Marketing mix involves creating a market offering to satisfy the needs of existing and potential customers. To create a market offering a business needs to take various crucial decisions like which product line to be chosen by the business, whether the business should manufacture or trade, which channel of distribution should be adopted, etc. Today we will be learning the following topics:
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Factors affecting marketing decisions
- Controllable Factors: These are those factors that can be influenced or changed at the level of the firm. For example, pricing of the product, packaging of the product, branding, etc.
- Uncontrollable Factors: These are environmental factors, it includes those factors which marketer cannot control. For example, Government policy, inflation rate, credit policies of banks, etc.
To be successful, organizations must make decisions regarding controllable factors after considering environmental variables.
Therefore, the marketing mix is a set of controllable variables that a firm can use to influence buyers’ decisions.
Elements of the Marketing Mix: 4 P’s
Product means goods & services or anything of value that is offered to the market for sale.
For example, TATA offers TATA steel, TATA truck, TATA salt, TATA nano, etc.
The concept of the product also includes the extended product, that is, after-sale service, handling customer’s complaints, etc.
Hence, product mix refers to all decisions related to the product such as its features, packaging, labeling, and branding of the product.
Price is the amount of money that a customer has to pay to obtain the product. It is a very crucial element of the marketing mix as customers highly price sensitive.
Price mix refers to important decisions related to the price of products such as the objective of price setting, factors affecting price, etc.
Place or physical distribution includes activities that make the firm product available to the target customer.
So, in place mix decisions related to channels of distribution, warehousing, inventory control, transportation, etc. are included.
All activities which intend to inform customers about the product of the company and convince them to buy these products are included in the promotion mix.
Promotion mix, includes decisions involving convincing the customer to buy their product, advertising, personal selling, sales promotion, publicity are the parts of promotion.
I hope, it was helpful.
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