Accelerat ing t he world's research.

IOSR-JBM (www.iosrjournals.org)
Top Journal Best Impact Factor

Related papers Download a PDF Pack of t he best relat ed papers 

Market ing Mix of 4P'S for Compet it ive Advant age

Genevieve Law

A Review of Market ing Mix: 4Ps or More

Ioana Negoescu

Market ing St rat egy – component s, effect iveness & import ance of pricing – especially, in relat ion t o e…
Top Journal Best Impact Fact or, Rahul Gupt a
IOSR Journal of Business and Management (IOSRJBM)
ISSN: 2278-487X Volume 3, Issue 6 (Sep,-Oct. 2012), PP 40-45
www.iosrjournals.org

Marketing Mix of 4P’S for Competitive Advantage

Meera Singh1
1
(Computer Department (H.S.S), G.H. Raisoni Institute of Engineering & Technology/Pune University, India)

Abstract: The Marketing Mix comprises of four decisions which should be considered before launching a
product. Firms should plan targeted approach on these four different components and they are Product, Price,
and Place & Promotion. All the four variables help the firm in formulating strategic decisions necessary for
competitive advantage. The main objective of this article is to describe the importance of relationship of
various components of marketing mix for attaining competitive advantage in market. Marketing Mix comprises
of Product marketing mix and Service marketing mix. Generally the Product marketing mix consists of product,
price, place and promotion and it is generally used for marketing mix of tangible goods. However Service
marketing mix is related to three different variables for example people, process and physical evidence. The
term marketing mix became popular when Neil H. Borden published his article on “The concept of Marketing
Mix” in 1964. The marketing mix is characterised by four equally important variables. The first step is Product
plan for articulating a marketing plan. There are three parts of product plan, i.e. core product, augmented
product and the tertiary product. Not only product related decisions but also price related decisions like
whether the uniform price will be charged or different prices will be charged for the same product in different
markets. The third variable is „Place‟ and it is related to the decisions like where the product will be sold.
„Promotion‟ decisions are related to increase the sales. The marketing mix involves the decisions related to
which the products will be made available at a particular price, may be different price will be charged for the
same product as per different market, the marketing manager has to take into account the impact of different
factors which are categorised under the 4 P‟s to decide marketing mix for a product.
Keywords: Marketing Mix, Product, Price, Positioning, Promotion, Competitive Advantage

I. INTRODUCTION
Marketing mix is the combination of different marketing decision variables being used by the firm to
market its goods and services. After identifying the market and gathering the basic information about it, the next
step is the direction of market programming, is to decide upon the instruments and the strategy to meet the needs
of the customers and the challenge of the competitors. It offers an optimum combination of all marketing
ingredients so that companies can realise goals for example profit, sales volume, market share, return on
investment etc.The marketing mix is grouped under four elements i.e., Product, Price, Place, Promotion [1]. A
profitable formula of marketing operations is that mostly marketing mix changes as per marketing conditions
and also with changing environmental factors.
The marketing mix is a set of controllable variables that the company can use to influence the buyers
responses. Thus marketing manager decides the level of marketing expenditure in order to achieve marketing
objectives of the firm and after finalising the market budget it is decided that how to divide total marketing
budget among various tools in the marketing mix.
Marketing decisions are categorised in the following table no.1 below:

Table No. 1 Elements of 4 P’s

Product Price Promotion Place
Design Retail Strategies Special offers
Technology Wholesale Skimming Endorsements
Usefulness Internet Penetration Advertising
Value Direct sales Psychological User trials
Convenience Peer to peer Cost-plus Direct mailing
Quality Multi channel Loss leader Leaflets/posters
Packaging Free gifts
Branding Competitions
Warranties Joint ventures

The term marketing mix is coined by Neil H. Borden. It is the combination of the fair inputs of all the
important elements or ingredients that make up the marketing programmes as mentioned in the Fig.1. It

www.iosrjournals.org 40 | P a g e
 Marketing Mix of 4P‟S for Competitive Advantage
constitutes the core of company’s style of marketing. All these elements are very significant and depend upon
each other; the four elements in the marketing mix are inter related.

