Once the company has decided on its overall competitive marketing strategy, it is ready to begin planning the details of the marketing mix. The marketing mix is the set ofcontrollable marketing variables that the firm blends to produce the response it wants in the target market. These variables are often referred to as the “4 Ps.”
♦ Product stands for the“goods-and-service” combination the company offers to the target market. Strategies are needed for managing existing product, branding, packaging and other product features such as warrantees.
♦ Pricestands for the amount of money customers have to pay to obtain the product. Pricing strategies for entering a market, specially with a new product, must be designed.
♦ Place Strategies shouldbe taken for the management of channel(s) by which product is made available to customers through assembling, warehousing and transportation. Strategies applicable to the middleman such aswholesalers and retails must be designed.
♦ Promotion stands for activities that communicate the merits of the product and persuade target consumers to buy it. Strategies for advertising, personalselling, and sales promotion must be adjusted as a product move from an earlier stages from a later stage of its life.
Expanded Marketing Mix
In addition to the traditional four Ps the newmarketing mix
People: all human actors who influence the buyer’s perception- firm’s personnel and the customer himself.
Physical evidence: the environment in which the market offering is deliveredand where the firm and customer interact.
Process: the actual procedures, and mechanisms by which the product / service is delivered.
Further the 4 Ps seems to take the seller’s view ratherthan the buyer’s view.
Perhaps a better classification would be the 4 Cs:
a. Product = Customer Solution.
b. Price = Customer Cost.
c. Place = Convenience.
d. Promotion = Communication.