What is marketing mix? Building a Marketing Mix Strategy 4Ps

Marketing Mix Concepts

What is marketing mix?

Marketing mix is ​​a tool that combines many different marketing activities and techniques to help businesses bring products/services that match the needs and desires of target customers, at affordable prices. their capabilities, on a distribution channel accessible to them, and promotional and communication campaigns tailored to their tastes. This is one of the basic concepts of modern marketing schools.

The Role of the Marketing Mix

What role does the marketing mix play in the marketing activities of the business? - FAQ

Marketing mix plays a core role in the overall marketing strategy of businesses, outlines the core elements in marketing and businesses need to master, build and optimize.

In addition, the marketing mix is ​​also the basis for businesses to create value for customers, differentiate, competitive advantage, build and reinforce brand value.

For the administrative role, the Marketing mix can be divided into departments and teams based on each of its main elements.

Classification of Marketing Mix

How many types of Marketing Mix are commonly used in businesses? - FAQ

There are a total of 5 types of Marketing Mix commonly used in businesses, including: 4Ps, 7Ps, 4Cs, 4As and 4Os.

1. 4Ps

4Ps
4Ps

There are many different types of marketing mix, but the most common is 4Ps  when applied in most businesses from large to small in the world. The key elements of the 4Ps include:

Product (product/service): is what businesses and organizations provide in the market to satisfy needs and satisfy target customers. Here, we can call the product/service by another more accurate term, Marketing offerings.

Price: The price to buy the product/service you offer or the cost a customer has to pay to own that product (service).

Place: The place, means, and way that customers can contact to buy and receive products or use services. For example: Buy at the store, supermarket, order online website, call to order...

Promotion: All promotional and communication activities for the purpose of spreading information about businesses, products and services.... (collectively referred to as Marketing messages) to target customers, as well as promoting Make the sales process faster and more efficient.

2. 7Ps


7Ps
7Ps

In addition to the same factors as 4Ps which are Product, Price, Place and Promotion, 7Ps also have 3 other factors which are:

People: A way for businesses to find, train, allocate & arrange personnel in appropriate positions to be able to run marketing activities smoothly and effectively.

Process: Build processes for the enterprise's human resources apparatus to operate quickly, efficiently and accurately with the set out strategies and marketing activities.

Physical Evidences: Are evidences (documents, images, videos, stories, reviews of acquaintances/celebs...) that help customers have confidence in the products/services of the company. enterprise.

In general, the above 3 elements of 7Ps are somewhat oriented towards governance.

3. 4Cs, 4As and 4Os

In some of the marketing literature there may be a record of the 4Cs, 4As and 4Os. In general, these forms of Marketing mix are actually another expression of the 4Ps, when the elements have the same meaning as the 4Ps, some elements are slightly different.

4Cs include:


4Cs
4Cs

  • Customer solutions -> Actually also refers to products/services according to 4Ps
  • Cost to users (cost to get solution) -> Equivalent to Price (price) by 4Ps
  • Convinience (customers can access your products/services conveniently?) -> Similar to Place (Distribution) according to 4Ps
  • Communication -> Similar to Promotion according to 4Ps

4As include:

4As
4As

  • Acceptability (What must your product/service be like for customers to accept?) -> Similar to Product according to 4Ps
  • Affordability (Can customers afford to pay for your product/service?) -> Equivalence with Price (price) according to 4Ps
  • Assessibility (Can customers access your product/service?) -> Place similarity according to 4Ps
  • Awareness (How many people know about your product/service?) -> Similar to Promotion by 4Ps

4Os includes:

4Os
4Os

  • Objects (What are the things you provide? How are they produced? What is the quality?) -> Similar to Product according to 4Ps
  • Objectives (profit, target revenue on each product) -> Similar to Price (price) according to 4Ps
  • Organization (How to organize and build a distribution system) -> Similar to Place (Distribution) according to 4Ps
  • Operation (How to operate programs, promotional activities, communication to target customers) -> Similar to Promotion according to 4Ps

What is marketing mix strategy?

Marketing mix strategy is a part of an enterprise's overall marketing strategy, in which strategic content revolves around marketing mix elements, developing marketing mix elements and using it to bring value to customers. improve the level of competition of products/services provided by enterprises in the market.

