Marketing Mix | The 4Ps

Generating the optimal response in the market. Explanation of the 4Ps of E. Jerome McCarthy.

What is the Marketing Mix? Description

The Marketing Mix model (also known as the 4 P's) can be used by marketers as a tool to assist in defining the marketing strategy. Marketing managers use this method to attempt to generate the optimal response in the target market by blending 4 (or 5, or 7) variables in an optimal way. It is important to understand that the Marketing Mix principles are controllable variables. The Marketing Mix can be adjusted on a frequent basis to meet the changing needs of the target group and the other dynamics of the marketing environment.

Product	Historically, the thinking was: a good product will sell itself. However there are no bad products anymore in today's highly competitive markets. Plus there are many laws giving customers the right to send back products that he perceives as bad. Therefore the question on product has become: does the organization create what its intended customers want? Define the characteristics of your product or service that meets the needs of your customers.	Functionality; Quality; Appearance; Packaging; Brand; Service; Support; Warranty.
Price	How much are the intended customers willing to pay? Here we decide on a pricing strategy - do not let it just happen! Even if you decide not to ask (enough) money for a product or service, you must realize that this is a conscious decision and forms part of the pricing strategy. Although competing on price is as old as mankind, the consumer is often still sensitive for price discounts and special offers. Price has also an irrational side: something that is expensive must be good. Permanently competing on price is for many companies not a very sensible approach.	List Price; Discounts; Financing; Leasing Options; Allowances.
Place	Available at the right place, at the right time, in the right quantities? Some of the recent major changes in business have come about by changing Place. Think of the Internet and mobile telephones.	Locations; Logistics; Channel members; Channel Motivation; Market Coverage; Service Levels; Internet; Mobile.
Promotion	(How) are the chosen target groups informed or educated about the organization and its products? This includes all the weapons in the marketing armory - advertising, selling, sales promotions, Direct Marketing, Public Relations, etc. While the other three P's have lost much of their meanings in today's markets, Promotion has become the most important P to focus on.	Advertising; Public Relations; Message; Direct Sales; Sales; Media; Budget.

The function of the Marketing Mix is to help develop a package (mix) that will not only satisfy the needs of the customers within the target markets, but simultaneously to maximize the performance of the organization. There have been many attempts to increase the number of P's from 4 to 5P's in the Marketing Mix model. The most frequently mentioned one being People or Personnel. Booms and Bitner have suggested a 7-Ps approach for services-oriented companies.

Book: Nirmalya Kumar - Marketing As Strategy: Understanding the CEO's Agenda.. -

Book: David A. Aaker - Strategic Marketing Management -

Marketing Mix | The 4Ps Forum (28)

New Marketing Mix Concept: SAVE
We are familiar with the concept of 4P of marketing, Product, Place, Price and Promotion.
We are finding that these are no longer the same and it's time to replace them by a new marketing mix concept: SAVE:
- SOLUTION replacing Product: Do not define offerings by there features, functions and technological superiority, but by the needs they meet.
- ACCESS replacing Place: Don’t focus on individual purchase locations or channels. Develop an integrated cross channel presence that considers customers' entire purchase journey.
- VALUE replacing Price: Don’t stress on how price relates to production cost, profit margin or competitors price. Articulate benefits relative to price.
- EDUCATION replacing Promotion: Don’t rely just on advertisement, PR, and personal selling.
Provide information relevant to the customers specific needs at each point during the purchase process.

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Add a Living Element to the Marketing Mix
Ask any MBA student on the fundamentals of marketing and he will tell you about the 4Ps, Product, Price, Place and Promotion. As you know it was expanded to 7Ps, 11 Ps and so on … an endless list! But for simplicity we shall confine our discussions here to the traditional 4 Ps. We shall start with a hypothetical case that Jack faced.

