As you start and progress through your Marketing journey, one fundamental strategic framework you need to understand and master over time is the Marketing Mix.
The Marketing Mix, often referred to as the 4 P’s, helps businesses develop and implement effective Marketing strategies to deliver growth targets.
As you build your Marketing technical knowledge, as a generalist, specialist or business owner, you need to understand what the Marketing Mix is about, why it matters and how to use it in your role.
1 – What is the Marketing Mix
2 – Why does the Marketing Mix matter
3 – How to use the Marketing Mix in your role
1 – What is the Marketing Mix
It encompasses four key elements that are crucial within the overall Marketing strategy of a brand.
Product
– This is the actual offering that a company provides to its customers. It includes the features, design, quality, branding, and any additional attributes that make the product or service unique.
– Key considerations involve understanding your target market needs, developing a product that meets those needs and ensuring it stands out in the market.
Tip:
– If you want to create a portfolio of products or services, you will need to decide if you want to adopt one overall Marketing Mix strategy across the full portfolio or develop a Marketing Mix specific to each brand proposition.
– Defining a brand portfolio strategy is not an easy task but if you approach it through the lens of the Marketing Mix (and customer segmentation), it will give you a structured approach and help you select your Marketing strategy.
Price
– Price refers to the amount of money customers are willing to pay for the product or service. It is a critical element that can impact the perceived value of the offering and influence buying decisions.
– Pricing strategies can vary, such as cost-based pricing, value-based pricing, or competitive pricing.
Finding the right balance between cost and perceived value is essential when deciding on this important component of Marketing strategy.
Tip:
– Included in this P, alongside the brand Recommended Selling Price (RSP), are price promotions and added value offers to incentivise purchase amongst customers.
– Pricing is a key component of brand strategy that Marketers need to influence and align closely with commercial and finance teams to deliver Marketing and business objectives.
Place
– Place refers to the distribution channels used to make the product or service available to the target market. It involves decisions about where and how customers will access the product.
– This includes considerations like choosing the right retail channels, online presence, logistics, and inventory management. The goal is to ensure that the product is conveniently accessible to the target audience.
Tip:
– Where your brand is discovered and seen can impact how it is perceived by your target market. Pending on your Marketing and business objectives, give some consideration on where you want your brand to show up in the physical and digital world.
– Gaining a wide distribution for your product is a great way to drive brand visibility and build brand awareness with your target market. So, make sure you are on top of Distribution metrics as a Marketer.
Promotion
– Promotion involves all the activities a company uses to communicate the overall proposition and value of its product / service to their target market and persuade customers to purchase it. It includes paid / owned / earned media, Experiential, Public Relations, working with Influencers etc…
– The key is to create awareness, generate interest, and drive customer action (trial, repeat purchase, advocacy).
Companies need to choose the most effective promotional channels based on their target audience and their Marketing objectives.
Tip:
– As Marketers have more and more ways to communicate and promote their products / services through physical and digital channels, a lot of Marketing teams focus is invested on this P of the Marketing Mix.
– Although Promotion is a key component of a brand Marketing strategy, Marketers need to ensure they give equal focus to the other 3 P’s of their brand Marketing Mix.
Note
Over time, the Marketing Mix framework has been extended beyond the traditional 4 P’s to include additional P’s: People, Processes, Physical Evidence.
This 7 P’s expanded model is particularly relevant in the service industries, where customer experience and interaction play a more significant role. The 7 P’s Marketing Mix model helps businesses consider all aspects of their offering and customer interactions when developing their Marketing strategies.
People
In service-oriented industries, the people involved in delivering the service become a critical factor.
This P emphasises the importance of employees, customer service representatives, and anyone else who interacts with customers in shaping the overall customer experience.
Process
This P refers to the processes and systems that a company has in place to deliver its products or services.
It involves the efficiency and effectiveness of operations, from order processing to customer service.
Physical evidence
In the context of services, physical evidence refers to the tangible elements that customers can see and experience.
It includes the physical environment, packaging, and any other tangible cues that contribute to the overall perception of the service.
2- Why does the Marketing Mix matter
The Marketing Mix is crucial when building brands because it provides a structured framework for companies to strategically plan and execute their Marketing efforts.
The Marketing Mix provides a customer-focused approach to Marketing, helping companies create, communicate, and deliver value to their target audience in a way that establishes a strong and enduring brand proposition and presence in market.
Here are several reasons why the Marketing Mix is essential in brand building:
Holistic approach
The Marketing Mix considers all aspects of a product or service, ensuring a holistic approach to Marketing.
This comprehensive view allows brands to create a consistent and cohesive message across all elements, reinforcing a unified brand proposition and brand identity.
Customer-centric strategy
By focusing on the 4 P’s – Product, Price, Place, and Promotion – companies can better understand and address the needs and preferences of their target audience.
This customer-centric approach helps build stronger connections with customers and enhances brand loyalty.
Competitive advantage
The Marketing Mix helps companies differentiate themselves from competitors.
Through careful consideration of product features, pricing strategies, distribution channels, and promotional activities, brands can carve out a unique position in the market, gaining a competitive advantage.
Adaptability to market changes
Markets are dynamic, and consumer preferences evolve.
The Marketing Mix is a flexible framework that allows brands to adapt to changing market conditions.
Regular assessments and adjustments in the mix ensure that brands stay relevant and responsive to the needs of their audience.
