Q.What is Marketing Mix?

Marketing Mix is the set of controllable variables that a firm combines to influence demand and satisfy customers. The traditional mix has 4 P's — Product, Price, Place and Promotion. For services, three more are added — People, Process and Physical Evidence — giving the 7 P's of marketing.

Meaning of Marketing Mix

Marketing Mix means the combination of various marketing elements that a business uses to market its products and satisfy customer needs at a profit. These elements are controllable and can be adjusted by the firm. Philip Kotler and others popularised the concept. Originally there were four elements (4 P's); for the service sector three more were added, making it the 7 P's of marketing.

The 7 P's of Marketing

1. Product — This refers to the goods or services offered to satisfy customer needs. Decisions cover quality, design, features, brand name, packaging, variety, guarantee and after-sales service. The product must satisfy the needs and expectations of the target customers.

2. Price — This is the amount charged for the product. Pricing decisions include the pricing method, discounts, credit terms and price changes. Price must be reasonable to the customer and profitable to the firm, and it strongly affects demand.

3. Place (Physical Distribution) — This deals with making the product available to customers at the right place and time. It includes selecting channels of distribution, transportation, warehousing and inventory management so that goods reach consumers conveniently.

4. Promotion — This means informing and persuading customers to buy the product. It includes advertising, personal selling, sales promotion and publicity/public relations — together called the promotion mix — used to increase sales.

5. People — In services especially, employees who deal with customers greatly affect satisfaction. Well-trained, courteous and skilled staff create a good impression and build customer relationships.

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