Marketing mix strategy in each business can be built in many different ways. Depending on the characteristics of the target market that the business has chosen, the organizational structure of the business, there are businesses that build each marketing mix strategy separately for each group of products/services, there are businesses that will develop a common marketing mix strategy for the entire product/service.

Before going into learning about the marketing mix strategy, you need to understand the concept of marketing mix as well as the types of marketing mix commonly applied in businesses. In this article, hocmarketing.org will present the content of building a Marketing strategy according to the 4Ps.

Thus, the 4Ps marketing mix strategy is a strategy that includes objectives, plans, directions, and implementation plans around the 4 elements of the 4Ps including: Product (Product), Price  (Price), Place (distribution). distribution) and Promotion based on the content of the overall marketing strategy.

Develop a marketing mix strategy 4Ps

Preparation

To be able to build an effective marketing mix strategy, businesses need to make sure that they have completed the first steps in the overall marketing process, including:

Market research: Understanding the market size, characteristics & behavior of customers, consumers, competitors, micro and macro environmental factors of the business will help Marketers There is a standard basis for building a marketing mix strategy.

Market segmentation & Identifying target segments: Market segmentation results help businesses build strategic content to reach target customers more accurately, more effectively, and avoid wasting resources. because I don't know where to focus.

Differentiation: Identifying competitive advantages and differentiating factors that businesses are aiming for will help marketers adjust marketing mix elements in the right direction that businesses want.

Product positioning: Setting product positioning goals is a guideline for marketers to deploy factors related to product quality and price in the right direction that businesses want.

Content to build a marketing mix strategy 4Ps

To have a better overview of the Marketing mix 4Ps strategy, let's refer to the following diagram:

According to the above diagram, in each Marketing mix tool, we have internal problems that need to be solved. The content of the marketing mix strategy is how the business solves those problems so that the business can meet the needs of the target customer in the best way that the business can.

A. Product/Service


Product is the first key element in the Marketing mix 4Ps strategy. The product/service itself is both an object of exchange in the market and a strategic element of each enterprise.

Product-related business issues include:


A1. Quality


Quality is always a top priority for a product/service that an enterprise provides to the market. Quality for a product can be: durability, stability, performance, experience when using... In fact, there is no clear standard to define a product/service that has high or low quality. Therefore, businesses or consumers will often bring competitors' products/services to compare quality factors. In terms of strategy, the quality of products/services high or low compared to competitors will depend on the product/service positioning strategy of the business.

Quality
Quality

A2. Design


For products, the design will include the constituent materials, shape, color, weight, volume, packaging, etc. As for the service, the design means the process of performing the service. , how businesses bring a good experience to consumers during the service is taking place.

For example, for common consumer products such as washing powder, liquid detergent, instant noodles, etc., enterprises will have to decide whether a bag of washing powder will have a weight and shape. How to design so that customers can easily use and maintain...

For fashion products, the product design process will be more complicated, businesses need to focus on exploiting the characteristics of target customers such as personality, preferences, perception, culture. ... to have a design tailored to the needs of the target customer.

design

A3. Feature


Although it only affects the quality of products/services, but features are factors that can make products/services different from competitors, as well as bring a great competitive advantage, contributing to convince customers to buy products/services of the business instead of the competitors.

features
Cars with reverse camera


A4. Brand name


Trademark is one of the basic identifying characteristics of a product/service in the market. The elements that make up a brand include: Name, logo and slogan. It is not difficult for businesses to put a trademark for their products/services, but they need to meet the following criteria:
  • Easy to read and easy to remember
  • Match the characteristics of the target audience (age, gender, culture...)
  • Bringing the unique features of the business, contributing to express the message and values of the business to customers
Name, logo and slogan


A5. Accompanied service


The accompanying service is one of the factors that bring added value to customers, helping to increase the customer's use experience many times.

Depending on the characteristics of products/services, markets, resources, financial capabilities, etc., businesses can include different accompanying services, such as warranty, maintenance, repair, etc. delivery and installation...

B. Price

The price of a product/service has a lot of meanings, both as the cost customers have to spend to own the product/service, and at the same time expressing the value of the product/service in the eyes of the customer. Work around the price of the product includes:

B1. Determine the selling price in the market


The determination of the selling price in the market is influenced by many factors, including the product/service positioning strategy that enterprises are applying, production costs, business operating costs, the level of competition. market competition...

Normally, an enterprise can apply one of the following pricing methods to determine the selling price for a product/service of an enterprise in the market: Markup pricing method, break-even point pricing...