Fig. 1 Marketing Mix Cycle

II. CURRENT TREND

Always there are different factors that influence the development of strong customer relationships in
market [2]. Organizations are concentrating on the strong exchange relationships; and an understanding of
relationship value of a customer as there is a framework which suggests that interrelationship between the
variables of marketing mix at different levels. Each successive level of strategies results in ties that bind the
customer little closer to the firm.

2.1 Product
Product refers to a physical product or service for a consumer is ready to pay. It includes tangible
goods like furniture; garments, grocery items etc and intangible products like services are purchased by
consumers. The product is the key element of any marketing mix.

2.1.1 Product Life Cycle

It denotes the different stages through which the sale of any product changes in a time period. There are
four stages- introduction stage, growth stage, and maturity and decline stage. A product is introduced in the
market then it gains more and more customers as it grows [3]. Gradually the market stabilises and the product
becomes mature there after a period of time it declines because of the development and introduction of superior
competitors and is eventually withdrawn as shown in the figure.

Fig. 2 Product Life Cycle

2.1.2 Customer Life Cycle

The Customer Life Cycle (CLC) focuses on the building life time customers by creation and delivery
of value throughout the life of a customer. It incarnates the concept of marketing because this concept is
marketing oriented rather than product oriented. One amongst the crucial problem here is that generally every
organisation offers different types of product; hence it is inconceivable to maintain a uniform Customer Life
Cycle for every organisation.
For an illustration CANARA BANK has a number of products that it aims at its customers to maintain
lifetime relationship with it. An individual can start saving money at young age.12-15 year old are directed with
the live cash Account similarly 16-17 year old aimed with the Right Track Account. When an individual begins
to go in college or university then student loans are available and when he begins to work there are many types
of current and saving account. Apart from it he can also obtain home loan to buy a flat, car loan to buy a car. It

www.iosrjournals.org 41 | P a g e
 Marketing Mix of 4P‟S for Competitive Advantage
would be beneficial to take out a pension plan. As he progresses in his life then his family extends then he
ventures upon number of saving plans and schemes. Ultimately CANARA BANK offers him pension plans due
to this kind of strategies an organisation such as CANARA BANK can form and hold customers and then widen
additional products and services throughout a customer’s life.

Fig. 3 Customer Life Cycle

2.2 Price
Price is the amount the consumer must exchange to receive the offering [4]. As the price of a product
depends on different elements and hence it is changes constantly thus the pricing should be dynamic so that it
can bear the changes over duration. The important factor in pricing is the deciding the cost of the product,
strategy for marketing & its expenses related to distribution, advertisement expenses or any kind of price
variation in the market. Nonetheless if there is change in all the variables then generally the pricing of the
product may vary accordingly.

2.3 Promotion
Promotion is one of the most powerful elements in the marketing mix [5]. Sales promotion activities
are publicity, public relations, exhibition and demonstrations etc. It is marketing manager who decides the level
of marketing expenditure on promotion. Promotional activities are mainly intended to supplement personal
selling, advertising and publicity. Promotion helps the trader and sales force to represent the product t the
consumers in an effective manner and induce them to buy. Promotion consists of different blends of its
components which are used to achieve the company’s marketing goals.
Advertising is a powerful element of promotion mix. The main aim of the advertising is to create and
develop the image of a product in the market. It is one of the important tools of competition which maintains the
dynamism of industry. Promotion mix decides the positioning of the product in the target market. It should be
considered as expenditure and hence added to the cost of a product.

