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Marketing mix
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A company’s marketing mix is the combination of products, pricing, places and
promotions it uses to differentiate itself from the competition. These four elements
are commonly referred to as the “four Ps.” There is strong dependency between each
of the Ps.
 Product—A product or service made by a company to meet a customer need.

Generally speaking, the better it meets that need, the more the company can
charge for it.
 Pricing—Pricing is based on how much it costs to make, market, distribute and sell
a product, and on the profit margin the company would like to achieve. When a
product is strongly differentiated, a company can price it higher than competitors’
products without losing market share.
 Place—Refers to all the ways customers search for, choose, buy and use a
company’s products or services. Companies need to consider these “places,” which
may be physical or online, when developing their marketing plan.
 Promotion—What many people think of when they hear the word “marketing.” It
refers to the overall campaign of communications used to sell a product. This
activity often includes advertising, sales promotion, in-person sales, public
relations, social media marketing, email marketing, search engine optimization
(SEO), video marketing and more.
A company with more than one market segment may have a different mix for each
segment, with a separate budget assigned to each one.
What Is Marketing Mix?
The definition of marketing mix can best be described as the combination of
elements used to promote products or services. These variable elements are based
upon the analysis of the “four P’s” of marketing: product, price, place, and
promotion. Specific marketing tactics are then formed from the intersection of these
four factors.
Marketing mix is considered an essential marketing theory that all business people
should know in order to be conversant in the field of marketing.
How Does Marketing Mix

Work?
No two products are promoted in exactly the same way. Therefore,
marketing managers develop product marketing plans based on their
analysis and interpretation of many factors:
 The product’s attributes: Features, benefits, proof points (e.g.

studies, testimonials)
 The target audience: Who will buy this product What problems will
this product solve? What media does this target audience prefer?
Where can we find them online, in print, on the airwaves? What do
they like to do in their free time?
 The price: Is it an inexpensive product? A luxury product? Something
in between?
 Brand: What is the company’s overall brand? What is the brand
promise? How does this product fit into the brand?
Once these questions are answered, marketing managers are able to craft
a marketing mix strategy (and the tactical plan necessary to achieve said
strategy). The marketing mix becomes part of the tactical plan and
describes the elements that will achieve the product’s sales goals.
Marketing Mix Elements

Marketing mix elements (also known as tactics) aren’t fixed but change over
time. Often, marketing managers test various elements of the marketing mix
to determine which tactics achieve the highest return on investment (ROI).
Common Marketing Mix Tactics

Marketing mix elements can include one or all of the following:
 A website or landing page for the product

 Search engine marketing
 Social media marketing
 Paid search ads
 Paid social media ads
 Product reviews
 Sales and marketing brochures
 Print advertising in magazines, newspapers, and journals
 Packaging to appeal to the target audience
 Billboards
 Sponsorships
 Online videos
 Trade show events
 Radio ads
 Television ads
 Store demonstrations
There’s really no limit to the creativity that marketers use to develop their
marketing mix elements. Similar products often use different marketing
mixes in the hope of reaching a slightly different target market (or covering
part of the market their competitors haven't).
What Are The Four Ps of

Marketing?
Grasping the concept of the four P’s of marketing is essential since they fit
together with the marketing mix to develop a marketing plan.
It always begins with an analysis of the product, the identification of a

product’s benefits, and matching the target audience’s needs to guide the
rest of the strategy (including choosing the appropriate price and where to
promote the product).
1. Product
Even the best marketing mix strategy can fail if the underlying product
concept is faulty. Building exceptional products is essential to the success
and profitability of any company.
The first step is deeply analyzing a product’s features, benefits, and

advantages over the competition. Competitive analysis can help determine
the differentiating features of their products that can be highlighted in their
marketing materials. Companies may also conduct market research to
discover the elements that customers find most appealing about their
products.
2. Price
Pricing products is both an art and a science. The price point for any
product must be profitable for the company while covering costs and adding
an adequate profit margin. Beyond that, determining retail price is a matter
of comparing similar products in the market, their price points, what prices
the target market is willing to pay, and how to leverage the psychological
impact of price.
Psychological pricing tactics utilize human psychology as part of the

marketing mix. Bargain prices often end in unusual numbers (such as
Home Depot, which often end '8') while luxury prices may end in '0'.
Depending on the target audience and the brand strategy, the final price
point may be a luxury price, bargain price, or something in-between.
3. Place
Place may happen online or in a store, but knowing where people are likely
to encounter, discover, and learn about products is essential.
Place can occasionally be easy to find. Golf enthusiasts, for instance, will
probably interact with new clubs at golf courses and pro shops. It might not
be as easy to determine where consumers might interact with a new flavor
of ice cream. Unlike golfers, the list could extend from supermarkets to
convenience stores, restaurants, food trucks, and special events.
Knowing where people interact with the product (or are likely to encounter
the product) leads directly into the last of the four P’s: promotion.
4. Promotion
Promotion refers to the activities chosen to advertise the product – and how
to distinguish and differentiate it in the marketplace. People often equate
promotion with marketing, but without product, price, and place, it’s difficult
to find the right promotional mix without wasting time and money.
Example of Marketing Mix
Jane is a marketing manager for Simple Smartphone, a new smartphone
developed for older people. Market research has revealed that people 60
and over find the newer generation of smartphones difficult to use. Jane’s
company took that information and developed a new product to compete in
the smartphone market against Apple, Samsung Galaxy, and similar
phones.
Marketing Mix Examples of

