Mkt/421 Marketing Mix
Neil Borden, the president of the American Marketing Association in 1953, coined the term “marketing mix”. The marketing mix refers to Jerome McCarthy’s “4 P” method used to create an effective marketing strategy. The 4 p’s of the marketing mix are product, place, price, and promotion. (Investopedia, 2013) “Neil Borden”
Product refers to the creation or design of a good or service. It is here that the process begins in the life of a product. In this part of the marketing mix the design is made, the name is created, and even the packaging of the good is decided upon. This is where a product needs to be created in a way that makes the product marketable for its intended target. (Manktelow, 2013) Place is the process in when it is decided where the product is going to be sold and how the product will be distributed. Many questions are answered in this part of the process such as “Where do buyers look for this product?”, “What channels of distribution should be used?”, “Do we need to use a sales force, attend trade shows, or send samples to companies?”, and “What are competitors doing?” (Manktelow, 2013)
For example, a company producing power tools would not want to distribute their goods in a boutique. The intended customer base is not likely going to be found here. The correct distribution would be in a store where power tools are sold like Home Depot. While having a great product is important, you need to get it to the consumer in the most efficient manner.
Price is where the value of the product is determined. Pricing is just as important as the product itself. No matter how great a product is, it needs to be priced so that consumers will be willing to purchase it and so that it will make a profit that is worth investing in. Pricing also can offer a chance to get a leg up on the competition. In order to gain an advantage in market share a company may decide to price their product slightly lower than their
Product refers to the creation or design of a good or service. It is here that the process begins in the life of a product. In this part of the marketing mix the design is made, the name is created, and even the packaging of the good is decided upon. This is where a product needs to be created in a way that makes the product marketable for its intended target. (Manktelow, 2013) Place is the process in when it is decided where the product is going to be sold and how the product will be distributed. Many questions are answered in this part of the process such as “Where do buyers look for this product?”, “What channels of distribution should be used?”, “Do we need to use a sales force, attend trade shows, or send samples to companies?”, and “What are competitors doing?” (Manktelow, 2013)
For example, a company producing power tools would not want to distribute their goods in a boutique. The intended customer base is not likely going to be found here. The correct distribution would be in a store where power tools are sold like Home Depot. While having a great product is important, you need to get it to the consumer in the most efficient manner.
Price is where the value of the product is determined. Pricing is just as important as the product itself. No matter how great a product is, it needs to be priced so that consumers will be willing to purchase it and so that it will make a profit that is worth investing in. Pricing also can offer a chance to get a leg up on the competition. In order to gain an advantage in market share a company may decide to price their product slightly lower than their
References: Investopedia Staff, 2013; Marketing Mix; Retrieved June 3rd, 2013 from: http://www.investopedia.com/terms/m/marketing-mix.asp Manktelow, J. and Carlson, A.; 2013; The Marketing Mix and 4 P’s; Retrieved June 4th, 2013 from: http://www.mindtools.com/pages/article/newSTR_94.htm PayPal; Jan. 2012; Pay With PayPal at The Home Depot: Retrieved June 4th, 2013 from: http://www.youtube.com/watch?v=Q8P9qT9EIVk