2.4 Place
It includes distribution channels, warehousing facilities, mode of transportation and inventory control
management thus it is a mechanism through which goods and services are moved from the service provider and
manufacturer to consumer. If the product is a business product then a business team is required to interact with
different clients and ensure the availability of the product for them. Distribution has a huge effect on the
profitability therefore a firm should have excellent supply chain and logistics management plan for distribution.
All the four variables of marketing mix are interconnected. By increasing the price of the product, the
demand of the product will be lessened and lesser distribution points will be required. On the other hand, the
product USP can be such that maximum concentration is on creating brand cognisance hence better pricing for a
product. Finally, the overall marketing mix can result in dynamic modelling based on customer feedback for
improving a product and the same can be launched as the upgraded product.

III. MARKETING MIX OF 4 P’S FOR COMPETITIVE ADVANTAGE: A CHALLENGE

Marketing Mix is the combination of four elements i.e. Product, Price, Promotion and Place and every
company has the option to design an optimum admix in order to create a trusted marketing strategy. The
marketing manager has to consider the behavioural forces and then decide marketing elements in his mix
considering the available resources. The manager must examine the resources of the company to decide a mix of
procedures that fit the resources. The top level management has to support their effort in supporting new ways
of business through the organization.

www.iosrjournals.org 42 | P a g e
 Marketing Mix of 4P‟S for Competitive Advantage
3.1 Theoretical Approach
Due to no specification on how much percentage of attention to product planning mixed with pricing or
how much of pricing. Or how much of physical distribution and how much of promotional efforts would bring
about an optimum result hence it cannot substitute an individual’s strategy. It is theoretical in nature.

3.2 Lack of Uniformity

There is no uniform opinion about the composition of the variables of marketing mix. It has led to
confusion and difficulty to understand the components of four elements.

3.3 Changing Environment

Marketing mix is dynamic and flexible concept. Thus it changes with the change in needs and
preferences of the customers and market forces like competition, government policies and marketing situation.

3.4 To Identify Target Customers

The marketing manager has to identify the target customers by discovering their needs as well as
expectations for deciding appropriate marketing mix. Proper market research, foresighted approaches are very
important factors to locate target markets.

IV. Strategies for marketing mix of 4p’s for competitive advantage

The Marketing mix by 4P’s is a conjuration and it can only be implemented by marketing managers.
Marketing mix is a greatest strategy for attaining competitive advantage for any firm. The customer is king thus
it is mandatory to employ excellent marketing mix by marketing manager is essential as these key elements will
satisfy the customer needs and demands. It is highly necessary to plan and implement appropriate Marketing
Mix of 4P’S for competitive advantage. Marketing management is about placing the right product, at the right
price, at the right place, at the right time. Following are the strategies for marketing mix by 4p’s for competitive
advantage:

4.1 Product Mix

A product, service is the starting point of all marketing activities. A product is a combination of
different attributes. It comprises of physical factors such as colour, design, features, performance and non
physical factors like value, quality etc. Product planning involves a variety of decision to be taken firmly to
bring the product in the market. Decisions concerning to product are related to the following –
4.1.1 Design is very important in a today’s world as it is all about gaining attention, focusing it on the product
and influencing the purchase decision of the customers. The design is directly linked to show success and
makes the difference because it leads to goal achievement.
4.1.2 Technology should be used to develop user friendly new products with product differentiation.
4.1.3 Usefulness of product can increase market share of the product as it is very essential component to have
competitive advantage in the market a product should be developed keeping extra uses in comparison to
same type of product available in the market. Product differentiation is established in the market by
increasing the usefulness of a product.
4.1.4 Value is something which is a look around of companies while developing a product so that if customers
are paying then they should not feel that they have been charged more than the manufacturing cost of the
product. Hence high performance product which meets or exceeds a customer demand related to a
product’s performance should be developed.
4.1.5 Convenience is a parameter related to usage of the product and the product should bring ease in life of
customer.
4.1.6 Quality gains customers as an individual always looks for good quality product or service.
4.1.7 Packaging is used for raising the product’s value. For an illustration, McDonald's had changed its
package design across 118 countries. Packaging increases the perceptual experiences about the quality of
the product.
4.1.8 Branding usually assures high or at least consistent quality and hence encourages repeat purchasing.
4.1.9 Warranties give an assurance to the customer about after sales service which assures the customer about
the durability of the product and maintains satisfied customers in the market.

