Definition of Marketing Mix
Marketing Mix is a set of several marketing variables used by the company or businessman to complete the sales target according to what is expected.
In other words, a Marketing Mix is a combination of several elements of an integrated marketing strategy. Marketing Mix term was first introduced in 1948 by Neil Borden, Marketing Professor from Harvard.
In 1960, Jerome McCarthy introduced product, price, place, and promotion as the four main variables from Marketing Mix. Marketing Mix has a function to help formulate an efficient marketing strategy so that the product can be marketed to the right and appropriate target.
Marketing Mix Elements
In the beginning, there are only four main elements. Over time and the development of technology, Marketing Mix has been modified into seven elements by the experts. People know these elements as Marketing Mix 7P.
Product is anything that is produced to fulfill the people’s need. It can be a product, service, or virtual product. In this modern and digital era, the product isn’t only about service and physical products. Virtual products such as applications and websites also can be categorized as products. Something that needs to be considered in this aspect is that the product should be made based on market demand. It requires in-depth research to decide what the market needs. If the research is not done properly, the product risk of being failed is big. Sometimes, several business people or startups are trapped when they make a new product without doing market research and only rely on their subjective ideas. Moreover, it needs research about product value comparison so that the market will easier accept the product. The uniqueness and quality of the product or service can increase the competitiveness of the product.
The price in Marketing Mix is money or nominal that should be paid by the buyers or clients to get the offered product. The suggested price must be suitable for the quality of the product if the product is provided at a high price so it can decrease the customer's interest. Also, if the product is offered at a low price, the business will suffer a loss. In order to avoid failure, the businessman and startup can implement Break-Even Price that is on Economic Science. Break-Even Price is the smallest price or safe point applied to a product to minimize the possibility of being lost. For the maximum results, the businessman has to follow the market dynamics so the given price can be on the right level to be accepted by the market but still profits.
Place is the physical location in running the business or distribution channel to reach the target market segments. The strategic location affects business continuity. It’s not only the physical location, but the use of internet media is also profitable. With many internet users, it makes the businessman use this media as the selling stalls. The online platform such as marketplace, social media, and online website also facilitates the businessman to reach the target buyers.
Promotion is a move or effort to make the product or service known by people. With the development of technology, the promotion can be done in various media and online platforms so that the promotion will be faster. This process is usually based on the intended target market pattern to maximize product marketing.
- People (Human Resource)
Human resources on a company or startup are the important assets to determine whether the business develops or not. If human resources can not work optimally, it will cause a fatal impact on business progress. The poor recruitment process and without consideration, can worsen many aspects of the company. Human resources also affect productivity and business reputation.
Process refers to the procedures or steps that happened among the seller and consumer while using the company service. In short, process is the consumer experience from knowing the product to purchasing the product. The key to reach a successful business is consistency and patience. The product or service should be consistent with maintaining the quality of the product. An inconsistent product can ruin the consumer's experience, so they will not use the service again.
- Physical Evidence (Packaging)
Physical evidence is one of the important Marketing Mix elements. With good physical evidence, the first impression of the product will be more positive. Efficient packaging is the packaging which is suitable for the function of the product itself. The buyers are often considering the physical evidence of the product before they buy it. Therefore, the role of physical evidence of a product is significant.
Examples of Marketing Mix Implementation
- Media to determine the product that has a high demand
- Determine the media, platform, or place to market the product
- Plan the promotion strategy
- Determine the most suitable price
- The human resources recruitment process
- Create the company or startup Standard of Procedure (SOP)
- Determine an excellent and efficient Physical Evidence
The Purpose of Marketing Mix
1. Sales Promotion
The main purpose of sales promotion is as an index to increase the sales result. Sales promotion can be done by giving a discount, coupon, or free sample, which can increase the buyer's interest.
Advertising is an essential component of the Marketing Mix. The purpose is to share the information about the product or service that is offered to the target market, so the selling is increasing.
3. Direct Marketing
The purpose of using direct marketing is to directly communicate the offered product or service to the consumer that can be the target market.
A web page can contain hyperlink to another site or to a file to download, and other resources.
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