--- The Dilemma that Jack Faced ---
Jack, from his childhood on wanted to make money and earn a name for him. He saw his academics as a means for that. Chasing this dream, he was bright in his studies as a child. After completing his primary education he opted for business education as he saw that as a route to his goal. Completing his undergraduate course he wanted to do his masters at the premier college in the country. Though the entry was tough, Jack gained admission. Now came his last hurdle in academics. Jack wanted to pass his MBA with flying colors (Editor: ~cum laude, with honours). Jack worked hard from day one on. He knew very well that he was not too far away from making his dream a reality. His hard work finally paid off! He was the best student in his batch and as a result he was hired as brand manager in the dream company he wished. Jack was happy since he had achieved his dream. But then came the real test.
In his role as brand manager. Jack was given the responsibility of launching a new brand product in a new market. His colleagues were very confident of him being successful as he was a well known superstar during his academics. Jack also was confident of making it big, since he knew he only had to apply the theories learnt in this practical case. He recalled his marketing classes. Crack the 4 Ps , the fundamentals and you are sure to succeed!
Product, Price Place and Promotion the 4 Ps. So, he began his work. He created a very good product, gave it a good price, made it available and gave it a good visibility.
But things didn't work out the way Jack planned and the product failed miserably in the market. It failed to deliver the desired results. He nor Jack's friends could believe it. He flopped.
That night Jack couldn't sleep well. He rolled on his bed trying to catch some sleep. The thought of his failure kept him awake. True, he was a superhero during his studies. But when it mattered he had failed in his first assignment. All his dreams lay shattered. The thought of him being labeled a flopper haunted him. What went wrong? He had really implemented all that he studied. But something was not right. Failures often teach you more than your success. What should be his take from this incident? Jack began thinking in this way and childhood lessons came to his rescue...
Classification between living things and non living things... The 4Ps of marketing... Look at them. All belong to one category. Non living things. Only a living thing can control a non living thing. Take the 4 Ps. They are super heroes themselves or individually. But can they work collectively? Is there any lubrication between them so that they can work towards the organizational goals. Can they work as a team? Jack could not sleep. Had he missed a major P which he failed to crack?

--- The missing link ---
Indeed the 4Ps are individual super stars. But when it comes to a collective or collaborative effort, they fail miserably. The traditional view of marketing is that the 4Ps are enough for a company’s success. The 4Ps form four quadrants. But there seems no interaction between them to attain a given set of goals/objectives. A link seems missing. Yes, the Ps can work towards something and you need them all, but which is the P which coordinates them and ensures their smooth functioning? Have a look at them. The 4Ps. Is there an element of redundancy in them? There seems to be something missing.
A missing link. Something which makes them collaborate. An additional P. Such extra P would coordinate all of them and ensure they work in unison. Well, what would fit there and must satisfy the condition of being a living thing. It can only be People. The major P. People ensure the smooth functioning of all other Ps. Was that the P Jack missed – the missing link? Could this 5th P be at the centre and all other 4 Ps around it in 4 quadrants? It ensures interaction between the other Ps (4Ps) and also it provides a two way link between all the others.

--- What should Jack have done? ---
Jack failed here. To crack the major P, it needs to be addressed before any other P is cracked! He understood that he failed here. His studies failed to teach him that the 4 Ps are not enough, there should be 5 indeed. Jack rolled on his bed. Did he discover something new? Failure teaches a thousand lessons, It helped him identify something lacking. Jack now had a good sleep. The next morning he woke up with tenfold strength to proclaim to the whole world as if he had discovered something new!

How the Marketing Mix Influences Operations
Can anyone explain the relevance of the marketing plan to operations management in an organization with an example?

What are the Implications for 4Ps if the Exchange Rate Changes
What are the implications for international marketing in case the exchange rates change?
How do changes in exchange rate affect Product?
How do changes in exchange rate affect Price?
How do changes in exchange rate affect Promotion?
How do changes in exchange rate affect Place/Distribution?

Marketing Mix Modelling
Hi all... What statistical techniques are used in marketing mix modelling?
How are they used? Please share your best practices and worst nightmares :-) Thanks...

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