4.2 Price Mix

The price is the amount a customer pays for a product. It is ascertained by various factors including
cost of material, product differentiation, competition, market share and the customer's perceived value of a
product [6]. The decisions related to the price are as follows-

www.iosrjournals.org 43 | P a g e
 Marketing Mix of 4P‟S for Competitive Advantage
4.2.1 Strategies pricing involves important decisions for a firm as there can be an option to fix the price of the
product on competitive basis, in this a marketer selects a competitive pricing strategy as he actually seeks
to compete on the basis of superior distribution, appealing advertisements and several other factors.
4.2.2 Skimming means pricing the product relatively high in comparison to the similar commodities and then
gradually reducing the price. The strategy of skimming allows the firm to recover its cost rapidly by
maximizing its sales revenue thus skimming strategy has been used effectively on gadgets like LCD’s,
calculators, laptops and DVD players.
4.2.3 Penetration pricing means fixing the price of the product comparatively low to similar goods assuming
that it will capture wide market and this will allow the company to raise the price of its product.
4.2.4 Psychological pricing is used all over the world therefore marketers believe certain prices are more
appealing than others to buyers this kind of image pricing are often envisioned. The psychological
pricing is done by the retailers by using price tag like `39.95, `19.98 or `9.99.
4.2.5 Cost-plus is a concept in which some companies try to maximize their profits by pricing their offerings
very high [7]. Every firm has different pricing objectives. It is the process of cost-based pricing where by
adding all costs associated with offering a commodity in the market by including the expenses related to
the production, transportation, distribution as well as marketing also an amount is added to cover profit.
4.2.6 Loss leader means use of low prices to attract new business. A marketer who selects a competitive
pricing strategy is attempting to use non price competition.

4.3 Place
Place is generally referred to as the distribution channel [8]. Place can be any physical store as well as
virtual stores. The process involved in transferring products from the producer to the consumer is known as
physical distribution. The decisions related to the place are following –
4.3.1 Retail. Retailers will have a much stronger relationship with the customer because he keeps several other
products of different brands this will lead to exposure of the consumer to many products. Often products
and services are promoted and merchandised by the retailers.
4.3.2 Wholesale. Wholesalers often cut down the price of a product in comparison to retail traders. Hence the
customers are generally satisfied to buy the product from them. Wholesalers print their own brochures to
promote sales of manufacturers. But they should be given some commission in the total sales revenue.
4.3.3 Internet. Generally customers buy products online by using web sites like Flipkart, eBay, Amazon,
Jabong etc. The main benefit of the Internet is that niche products reach a wide population with low entry
barriers as set up costs are comparatively less hence there is a epitome shift in commerce and
consumption via the Internet this led to a huge growth in e commerce.
4.3.4 Direct sales in any marketing are undertaken without a distributor or intermediary. In terms of promotion
it means that the marketing company has direct communication with the customer. For example
Aquaguard distributes through retailers however a customer can register directly with them for
information which is often delivered by e-mail or mail.
4.3.5 Peer to peer is a type of word of mouth as if a product is admired by an individual then he conveys the
message to his peer group and in market it is really effective.
4.3.6 Multi channel is very useful to have market share for different products and services and hence their
manufacturers or providers use different distribution channels. For example, a diamond ring can be
bought directly from the Gold smith, either on the telephone, or the Internet.