Effective resource allocation
The Marketing Mix helps in allocating company resources efficiently.
By understanding the role of each P within their overall Marketing strategy, companies can optimise their budget and efforts, focusing on the areas that will generate the most significant impact on brand building and business results.
Brand consistency
Consistency is key in brand building.
The Marketing Mix ensures that all components of the Marketing strategy align with the overall brand proposition.
Consistent messaging across product design, pricing, distribution, and promotion builds a strong and recognisable brand identity.
Strategic decision-making
The Marketing Mix guides strategic decision-making.
Whether launching a new product, entering a new market, or adjusting pricing, companies can make informed decisions that align with their brand objectives, creating a road map for sustained growth.
Customer perception
The Marketing Mix directly influences how customers perceive a brand.
A well-designed mix can enhance the perceived value of a product or service, shaping positive customer experiences and building a favourable brand image.
3 – How to use the Marketing Mix in your role
The application of the Marketing Mix can vary depending on whether you are in a generalist or specialist Marketing role.
While a Generalist oversees the entire Marketing strategy of a brand and ensures cohesion across the full Marketing Mix, a Specialist focuses on a specific element, leveraging deep expertise to optimise strategies within that domain.
Here is how each role might leverage the Marketing Mix:
Generalist Marketing role
As a generalist Marketer, you will be responsible for defining the entire Marketing strategy of a brand or specific product line. You will need to understand how each P within the Marketing Mix build the brand towards its desired proposition and targeted business results.
• Each P is a brand growth lever that can be pulled in isolation or in combination with the other P’s within the Mix in order to deliver specific Marketing and business objectives.
• As a Generalist, you need to develop a strong understanding and working experience of each P.
• This is likely to be built over time as you work on different assignments during your Marketing career.
But building such knowledge and experience early in your professional journey will serve you well, especially if you want to progress towards general management positions or start your own business.
Market research and analysis
Conducting comprehensive market research to understand customer needs, preferences, and trends is a crucial aspect of a generalist Marketing role.
This information helps in making informed decisions across all elements of the brand Marketing Mix.
Annual brand planning
Generalist Marketers are responsible for developing annual brand plans, which include evaluating the performance of the overall Marketing strategy and recommending how to evolve it going forward so the brand delivers its Marketing and business objectives.
This involves assessing all elements of the Marketing Mix!
Budget allocation
Generalist Marketers need to make decisions about budget allocation across the 4 P’s.
This involves determining how much budget goes into product development, pricing activities, distribution channels and promotional activities (such as paid advertising, experiential, PR), based on the overall Marketing and business goals for their brand.
Coordinating cross-functional teams
Generalist Marketers work with cross-functional teams, including product development (R&D), Sales and Finance.
Your role is to ensure that all teams align with the overall Marketing strategy set for your brand and that the Marketing Mix is applied consistently across different departments.
Watch out:
– Generalists need to make sure they retain the strategic leadership and ownership of their brand by being involved in all key decisions relating to the Marketing Mix.
– This is especially important for the P’s that financial and commercial teams tend to gravitate towards (i.e. Pricing) to drive value sales and deliver business targets.
Specialist Marketing role
In a specialist Marketing role, you would typically focus on one aspect of the Marketing Mix and work within a specialised team (Client or Agency side), such as:
• Product and Packaging development (Innovation team)
• Pricing & retail promotions (Commercial Operations team)
• Marketing activation within specific Distribution channels (Trade Marketing team)
• Brand Promotion (Integrated Communication team)
Note: When it comes to the Promotion ‘P’ within the Marketing Mix, you can find even more specialised roles relating to Social Media, SEO, email Marketing, PR, Influencers, Experiential etc…
Your expertise in that particular area is crucial for optimising strategies within that element of the brand Marketing Mix.
Developing specialised campaigns
Specialists are tasked with developing and executing specialised campaigns within their domain.
For example, a pricing specialist may design and implement pricing strategies that maximise the brand profitability and competitiveness.
Measuring performance
Specialists are responsible for measuring the performance of their specific activities, analysing and bench-marking data to optimise their area of the Marketing Mix, so that they can deliver towards the broader Marketing and business objectives for the brand.
Collaborating with cross-functional teams
While specialists focus on a specific element of the Marketing Mix, collaboration with other departments is still essential.
For instance, a promotion specialist needs to work closely with product development and distribution teams to ensure the coherence of Marketing efforts.
Staying abreast of industry trends
Specialists need to stay informed about industry trends and best practices within their area of expertise.
This knowledge is crucial for adapting strategies to changing market conditions and ensuring the brand remains competitive.
Conclusion
Understanding and leveraging the Marketing Mix framework is key when building brands.
It is a dynamic strategic framework that requires continuous adjustment and optimisation as market conditions, customer preferences, and competitive landscapes evolve.
By carefully managing the 4 P’s, businesses can create a comprehensive and cohesive Marketing strategy that addresses both the needs of the customers and the goals of the company.
No matter if you are working as a Marketing generalist, specialist or are a business owner, you need to build a strong understanding the full Marketing Mix and how to use each P to deliver your desired results.
A great way to build your working knowledge of this essential Marketing basic is to pick a brand you admire or compete against and identify each element of their Marketing Mix.
Try to do this exercise across different industries so you expose yourself to different approaches and sources of inspiration.