Marketing Mix

Marketing Mix

August 22, 2011

The Marketing Mix is used by companies as a tool to break down a marketing plan into four parts. These four parts are usually called “the four Ps” are at the crux of a company’s success. The four Ps are Product, Price, Place, and Promotion. Each of these four parts works together in the marketing mix to create a marketing plan, and each has its own impact on the organization. Marketing decisions generally fall into one of the four parts of the marketing mix. The manager can control each of these key components, and they are subject to the constraints of the marketing environment, both internal and external (Management and Business, 2002).  

The first P, the Product, refers to either an actual manufactured product or a service. The Product is used to satisfy the customer or consumer.

    The Product is the first P in the mix. The Product refers to tangible, physical product, as well as service in an organization. The Product will be used to target and satisfy the customer or consumer. A Product can also be called a commodity due to the differences that range in physical and geographical. For example Coca-Cola, is one company that produces many different products that will satisfy almost any customer’s lifestyle.

    The Price is the next P in the market mix. The Price is the next step to the marketing mix. The price of a product depends on a few factors which are the product being offered, the competition pricing on an item that may be similar and the demand for that product or service. Companies can use different approaches to reach the most competitive price for the product to sale. One method that could be used is adding a markup to the existing cost of the item, which is known as cost-based pricing. The other method is called valued-based pricing. Valued-based pricing is simple a hypothesis of the maximum amount of money a person will spend on a product and then pricing it below that figure to make the product appealing(...