4.4 Promotion Mix

Promotion activities are meant to communicate & persuade the target market to buy the company’s
products. The firm chooses the product to meet the identified need of the target segment. The right distribution
channel is used to make the product available and the firm undertakes attention-getting promotion. The
decisions concerning promotion are related to the following –
4.4.1 Special offers are like buy one and get one free of cost or may be coupons, discounts, free accessories
(such as free blades with a new razor), introductory offers (such as buy LCD and get free set top box),
and so on.
4.4.2 Endorsements are important for promotion because consumers follow their role models, celebrities and
thus endorsement brings change in the mindset of the consumers.
4.4.3 Advertising is an important way of communication hence it is used to create awareness, and transmit
information in order to gain customers from the target market. There are many advertising mode and
media for example magazines, journals, movies television, Ad labs, outdoor advertisements (such as
posters) and newspapers.
4.4.4 User trials convince customers about the features of the product. It is important as any customer would
like to have a trial before buying it.

www.iosrjournals.org 44 | P a g e
 Marketing Mix of 4P‟S for Competitive Advantage
4.4.5 Direct mailing is very highly focussed upon targeting consumers based upon a database. As with all types
of marketing, the potential consumer is targeted based upon a series of attributes. Different agencies work
to design a highly focussed communication in the form of mails. The mail is marked to the potential
customers and responses are cautiously monitored.
4.4.6 Leaflets/posters are the mode of direct communication through with the information of the product is
conveyed to the customer and it is very effective.
4.4.7 Free gifts should be offered with the product because consumers look for additional benefits apart from a
good product.
4.4.8 Competitions create innovation and hence this spirit keeps alive the invention of new and creativity in
existing products in an organisation.
4.4.9 Joint ventures with suppliers and distributors bring more customers because the suppliers and distributors
become stake holders and they show interest in promoting the product.

V. CONCLUSION
This report is an overview of the past, present and future of the Marketing Mix of 4P’S for competitive
advantage. This report considers a wide view of Marketing Mix of 4P’s, as the biggest challenges before the
Marketing professionals in today’s world is to design an optimum marketing mix which takes care of both
customer’s satisfaction and organisational goals. All the elements of marketing mix need careful alteration and
minute study with complete concentration. Promotional tools depend upon the type of product, the price which
will be charged for the product and the procedure through which it would reach to the customer furthermore
while deciding the price of product; the important things to consider are manufacturing cost of the product,
promotion cost and amount incurred on distribution channels.
Marketing manager should be an expert in deciding marketing mix strategy by 4 P’s as marketing mix
has a very important role for attaining competitive advantage for the organization. Marketing manager should
meet the demand from different markets and also match the competition in the market by delivering satisfaction
to the customer. This is only possible by an accurate blend of all the elements 4P’s of marketing mix as it helps
in achieving organisational goals of profit maximization by high sales volume and attaining higher market share.

References
[1] Abrams, Rhonda (2000), Successful Business Plan: Secrets and Strategies, (Palo Alto; California: Running ‘R’ Media), xxix, Sec. II
p 47-288.
[2] Arthur Anderson (1998), Best Practices: Building You Business with Customer-Focused Solutions. New York: Simon & Schuster,
pp. 125-27.
[3] Borden, Neil H (1942). The Economic Effects of Advertising. Homewood, 111: Richard D. Irwin.
[4] Borden, Neil H & M. V. Marshall (1959). Advertising Management: Text and Cases. Homewood, III, Richard D. Irwin.
[5] Culliton, James W (1948). The Management of Marketing Costs. Boston: Division of Research, Graduate School of Business
Administration, Harvard University.
[6] Davenport, Thomas H. and Jeanne G. Harris (2007), Competing on Analytics: The New Science of Winning. Boston: Harvard
Business School Press.
[7] Kotler, Philip (1971), Marketing Decision Making: A Model-Building Approach. New York: Holt, Rinehart and Winston.
[8] Rasmussen, Andrea, Carolyn Ude, and Edward Landry (2007), HD Marketing 2010: Sharpening the Conversation. New York:
Booz Allen Hamilton.

www.iosrjournals.org 45 | P a g e