing objectives
• Is balanced and consistent
• Creates a competitive advantage

The marketing mix for each business and industry will vary; it will also vary over time.

For most businesses, one or two elements of the mix will be seen as relatively more important than the others, as illustrated below: