Define the term marketing mix. Explain structure of marketing mix and its elements.

December 23, 2016 LINUX XURAAZ No comments exist

Meaning of Organisation

An organisation is a group of people that is structured and managed to achieve a common goal. Every organisation have a defined structure that determines relationship between its members, and assigns their roles, responsibilities, and authority.
Meaning of Marketing Organisation
Marketing organisation is a group of marketing persons brought together to make decisions on marketing areas like product, price, place, and promotion. Marketing organisation is the foundation of effective sales planning for systematic execution of plans and policies. Marketing organisation provides a system of relationships among various marketing functions to be performed by proper coordination among marketing persons.

Definition of Marketing Organisation
“Marketing organisation can be defined as a  formal or informal group of individuals working together to reach quantitative and  qualitative marketing objectives  by making decisions on product, price, place, and promotion.”

Types of Marketing Organisations
Marketers must have knowledge of what type of marketing organisation they have in place; and what type of marketing organisation the company actually needs. Following are the different types of marketing organisation that commonly exists today :-

  • Functional Type of  Marketing Organisation;
  • Product Oriented  Marketing Organisation;
  • Market/Territory Oriented  Marketing Organisation;
  • Customer Oriented  Marketing Organisation;

In functional type of marketing organisation the different marketing activities are grouped on the basis of functions to be performed like – product planning, market research, advertising, sales, or promotion. Each main function is further divided to sub-functions to be performed to achieve marketing objectives. Each sub function is managed by separate manager under the control of marketing manager.

Product oriented marketing organisation is common where organisation is producing or marketing wide variety of products. For each product or group of products a separate product manager is assigned and made responsible for marketing decisions for that particular product or group of products.

Market oriented marketing organisation is common in big organisations serving large number of customers spreading over large territories. Depot manager, district manager, area manager, zonal manager, divisional manager, etc., are assigned to manage each territories.

Customer oriented marketing organisation is common in organisations engaged in providing specialised services to different class of customer.

The Marketing Mix

 Marketing Notes - The Marketing Mix Summary 

  • Introduction to Marketing Mix
  • Definition of Marketing Mix 
  • Meaning of Marketing Mix
  • 4P’s – Producer-oriented Model
  • 4C’s – Consumer-oriented Model

Introduction to Marketing Mix

Marketing is the process of identifying, anticipating, and satisfying customers’ requirements with the purpose to make profits. In this process marketing managers and marketing representatives have to take various marketing decisions to make the operations profitable. They have to decide what combination of marketing policies and procedures be adopted to bring about desired behaviour of trade and consumers at minimum cost. They have to decide how can advertising, personal selling, pricing, packaging, channels, warehousing, and the other elements of marketing be manipulated and mixed to make marketing operations profitable. More specifically, they have to decide a marketing mix – a decision making method in relation with the product, price, promotion, and distribution.

The term Marketing Mix was introduced by Neil H. Borden in his article – “The Concept of Marketing Mix“. He learned about it in a research bulletin on the management of marketing costs, written by his associate, Prof. James Culliton. in 1948. In this study of manufacturers’ marketing costs he described the business executive as a “decider,” an “artist” – a “mixer of ingredients,” who sometimes follows a recipe prepared by others, sometimes prepares his own recipe as he goes along, sometimes adapts a recipe to the ingredients immediately available, and sometimes experiments with or invents ingredients no one else has tried. 

Definition of Marketing Mix

According to Philip KotlerMarketing Mix is the combination of four elements, called the 4P’s (product, Price, Promotion, and Place), that every company has the option of adding, subtracting, or modifying in order to create a desired marketing strategy”

According to Principles of Marketing, 14e, Kotler and Armstrong, 2012The Marketing Mix is the set of tactical marketing tools – Product, Price, Promotion, and Place – that the firm blends to produce the response it wants in the target market.”

Meaning of Marketing Mix

The Marketing Mix is a marketing tool used by marketing professionals. It is often crucial when determining product or brand’s offering, and it is also called as 4P’s (Product, Price, Promotion, and Place) of marketing.  However, in case of services of different nature the 4 P’s have been expanded to 7P’s or 8P’s.

In recent times, giving more importance to customer a new concept have been introduced, i.e. Concept of 4C’s. The Concept of 4C’s is more customer-driven replacement of 4P’s. According to Lauterborn’s the 4C’s are – Consumer, Cost, Communication, and Convenience. According to Shimizu’s the 4C’s are  -Commodity, Cost, Communication, and Channel.

4P’s – Producer-oriented Model of Marketing Mix

  • Product – Products are offerings that a marketer offers to the target audience to satisfy their needs and wants. Product can be tangible good or intangible service. Tangible products are goods like – cellphone, television, or motor car, whereas intangible products are services like – financial service in a bank, health treatment by a doctor, legal advice of a lawyer. 
  • Price – Price is the amount that is charged by marketer of his offerings or the amount that is paid by consumer for the use or consumption of the product. Price is crucial in determining the organisation’s profit and survival. Adjustments in price affects the demand and sales of the product. Marketers are required to be aware of the customer perceived value of the product to set the right price. 
  • Promotion – Promotion represents the different methods of communication that are used by marketer to inform target audience about the product. promotion includes – advertising, personal selling, public relation, and sales promotion. 
  • Place – Place or distribution refers to making the product available for customers at convenient and accessible places.

In case of services, the producer-oriented model of marketing mix is consists of 7P’s. Including the above 4P’s there are additional 3P’s – Physical Evidence, People, and Process. Physical evidence refers to elements like uniform of employees, signboards, and etc. People refers to the employees of the organisation comes in contact with the customers in the process of marketing. Process refers to the systems and processes followed within organisation.

4C’s – Consumer-oriented model of marketing Mix

  • Consumer – In this model the Product is replaced by Consumer. Marketers focuses more on consumer satisfaction. The product is designed and produced keeping in consideration the requirements of consumer. 
  • Cost – Price is replaced by Cost. Here the cost refers to the total cost of owning a product. It includes cost to use the product, cost to change the product, and cost of not choosing the competitor’s product. 
  • Communication – Promotion is replaced by Communication. Communication includes advertising, public relation, personal selling, and any method that can be used for proper,timely, and accurate communication between marketer and consumer.
  • Convenience – Place is replaced by Convenience. it focuses on ease of buying, convenience in reaching to the store/product, and convenience in getting product information.

-- Download Define the term marketing mix. Explain structure of marketing mix and its elements. as PDF --

Leave a Reply

Your email address will not be published. Required fields are marked *