The market price of a product/service may change over time, depending on specific circumstances... to have the best business performance. Therefore, businesses need a suitable pricing strategy to apply to the products/services they are providing.

B2. Payment methods


Depending on the characteristics of each market and the consumption behavior of target customers, businesses can apply appropriate payment methods. For the consumer market, store businesses often apply payment methods such as cash, bank cards, e-wallets, etc. Some businesses may apply installment payment methods to promote their businesses. sales number.

For the corporate market, usually transactions take place via wire transfer, but with trade-related conditions, such as time of payment, number of payments, etc.

Payment methods
Payment methods

C. Distribution (Place)


Place in the 4Ps means to include all business activities to help bring products/services to places where consumers can access to buy or use. These activities include building distribution channels, determining coverage, warehousing, and transportation.

C1. Build distribution channel


First, businesses need to choose a distribution channel model, or more specifically, determine the participants in the distribution channel and the relationship between those components. Current popular distribution channel models include Direct Distribution Channel, Indirect Distribution Channel, Traditional Distribution Channel, Modern Distribution Channel...

C2. Estimated coverage


Theoretically, the greater the coverage of the distribution, the higher the accessibility. However, in reality, businesses need to calculate the number of potential customers in each area to have an appropriate coverage level to save operating costs for the whole distribution system.

Estimated coverage
Estimated coverage

C3. Determine distribution location


The choice of distribution location will depend on many factors such as the distance to the point of sale, the distance to other distribution points, the cost of the premises, the mode of transportation. Therefore, businesses need to carefully calculate the above factors, and balance their resources to determine the distribution points in a reasonable way.

Determine distribution location
Determine distribution location

C4. Warehousing and shipping


To ensure that goods can be delivered to the right place to the point of sale or point of consumption in the right quantity, businesses need to well manage issues related to warehousing, and the transportation process.

Warehouses are responsible for storing raw materials for the production process, as well as finished products after the production process. Reasonable warehouse design, scientific inventory management will help businesses save costs, as well as contribute to improving the efficiency of distribution channels.

In order to choose the right mode of transportation, enterprises should base themselves on product characteristics, travel distances, and financial capabilities of the business. Some products require special methods to avoid damage in transit.

Warehousing and shipping
Warehousing and shipping


D. Promotion


The final big goal in the Marketing Mix 4Ps strategy is how the business will promote and communicate Marketing messages to customers, as well as what measures to promote the sales process, through 4 tools: promotional tools, called promotional tools or promotional mix:

D1. Advertising - Advertising


Although it is difficult to measure the effectiveness of advertising campaigns, it is an indispensable tool in any organizational business. This is a tool to help businesses spread messages to target customers in the most effective way. Businesses need to build advertising messages with clear goals, determine the size of the advertising campaign, as well as choose the advertising method that is suitable for each market and the financial capacity of the business. .

D2. Personal selling


For some markets with highly complex and differentiated products/services such as real estate, autos, insurance, etc., personal selling is a suitable tool to help businesses convey their messages. messages to consumers, build relationships with customers, as well as contribute to boosting sales.

Businesses need to calculate the number of individual salespeople needed, training, team building, as well as how to manage individual sales staff appropriately to achieve effective results. great results when using this tool

Personal selling is the earliest promotional tool in the business field. This tool uses sales force to reach target customers to introduce promotion and convince them to buy. Jobs in the personal selling field are:

Personal selling
Personal selling

D3. Sales Promotion (Sales Promotion/Trade Promotion)


At times when it is necessary to increase sales and improve sales efficiency, businesses can use Sales Promotion tools.

For the consumer market, businesses can use tools such as Trial Samples - Samples, Coupons - Coupons... while in the corporate market, sales promotion tools are usually applied. Trade discount, Support allowance of sales fees for distributors (Trade allowance)...

D4. PR - Public Relations


PR, also known as public relations, is one of the very popular activities in businesses today. Unlike advertising, PR brings a specific benefit to the community, and is more accepted by the community than advertising. Building an effective PR campaign will help businesses build a good image of themselves in the consumer community, stimulate the community's interest and attention about that business, which a advertising campaign is not necessarily possible.

According to the development of society, today's forms of PR have also become diverse and rich. Depending on the characteristics of the market, businesses can choose to use different PR forms such as: PR articles, Events, Sponsorships...

PR - Public Relations


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