How to Define Marketing Mix
- 1). Understand that at the core of the marketing mix is the product or service being sold. When the term became popular after WWII, it referred mostly to products, since the avalanche of available services did not begin until much later. In either case, the product must either meet an existing market demand, or it needs to fill a need created by the product, itself. For example, gasoline is needed by people to run many machines, thus it fills an existing need. On the other hand, no one needed a hula hoop until Whammo created a reason why people should buy one.
- 2). Keep in mind that where a customer can buy the product is critical to its marketability and it can happen through any number of delivery channels. How convenient the purchase of the product/service is to potential customers will greatly influence the volume of sales of the product. And with the explosion in Internet usage by consumers, we have just begun to see how important a sales medium in the future.
- 3). Know that what your product sells for will generally determine sales volume, particularly if it has many competitors in the marketplace. This is not so much the case when you are selling a more unique product whose availability is limited. That phenomenon is known as price elasticity and its effect on your product can be measured. Simplistically, a product's price can be determined in one of two ways. If consumers have a number of products to choose in the category, competitive pricing must drive the price of your product. If your product is unique, its price will be based on what the market will bear. Ultimately, price will have a material effect on sales.
- 4). Remember that how your customers learned about your product is the final element of the marketing mix. Essentially, things like advertising, point-of-sale displays and PR help close the gap between sellers and buyers and its usage will be based on what the company can afford as well as availability of opportunities.