The marketing mix consists of the 4 Ps: Product, Price, Promotion, Place.
- The product is the most important aspect of the marketing mix. The product can be a service or even a holiday destination. Products have both tangible and intangible benefits. Tangible benefits include benefits which can be measured such as the top speed of a car. Intangible benefits are benefits that cannot be measured such as the enjoyment the customer will get from the product. It is important that the product is changed as necessary to bring it up to date and prevent it from being overtaken by competitors.
- It is very important that the correct price is charged for a product. If the price is too high consumers will avoid the product as they will believe it to be too expensive yet if the product is priced too low they may believe that there is something wrong with the product for it to be so cheap. Also if the company charges too low a price, it may not cover its costs. There are many different pricing strategies that companies can use to decide on a price for their product including market and psychological pricing methods.
- Once the product has been made and the price set, it is important that potential customers are told about the product. Promotion can also be used for reassuring the consumer that the product is of good quality and persuading them to purchase the product. Promotional methods include: advertising, direct selling, point of sale and incentives.
- Place decides where the product is to be sold. There are 3 main distribution channels to choose from:
- Traditional - selling the product to wholesalers who will then sell the product on to retail outlets.
- Modern - producers selling the product directly to the retail outlet.
- Direct - the producer selling directly to the consumer such as door to door sales or over the internet.