The term “Marketing Mix” has, in recent years, become a mainstay concept for many companies, traditionally focused around price, product, location, and advertising. The marketing mix was first defined by Joseph E. Kurtz during a WWI lecture. Kurtz had coined the term in 1920 to define the composition of a new company’s marketing plan. According to Kurtz, the marketing mix was “a group of basic and important marketing instruments which may be grouped under the following heads: price, product, place, and marketing”. This definition was refined in Kurtz’s “The Standard of Marketing Practice” and has since been refined by the various marketing management associations.

what is marketing mix

In simple terms, marketing mix involves the four P’s of marketing. The P’s of marketing include Price, Product, Place, and Promotion. Marketing mix is determined by considering these four factors and balancing them with other possible factors in a strategic plan. The key areas of consideration are product, price, market share, advertising, and promotions. Each of these elements has its own specific importance within a marketing plan.

Let us begin our discussion on what is marketing mix with a closer examination of the product, or product category in question. The product should have strong sales appeal, product features, and a high profit margin. Additionally, it should be easy for the customer to locate and purchase. This information can be derived from direct marketing studies, consumer surveys, or from analysis of competitors. Analysis of competition can be accomplished by conducting an analysis of store traffic, magazine sales, national advertising expenditures, and even by performing a geographic assessment of the market.

Next, we will examine the marketing mix components that comprise the product in terms of price. This includes both the cost of the product and the cost of promotion. Cost of product is determined by the product cost including shipping and handling. Promotion cost consists of the price of creating the marketing message and its distribution to the consumer. Finally, there is an evaluation of the return on marketing investments which will take into account whether the consumer is able to make a purchasing decision after reading the marketing message, listening to a sales pitch, and/or watching a television ad.

In order to effectively evaluate the strength of each of these components, several characteristics of the product or service in question must be considered. For example, consumers’ reaction to a product or service may affect the overall effectiveness of the marketing mix. Similarly, the consumer’s reaction to the promotion will play a significant role in the evaluation of the promotion’s effectiveness. Finally, the marketing mix is evaluated on its effect on the overall economy and society as whole and will in all likelihood influence the type of government regulation and rules that will be applied to the promotion.

When determining the effectiveness of a marketing mix, four factors need to be considered. These include (a) the cost of the promotion including the amount of time and effort spent to create the marketing mix, (b) the level of consumer response, (c) the level of customer turnover and (d) the level of overall economic impact. Each of these factors and others should be thoroughly considered in order to ensure that the most appropriate marketing mix is chosen. This ensures that the product or service receives the maximum possible support and uses the maximum amount of available resources to maximize customer benefit.