The marketing mix strategy is using 4P, as noted above, is an organizational tool used for strategic planning. To support a bit, marketing strategy includes both external elements that act on the functioning and impact your actions, such as the economy and consumer wants, and internal elements controlled by the organization and combined to maximize profits. Therefore, any marketing mix construct that works best to guide your schedule is the ‘best’ marketing mix to use in strategy development.
Talking about the product, they mean both tangible products, which we call service products, and goods, which are elusive. Now, strategies differ between goods and services, but today we will talk about marketing products in general.
The marketing mix strategy for products is to create products that solve consumers’ problems as we know that consumers are buying solutions and not products. Let’s think for a moment about what this means.
To follow our analogy, as a vegetarian, you might want the tofu to solve your craving for hunger, while another consumer might prefer burger or fries.
If you want to learn more about consumer groups, which we call segments, you can read it all here.
Often, a company will develop several products, each targeting a different market segment. For example, Proctor and Gamble make different laundry detergents for consumers who want different benefits from their detergent products that they sell. For example, Tide is meant for families who get their clothes dirty, while Cheer is designed for professionals who want to protect their clothes because they spend a lot on them. Most importantly, designing products for a particular market segment does not mean skimping on the entire market’s minimum standards. Hence, in our detergent market, we must always provide safe products that eliminate dirt and odors’ normal levels.
Development of a new product
It would be best if you thought about new product development to stay up to date by meeting the changing needs and wants of consumers. Below is a diagram showing how you develop new products.
Marketing mix strategy for product
When we think of marketing products, we normally think of differentiated products, like the above detergent example. Here, we can somehow brand our products as somewhat different from other brands fulfilling the same need. Now I have the option of charging a higher price because consumers want more of my product than my competitor’s products.
That now brings us to a discussion of pricing, and an important question all businesses face is how much should I charge for my product. You charge too high a price, and you don’t sell that many products. If you undercharge, your profits are not as good as they would have been. We call this an alternative cost, and it represents the money that is left on the table. Because your price has a big impact on your bottom line, charging “the right” price is critical to success.
Sometimes, companies approach the price as an accounting issue. In other words, you need to cover all costs and make some profit so that you use those numbers to develop your price.
Unfortunately, this ignores the concept of value that real consumers use to determine how much they’re willing to spend. The value is:
measures the value of a product or service and compares it with possible alternatives. This determines whether the customer believes they have received sufficient value for the product/service price.
The place is a little shaky to fit our 4P construction. Place refers to distribution, which refers to everything involved in moving products from one place to another. Thus, the place implies:
- storage room
- distribution channels
- manage payments between companies in a channel
For many products, distribution is a cost right after the product is manufactured. Hence, managing distribution costs effectively means earning more from each sale or offering products at a lower cost. This is why megastores like Amazon and Walmart give products at a cheaper cost.
Marketing mix strategy for the place
When creating your location strategy, remember that you want to keep costs down while meeting customer wishes regarding where to buy your product.
Since most of the posts on this site are about promotion, mainly digital promotion, I won’t be spending any more time on promotion today. Suffice it to say, and you need to educate your market about your brand, where to find it, and how your product is better for their needs than competing products.