In the recent past, “what is a marketing mix?” has become one of the most common questions companies new to Internet marketing face. The phrase “marketing mix” has been a cornerstone for companies, historically focused on price, product, location, and marketing. Today, the marketing mix is more complex than this, with many elements needed to work together for the same purpose. This article will help you understand what a marketing mix is, how it works, and what to do with each component.
What is a marketing mix? A marketing mix is a strategic approach to marketing products and services, which requires several key elements to be put together in order to make the most effective promotional effort. These elements are price, product, location, promotion and place. Let’s break these down and explore what each can mean to your business, along with how to best utilize them for maximum benefits.
Price: This is the most obvious element of a marketing mix, but is arguably the most important. Your overall cost of doing business, including your marketing costs, will dictate the success or failure of your business. Your cheapest, most direct marketing strategy is likely to result in sales just short of breaking even. Your long-term success depends heavily on this element. So pay close attention to how you plan to structure your product, pricing, promotion and place, as this will heavily influence the ultimate success of your strategy.
Product: The core product your company offers must have strong demand to remain in business and keep consumers happy. Many marketing professionals mistakenly believe the core product is all that needs to be done to be successful, but this is not true. While your core product may have demand, it does not necessarily translate into sales and profits. Therefore, marketing professionals spend a lot of time planning out their marketing plan to include strong demand based segments such as; high-end, fashion, lifestyle, etc.. All of these segments require a strong marketing plan to drive traffic to the websites.
Place: The final element of a marketing mix is to determine the right price for your products and services. You want to set your prices at the right level to generate profit while keeping your cost affordable. Marketing professionals often recommend that their clients set their prices at 10% less than their expected sales volume to test the profitability of the product/service. Once they determine the right price for their target market, they then strategically plan their marketing mix to include the right price range for their clients.
By following this simple guide, you will have the proper foundation for designing the right marketing mix for your target audience and your product/service. This knowledge will give you the tools necessary to create successful new products and services while ensuring that your competitors are not getting an early lead in the new market space. Your competitors will be studying your market space and trying to figure out what you are doing to attract new customers and clients. Learn from them, but do it better.