Companies
The following real-world marketing mix strategy examples focus on
companies that have chosen one area of the marketing mix to use as their
competitive advantage.
Dollar Tree leverages price as a factor by pricing everything in the store at

$1 or lower. This sends a strong signal to their target consumer that they’ll
save money by shopping at their stores.
Another example of marketing mix is Tiffany & Co. applying product as their
competitive edge. Their signature diamond cut (called a “Tiffany True Cut”)
is only available at their store. The “Tiffany Blue” of their packaging is so
distinctive that the Pantone Company has even named the color after the
brand.
Apple focuses on product innovation as the quadrant to leverage for their

competitive edge in the marketing mix. Although it has memorable
advertising, it’s the product design that sets Apple apart from all others.
Other Marketing Mix Strategy
Examples
Since the 4 P’s were introduced in the 1960s, others have used it to create
their own marketing mix strategies. This includes the 7 P’s model and the
Boston Consulting Group Matrix.
What Are The 7 Ps?

The 7 Ps of Marketing add three additional areas to evaluate the marketing
mix, including:
The Boston Consulting Group Matrix
The Boston Consulting Group Matrix assumes that the most effective way
to market products is by identifying the type of customers that the product
appeals to, then aligning the marketing strategy and mix to the customer
type.
The Boston Consulting Group Matrix works off of a four-grid system that
helps managers visualize where their products fall on the growth and profit
potential scale. If a product shows low market growth or low-profit potential,
managers select a marketing mix to boost market growth, profit potential, or
both.
Note: Boosting marketplace growth isn’t always possible if markets are

oversaturated and provide little room for expansion.
How to Interpret the BCG
Matrix
Each box in the BCG matrix reflects a category of low-to-high market
growth rate and low-to-high profit potential. The goal is to move question
marks and “pets” into either the cash cow or star category, the two most
profitable areas.
Stars
Stars are products with both high market growth rate and high relative
market share. These products have both a high potential growth rate but
may already have saturated the market.
Cash Cows
Cash cows are products with a low market growth rate but a relatively high
market share. Cash cows produce reliable, predictable revenue to a market
constantly consuming the product.
Question Marks
Question marks are in a high growth market but have relatively low market
share. The reason for their low market share needs to be solved. Can they
be moved into the Star category or Cash Cow category? If no, why not?
'Pets'
Pets are products with both a low growth market and low market share.
These products may need to be reinvigorated with new concepts,
packaging, or formulas – or retired and removed from the product line.
Marketing Strategy vs.

Marketing Mix
It’s important to understand the difference between marketing strategy and
marketing tactics (marketing mix).
Strategy is the long-term, forward-thinking plan that addresses sales in the
market. The strategy to reach the target market comes first. Then, the
marketing mix (tactics) is developed to support the strategy and sell a
specific product to a specific, identified market.
For example, Progressive Insurance's strategy appears to be to dominate

the market for home and auto insurance by promising low prices. To do so,
they use a recognizable spokesperson (Flo), television commercials, search
engine marketing, and social media marketing.
Why Marketing Mix Is

Important
Marketers live by the axiom, “Don’t put all your eggs in one basket.” It's
never wise to put all of your promotional dollars into one marketing tactic –
no matter how promising it seems.
Developing a marketing mix increases the chance of reaching more people

in the target market. It is the confluence of these elements – right product,
right time, right place, right person – that results in a sale.
How to Use a Marketing Mix to

Get Ahead
Whether using the four P’s, seven P’s, or the Boston model, the end goal is
the same: to make sales. Models simply help marketing managers think
through the many steps to choose the appropriate marketing tactics.

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Marketing mix

 Product—A product or service made by a company to meet a customer need.

How Does Marketing Mix

 The product’s attributes: Features, benefits, proof points (e.g.

Marketing Mix Elements

Common Marketing Mix Tactics

 A website or landing page for the product

What Are The Four Ps of

It always begins with an analysis of the product, the identification of a

The first step is deeply analyzing a product’s features, benefits, and

Psychological pricing tactics utilize human psychology as part of the

Marketing Mix Examples of

Dollar Tree leverages price as a factor by pricing everything in the store at

Apple focuses on product innovation as the quadrant to leverage for their

What Are The 7 Ps?

Note: Boosting marketplace growth isn’t always possible if markets are

Marketing Strategy vs.

For example, Progressive Insurance's strategy appears to be to dominate

Why Marketing Mix Is

Developing a marketing mix increases the chance of reaching more people

How to Use a Marketing Mix to

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